Trade The News | Oct 26, 2012 07:25AM ET
Economic Data
Asian equities are down sharply in the final session of the week as investors pare their bets on emerging markets over rising concern regarding the tech sector. Apple was the canary in the coalmine for the tech-heavy Taiwan and South Korea bourses, missing on top and bottom lines and also guiding next quarter well below consensus. Earlier, an official with Apple's biggest supplier Hon Hai said the Taiwan tech giant is looking to diversify its revenue away from some 40% reliance on Apple products. Samsung Electronics, despite winning some smartphone market share, was also seen as somewhat disappointing despite topping estimates, as shares fell by over 2% - more than the Kospi Composite. South Korea economy, long seen as fairly resilient for its exposure to tech and benefiting from Sino-Japanese tensions, posted disappointing prelim Q3 GDP that saw the slowest sequential growth in nearly 3 years.
Nikkei225 has reversed much of the overnight gains as traders bid the recent weakness in JPY following slightly higher than expected Japan inflation figures. USD/JPY retreated back toward the ¥80 handle, just as Japan cabinet unveiled a larger than expected ¥750B stimulus package. Econ Min Maehara said the stimulus portion details will be drawn up next month but overall estimated a 0.1% GDP increase in Japan's economy. The focus shifts to next week's BOJ decision on Oct 30th amid solidified expectations of about a ¥10T increase in its asset purchase program.
NZD/USD fell some 60 pips early in the day to as low as $0.8160 after the new RBNZ Gov Wheeler backtracked from overnight policy statement by suggesting the central bank will not rule out additional easing and may also intervene in the markets if conditions are met. Losses in the Kiwi were tracked by the Aussie selloff later in the day, as AUD/USD led the decliners among the major to the benefit of the greenback with a 50 pip drop toward the $1.03 handle.
Fixed Income/Currencies/Commodities
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