Asian Market Update

(JP) JAPAN Q3 CAPITAL SPENDING Q/Q: -9.8% V -3.6%E; EX-SOFTWARE Q/Q: -11.0% V -3.0%E

(JP) JAPAN NOV MONETARY BASE Y/Y: 19.5% V 17.0% PRIOR

(EU) EUROPE NOV MONSTER EMPLOYMENT INDEX M/M: 139 V 139 PRIOR, V 122 Y/Y

(US) US NOV MONSTER EMPLOYMENT INDEX M/M: 147 V 151 PRIOR, 134 Y/Y

(KS) South Korea NOV FX Reserves: $308.6B v $311B prior

Markets Snapshot (as of 04:45GMT)

Nikkei225 +0.1%

S&P/ASX +0.8%

Kospi -0.1%

Taiwan Taiex -0.5%

Singapore Straits Times Index -0.7%

Shanghai Composite -1.4%

Hang Seng -0.5%

S&P Futures +0.3% at 1,247

Feb Gold +0.4% at $1,746/oz

Jan Crude -0.1% at $100.15

Overview/Top Headlines

Markets were more cautious today, with some profit taking after yesterday's major gains and ahead of the traditionally volatile US non-farm payroll number due out in the US morning. Most markets traded to the downside, with Shanghai Composite the most volatile. With risk aversion a bit more on, Gold saw a 0.5% jump in the futures contract. Major currencies were relatively unchanged for the session only seeing a bit of movement heading into the start of the European session. Emerging market currencies were all down against the dollar on avg 0.2%.

Bank of Korea as part of releasing their November FX reserves announced they have increased their gold holdings by 15 tons. Gold now makes up 1.0% of reserves from 0.7% prior. South Korea, like China yesterday, announced an electricity price increase of 4.5% for the general public and a 6.5% increase for industrials.

An analyst from Westpac Banking expects that the Reserve Bank of Australia (RBA) will cut rates by 25 bps next week. Many of Australia's retailers are calling for additional rate cuts to spur stronger consumer spending.

Analysts continue to have mixed opinions about what the most recent PBoC RRR cut means. Mizuho Securities' Shen Jianguang expects at least five more RRR cuts, as frequently as once a month in the first half of next year, going on to say monetary policy easing and more expansionary fiscal policy will be the key to avoiding a hard landing next year. South China Morning Post cited that analysts expect that China will announce new stimulus measures at the upcoming conference and further ease money supply as inflation slows.

Speakers/Geopolitical/In the press

(CH) Former China Official Cheng Siwei: Sees 2012 GDP at 8.5% and CPI at 5.5% - Chinese press

Fed's Fisher: Does not expect the Fed to cut the discount rate

USD/JPY: (JP) Japan Fin Min Azumi: No comment on the possibility of a stealth intervention; Will not hesitate to act in forex markets if speculative moves are seen

(CH) China top 4 banks new yuan loans totaled CNY140B in NOV v CNY200B in OCT - Chinese press

Equities

Samsung Electronics, 005930.KS: Court extends ban on selling tablets in Australia until Apple's appeal date Dec 9th

DJS.AU: Exec: Focus is on managing costs and inventory, 2011 was very difficult

Inpex, 1605.JP: In final stage talks to sign an agreement with Total to develop Ichthys natural gas field in Australia - Nikkei

WDC: Guides Q2 Rev at least $1.8B v $1.2Be (guided Oct 19th R$1.05-1.25B v $2.6Be, ex-unusal charges); gross margins above the high end of its business model range of 18-23% (ex-flood charges)

ZNGA: Planning to sell 15% of common stock, looking to raise $1.0B pricing shares $8.50-10/shr - financial press