- In terms of economic data, the Japanese government released July employment, spending and inflation data. On the inflation front, Japan's CPI extended its decline [JAPAN JUL NATIONAL CPI Y/Y: -2.2% V -2.2%E (-1.8% PRIOR); CORE:-2.2 % V -2.2%E (-1.7% PRIOR)], adding to the signs of deflation appearing in the country. In July, both Japan's core and headline CPI moved to record lows. Looking ahead, the Aug Tokyo core CPI declined by 1.9% versus the prior decline of 1.7%. In the Japanese labor market, the July jobless rate rose to a record high, as the number of jobs per applicant declined (JAPAN JUL JOBLESS RATE: 5.7% V 5.5%E; JOB-TO-APPLICANT: 0.42 V 0.43E). The weaker Japanese employment situation has filtered into consumption, as evidenced by the fact that July household spending declined to the lowest level on record (JAPAN JUL HOUSEHOLD SPENDING Y/Y: -2.0% V -0.5%E).

- At the time of writing, the Japanese yen is declining across the board, as the currency has been weighed down by local economic data. However, the downside for the yen has been capped, by the equity declines being seen in China. The USD is weaker against both the CHF and EUR, with EUR/USD trading in the 1.4350 area. However, the pound is declining against the dollar. Additionally, the pound is weaker against the EUR, ahead of the upcoming UK GDP data. In terms of the commodity currencies, AUD/USD is little changed, while the dollar is marginally firmer against the NZD and CAD.

- In equities, Asian stocks are trading mixed, with most technology names being supported by better than expected earnings from US computer maker Dell. At the morning break, the Shanghai Composite is lower by more than 2.3%, led by declines in shares of financials and oil and gas companies. The Nikkei 225 is higher by more than 0.10%, but off of its best levels as markets continue to focus on the trading of stocks in China. The best performing sectors on the Nikkei include technology companies and financials, while the worst performing sector is telecommunications. South Korea's Kospi is higher led by gains in shares of consumer , technology and health care companies. In Australia, the S&P ASX 200 is gaining by more than 0.40%, led by health care and utilities companies. The Hang Seng is declining by more than 0.20%, tracking the weakness in Chinese equities. In Taiwan, the Taiex is gaining by more than 1%, led by technology and financial shares.

- Crude oil prices are higher and trading above $72.40/bbl, after rising by more than 1% in NY floor trading. Spot Gold is higher on the session and has so far ranged between $951/oz and $948. During the NY COMEX session, gold prices rose by more than $1.00. Shanghai Copper prices have moved higher by as much as 2.6%, ahead of the upcoming weekly Shanghai Futures Exchange inventories data. (Note: All quotes are as of 00:42 EST)