Asian Market Update: Japan steps up verbal intervention; Markets optimistic on easing, Rio Tinto affirms full year iron ore production

***Economic Data***
- (CN) CHINA JUN ACTUAL FOREIGN DIRECT INVESTMENT (FDI) Y/Y: -6.9% V -2.0%E
- (AU) RESERVE BANK OF AUSTRALIA (RBA) JUL MEETING MINUTES: Appropriate for interest rates to be a little below average given evidence of slower global growth and the low rate of inflation
- (AU) AUSTRALIA JUN NEW MOTOR VEHICLE SALES M/M: -0.6% V 2.3% PRIOR; Y/Y: 18.4% V 22.2% PRIOR
- (SG) SINGAPORE JUN ELECTRONIC EXPORTS Y/Y: 1.6 V 4.0%E; NON-OIL DOMESTIC EXPORTS M/M: 6.7% V 2.3%E; Y/Y: 6.8% V 2.0%E
- (NZ) NEW ZEALAND Q2 CONSUMER PRICES (CPI) Q/Q: 0.3% V 0.5%E; Y/Y: 1.0% V 1.1%E (lowest since Q4 of 1999)

***Markets Snapshot (as of 04:30GMT)***
- Nikkei225 +0.6%
- S&P/ASX +1.0%
- Kospi +0.7%
- Taiwan's Taiex +0.2%
- Singapore Straits Times +0.2%
- Shanghai Composite +0.6%
- Hang Seng +1.8%
- Sept S&P +0.5%
- Aug gold +0.2% at $1,595/oz
- Aug Crude oil +0.2% at $88.56/brl

***Overview/Top Headlines***
- Markets await US Fed Chairman Bernanke's semi-annual testimony later in the session in anticipation of a hint of future easing measures in the wake of weak retail sales and IMF's cut to global growth outlook. Markets also remain hopeful that China will step up to the plate and announce new measures. Though China Ministry of Commerce (MoFCom) Spokesperson Shen said China is confident of hitting 10% trade target, thinks exports hit bottom in January and 2012 trade surplus likely to exceed 2011's $160B. China state researcher Zheng Xinli said there are insufficient signs that China's economy has hit bottom... Whether the economy has reached a turning point or will continue to decline in the third quarter remains unclear. AUD/USD was up about 50 pips on the back of RBA meeting minutes indicating that it was appropriate for interest rates to be a little below average given evidence of slower global growth and the low rate of inflation. RBA also noted that developments have been more positive for the Chinese economy following some weaker data released the previous month and risks still remain from the European situation. USD/JPY gained a few pips testing ?79 level but it was unable to hold despite Japan Fin Min Azumi putting the yen's gains on speculators in the market. He also said Japan was prepared to act on excessive moves; will see if there needs to be stimulus measures after Q2 GDP data is released.
- Both wheat and corn futures remain over 1% as drought conditions cover more than half of US farm lands.

***Speakers/Geopolitical/In the press***
- (JP) Bank of Japan (BoJ) Member Nishimura: Need to be mindful that the US economy is not on a sustainable growth path and uncertain if it will ever return to its former strength - Nikkei
- (US) Kansas City Fed's George: US labor market is weighing on spending, economy is growing but slowly
- (CN) China state researcher Zheng Xinli: China GDP may continue to slow in Q3; Higher rate of investment is crucial to support economic growth - China Daily
- (NZ) Westpac economist: Reviewing projections for the first RBNZ rate hike; Expect tightening to start later than prior forecast of March 2013 - financial press
- (AU) Macquarie economist Redican: Australia's official unemployment rate could rise above 6% next year; stay-at-school youth and retirees are currently keeping the official level artificially low - SMH

***Equities***
- RIO: Reports Q2 iron ore attributable output 49M v 46M tons q/q, flat y/y; Affirms FY12 Iron ore production 250M tons
- Asiana Airlines, 020560.KR: To raise domestic flight fares by about 9.9% on average starting next month - Korean press
- FMG.AU: Reports Q4 Iron ore production: 19.2M v 13.6M tons q/q v 12.4M tons y/y; Shipped 17.8M v 12.6M tons q/q v 11.5M tons y/y
- Cathay Pacific, 293.HK: June cargo tonnage fell 5.4% y/y to 127.7 tons; Passenger volume rose 6.2% to 2.41M - SCMP
- Cheung Kong Holdings, 1.HK: Exec: Has sold 2.7K new units since the start of the year, worth HK$17B; now over halfway to full year sales target of HK$30B - HK press

***US Equities***
- F: Spokesperson: Australia unit to cut up to 440 positions, mostly in manufacturing, at Melbourne and Geelong plants; To cut production by 29% in Australia; -0.1% after hours
- FLIR: Reports prelim Q2 $0.30 v $0.36e, Rev $338M v $380Me; Lowers FY12 $1.40-1.50 v $1.62e, R$1.40-1.50B v 1.55Be (guided $1.60-1.70, R$1.55-1.65B prior); +2.1% after hours
- SFG: Reports prelim Q2 $0.51 v $0.85e; cuts FY12 guidance to below prior $3.60-3.90 v $3.56e; +4.5% after hours
- YHOO: Google's Marissa Mayer has resigned in order to become CEO of Yahoo, effective immediately; +2.1% after hours
- JBHT: Reports Q2 $0.67 v $0.67e, R$1.26B v $1.3Be; -3.7% after hours

***Fixed Income/Commodities/Forex***
- (PH) Philippines sells PHP9.0B vs PHP9.0B indicated in July 2019 Bonds; Yield 4.75%, bid-to-cover: 2.33x
- (TW) Taiwan gov't sells NT$30.0B in 5-yr Bonds; yield 0.877% v 1.029% prior
- (NZ) RBNZ will repurchase govt bonds due 2013 for liquidity management purposes
- (CN) China Ministry of Finance (MoF) to sell CNY23.1B in bonds on behalf of local governments
- USD/CNY: (CN) China NDRC Official Cao Wenlian: USD/CNY has reached equilibrium level; Need to maintain yuan stability - China Daily
- (AU) Chinese credit rating agency Dagong affirms Australia AAA sovereign rating; Stable outlook
- (KR) Korea Iron and Steel Association (KOSA): Jan-May domestic sales of steel products in South Korea fell 4.7% y/y to 23.1M tons - Korean press
- (AU) Newcastle Coal prices -3.2% w/w (1st decline in 3-weeks)
- GLD: SPDR Gold Trust ETF daily holdings fall by 3.6 tons to 1,266.1 tons (lowest level since May 22nd)

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Source: http://fxtraders.eu/article.php?id=22875

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