Cautious And Mixed Market Results Across Asia

NORTH AMERICA SEMI BOOK TO BILL RATIO: 0.94 V 1.05 PRIOR (1st reading below parity in 5-months, 3rd consecutive m/m decline)

(AU) AUSTRALIA Q2 EXPORT PRICE INDEX Q/Q: 1.0% V 0.0%E; IMPORT PRICE INDEX Q/Q: 2.4% V 1.5%E

(NZ) NEW ZEALAND CREDIT CARD SPENDING M/M: 0.8% V 0.4% PRIOR; Y/Y: 4.6% V 3.9% PRIOR

(NZ) NEW ZEALAND JUNE NET MIGRATION: 490 V 200 PRIOR

(CO) COLOMBIA MAY RETAIL SALES Y/Y: 0.9% V 3.8%E

(CO) COLOMBIA MAY INDUSTRIAL PRODUCTION Y/Y: -0.2% V -0.6%E

(JP) Japan investors bought ¥1.17T in foreign bonds last week vs ¥353B bought in prior week; foreign investors sold ¥133.8B in Japan stocks last week vs ¥3.6B sold prior.

Markets Snapshot (as of 04:30GMT)
Nikkei225 -0.9%

S&P/ASX -0.1%

Kospi +0.2%

Taiwan's Taiex -0.1%

Singapore Straits Times -0.4%

Shanghai Composite -0.4%

Hang Seng +0.2%

September S&P -0.3%

August gold +0.1% at $1,582/oz

August crude oil -0.5% at $92.24/brl

Overview/Top Headlines
Oil futures came off an 8-week high after geopolitical tensions, low US stockpiles and a weaker dollar drove them higher for more than a week. Equity markets were mixed with strong earnings from US tech giants Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Sandisk (NASDAQ:SNDK) offsetting some of the weakness from US economic data. Japanese names remain under pressure as the yen continues to strengthen and fears that US and China demand will be weakened as their economies slow down.

Bank of Japan Governor Shirakawa warned that the currency could see increased safe haven flows due to Europe and that the EU remains Japan's biggest risk. He also said Japan would reach 1% inflation sometime around FY14. Focus continues on commodities as prices of corn, wheat and soybeans continue to skyrocket as the US drought encompasses the nation.

Australia has even warned that the drought will impact food prices down under. NZD/USD consolidated ahead of next week's interest rate decision, stronger credit card spending was a positive data point out in the session but overall the currency was little changed heading into the weekend. In Korea the Kospi gained while the country's banks remained under pressure over concerns on the rate fixing investigation (a group of banks are seeking a group settlement), the won was weaker by 0.3%. EUR/USD stayed in a 30 pip range, topside around $1.2280, both Germany and Finland approved Spanish bank funding, though Finland will hold a no confidence on the measure.

Speakers/Geopolitical/In The Press
(CN) Larger size of reverse repo ops may delay the next RRR cut .- Chinese press

(VN) Vietnam Central Bank Governor Binh: Will not see further easing of monetary policy.

(CN) China Ministry of Commerce Chen Deming: Total imports could exceed $10T within 5-yrs.

(TW) Taiwan Central Bank said to have cut overnight lending rate by 1bps (7th consecutive day). - financial press

(CN) China Q2 Property Loans CNY323B, y/y: +20% v -54% in Q1. - HK press

Equities
LSE.UK: Enters into merger discussions with Singapore Exchange (SGX); merger potential of £7.2B. - Telegraph

Komatsu, 6301.JP: Chairman: Demand for mining equipment helps to ease the slump in China demand.

HDF.AU: ACCC will not oppose APA takeover on the condition that APA divests Maps.

HMC: Recalling 320K 2012 CR-V sports utility vehicles and 2013 Acura ILX sedan worldwide due to a door lock defect. - HK press

US Equities
DOLE: Reports Q2 $0.80 (adj) v $0.72e, R$1.72B v $1.8Be - filing; +1.4% after hours

AMD: Reports Q2 $0.06 v $0.07e, R$1.41B v $1.42Be; -3.3% after hours

FSL: Reports Q2 $0.07 v $0.03e, R$1.03B v $1.0Be; -11.8% after hours

MSFT: Reports Q4 $0.73 v $0.62e, R$18.60B (adj) v $18.2Be; +2.1% after hours

GOOG: Reports Q2 $10.12 v $10.13e, R$9.61B (ex-TAC) v $8.55Be; +2.7% after hours

CMG: Reports Q2 $2.56 v $2.30e, R$690.9M v $706Me; -12.3% after hours