Markets On The Lookout For Another Cut To RRREconomic Data
(AU) AUSTRALIA JUNE RBA FOREIGN EXCHANGE TRANSACTIONS (A$): 1.26B V 589M PRIOR
(AU) AUSTRALIA Q2 NAB BUSINESS CONFIDENCE: -2 V -1 PRIOR; CONDITIONS: -1 V +3 PRIOR
(NZ) NEW ZEALAND JUNE ANZ NZ JOB ADS M/M: -1.4% V 3.0% PRIOR
(KR) SOUTH KOREA JUNE DEPARTMENT STORE SALES Y/Y: -2.0% V 1.0% PRIOR; DISCOUNT STORE SALES Y/Y: -7.2% V -5.7% PRIOR
(JP) JAPAN MAY FINAL LEADING INDEX: 95.2 V 95.9 PRELIM; COINCIDENT INDEX: 95.8 V 95.8 PRELIM
(JP) Japan May All Industry Activity Index m/m: -0.3% v -0.3%e
Markets Snapshot (as of 04:30GMT)
Nikkei225 +1.0%
S&P/ASX +1.3%
Kospi +1.7%
Taiwan's Taiex +1.4%
Singapore Straits Times +0.4%
Shanghai Composite +1.1%
Hang Seng +1.6%
September S&P +0.3%
August gold +0.4% at $1,578/oz
August crude oil +0.6% at $90.42/brl
Overview/Top Headlines
Asian markets rallied strong in the session as major US names like IBM and Ebay reported strong results after the close and the US reported stronger new home starts. These positive prints in addition to renewed chatter that China's PBoC could again cut the RRR gave some relief across the region. AUD/USD hit an 11-week high against the USD at $1.04 as Germany's Bundesbank said it expected to diversify more into the A$ in Q3 and the Czech Central Bank disclosed it had bought $500M-1.0B worth of in the first half of 2012 (previously Russia Central Bank had said it was increasing its Aussie dollar holdings).
In China housing names remained weaker as China have given no indication that it will ease its property curbs. USD/JPY fell below ¥78.50, Japan officials were quiet in the session on yen strength. The euro was mostly unchanged trading in a small range as the markets focused on comments from German Chancellor Merkel, saying she was "optimistic" but could not be certain that the European project would work. Markets will now turn their attention to Spain's bond auction and Germany's vote on Spainish bank aid later in today's European session.
Speakers/Geopolitical/In The Press
(CN) China President Hu: Global uncertainty has increased; confident in China's development in the future. - Forum on China-Africa Cooperation
(TW) Taiwan Central Bank said to have cut overnight lending rate by 2bps (6th consecutive day). - financial press
(CN) China Banking Regulator (CBRC) Dep Chairman Yan Qingmin: Need to cut dependence on bank credit as a source of economic growth. - China Daily
(AU) RBA Head of Economics Research Heath: Policy makers are trying to improve risk management; financial system is working efficiently.
(CN) China top 4 banks issued CNY50B in loans in the first half of July. - Chinese press
(NZ) Westpac now expects RBNZ to leave cash rate at 2.5% until July 2013 (previously saw an increase in March 2013).
Equities
TSMC, 2330.TW: Reports Q2 Net NT$41.8B v NT$44.0Be; Rev NT$128.1B v NT$134.4Be
STO.AU: Reports Q2 Rev A$739M v A$599M y/y; Production 13MMBOE, +23% y/y; Affirms FY12 production 51-55MMBOE
WPL.AU: Reports Q2 Rev $1.43B v $1.2B q/q, +14% y/y; Production 20.1MMBOE v 14.1MMBOE q/q; Raises FY production target 77-83MMBOE (prior 73-81MMBOE)
VALE: Reports Q2 Iron ore production 80.5M tons v 70.0M tons q/q, +0.4% y/y
US Equities
NE: Reports Q2 $0.63 v $0.58e, R$899M v $901Me
COF: Reports Q2 $0.16 v $1.38e, R$5.06B v $5.15Be
YUM: Reports Q2 $0.67 (adj) v $0.70e, R$3.17B v $3.11Be; -2.2% after hours
MLNX: Reports Q2 $0.99 (unclear if comp) v $0.73e, R$134M v $120Me; Guides Q3 Rev $150-155M v $101Me; +43.3% after hours
EBAY: Reports Q2 $0.56 v $0.55e, R$3.40B v $3.36Be; +5.2% after hours
IBM: Reports Q2 $3.51 v $3.42e, R$25.8B v 26.3Be; +2.8% after hours
FFIV: Reports Q3 $1.14 v $1.14e, R$352.6M v $353Me; -1.1% after hours
QCOM: Reports Q3 $0.85 v $0.86e, R$4.63B v $4.69Be; +5.8% after hours