Economic Data
(CN) CHINA NOV HSBC FLASH MANUFACTURING PMI: 50.4 V 49.5 PRIOR (first reading above 50 in 13 months)
(TW) TAIWAN OCT UNEMPLOYMENT RATE: 4.3% V 4.3%E
(NZ) NEW ZEALAND OCT NET MIGRATION: 260 V 140 PRIOR (4-month high); m/m: -1.7% v -3.3% prior
(KR) SOUTH KOREA Q3 HOUSEHOLD CREDIT Y/Y: 5.6% V 5.8% PRIOR (growth slowing for 5th consecutive quarter)
(JP) Japan Oct Supermarket Sales y/y: -4.0% v -2.0% prior
(JP) Japan investors bought net ¥401.9B in Foreign Bonds last week vs bought net ¥378.4B prior week; Foreign Investors bought net ¥133.3B in Japan stocks last week vs sold net ¥79.0B in prior week
Markets Snapshot (as of 04:45GMT)
Nikkei225 +1.1%
S&P/ASX +1.0%
Kospi +0.9%
Shanghai Composite -0.5%
Hang Seng ++0.7%
Dec S&P500 +0.1% at 1,390
Dec gold +0.2% at $1,730/oz
Jan Crude Oil +0.2% at $87.58/brl
Notes/Observations
EUR/USD rose about 40 pips in early session following the monthly report out of German Finance Ministry forecasting slower growth and exports in Q4 before a recovery sets in later in H1 of 2013. Separately, Italy announced new plans to boost productivity in a move toward a more flexible labor sector. EUR/USD reached a 2-week high around $1.2870, while EUR/JPY cross rose above ¥106.20 - highest levels since early May. EU Fin Mins are meeting on Thursday to discuss longer-term budget considerations on proposed €1.03T package. German retail sales and PMIs also expected to be in focus in European session.
AUD/USD briefly touched the $1.04 handle after China HSBC Nov Flash Manuf PMI clawed out of 12-months of contraction. Analysts suggest the PMI figure, taken with improvement in China October data, further demonstrates the economic downturn had troughed. Shanghai Composite is the only regional index in the red, as further rise in manufacturing should further negate any speculation of RRR policy loosening by the PBoC overnight. Furthermore, China housing official confirmed earlier reports that the govt is considering expanding property tax trials beyond Shanghai and Chongqing in near future.
Korean Won came off the highs after Dep Fin Min Choi hinted the recent strength has been excessive. KRW was up about 9% over the past 6 month period before this Finance Ministry indication of a more pronounced line in the sand. Choi noted the govt is more concerned with the speed of the KRW rise rather than the levels, even though 1,080 has now served as support in USD/KRW on 3 separate occasions.
Currencies/Fixed Income/Commodities
USD/CNY: (CN) China's CNY currency (Yuan) hits the upper limit of its daily 1.0% range on OTC market at 6.2289
USD/KRW: Rises from 1,080 to 1,084 following comments from South Korea Dep Fin Min on KRW strength
USD/JPY: According to Societe Generale analysts, JPY likely to remain weak until Dec 16th elections, when reality of challenges in passing a new BOJ law sets in - financial press
SLV: iShares Silver Trust ETF daily holdings fall to 9,818 tons from 9,879 tons (lowest level since 9,768 on Sept 17h)
(IS) Israel army said to have not responded to the 5 rockets fired from Gaza following declaration of truce earlier today - financial press
Speakers/Political/In the Papers
(CN) HSBC chief economist for China: Flash PMI "confirms that the economic recovery continues to gain"
(CN) China Ministry of Industry and Information Technology (MIIT): China to add policies to improve industry structure
(CN) China Housing Ministry researcher: China 2013 property market likely to be better than 2012 - Chinese press
(JP) Japan Econ Min Maehara: LDP pledge to build facility on disputed islands requires careful debate
(JP) Japan Fin Min Jojima: Cabinet plans to approve economic package on Nov 30th - financial press
(US) Fed's Williams (Voter, dovish): Supports $85M of monthly treasury and mortgage backed security purchases in 2013 - financial press
Asia Equities
HMC: China's Dongfeng Honda states that anti-Japanese sentiment continuing to harm sales, to impact sales until H1 2013 - financial press
Toray 3402.JP: May miss Op profit target of ¥150B - Japanese press
Japan Airlines 9201.JP: JAL and ANA looking to further reduce costs to help offset declining revenues - Nikkei News
Mitsui 8031.JP: CFO: On track to reach ¥360B net profit for FY13/14, up from ¥310B forecasted for FY12/13 - Nikkei News
Santos STO.AU: CEO: 2012 production to rise 10% to 51-55MMBOE and 2013 production to rise to 53-57Mmboe; Sees 80-90MMBOE by 2020 - financial press
Woolworths WOW.AU: CEO: There were tighter retail conditions in FY12; First 4 months have been stronger, net profit in FY13 still expected to rise 3-6%