News Headline Summary

ASIA-PACIFIC MID-SESSION UPDATE - 07/12/12

The Asian morning session has been quiet so far, lacking of crucial data on the calendar and market-moving news flow. Despite opening flat across Asian, all stock indices are now trading in positive territory. The movement also comes with WTI (USD 86.48) and spot gold (USD 1703.65) green on the session, which has also stabilized the commodity linked currencies such as AUD.

The ASX 200 has been today’s notable outperformer as the Australian Financial Review reported that the Gillard’s government is preparing to dump its commitment to a budget surplus if economic growth slips below its long-term average in the current quarter. Meanwhile, we heard market talk saying that the index is also supported by a regional buy-portfolio in real estate investment trusts with Australand Property Group (+4.5%) leading the sector, which helps to drive the ASX 200 to hit a six-week high.

Once again, the Shanghai Comp is being led by the Construction and Cement stocks which were aided by the news reported in Shanghai Securities Journal saying Sichuan province is to invest CNY 2trl in urbanization in 2012 after China’s Politoburo discussed the urbanization reform earlier.

In terms of data releases, Australian Trade Balance for October printed better than expectations while no reaction was observed in AUD/USD. Please note, US Non-farm payroll data, which will be released tomorrow, is the main risk event remaining this week and focus will be firmly on this data during the European and the US session.

The calendar for the rest of the day remains on the light-side with a lack of tier-1 macroeconomic data although the preliminary reading of Japanese Leading Index CI for October is due to be released at 0500GMT/2300CST.

As of 0238 GMT:
ASX200 (+0.93 %), Nikkei 225 (+0.20%), Shanghai Comp. (+1.11%), Hang Seng (+0.45%), KOSPI (+0.47%)

07 Dec 2012 - 02:43 - Equities Data - Source: RANsquawk

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