ECONOMIC DATA

- (AU) AUSTRALIA Q3 PRIVATE CAPITAL EXPENDITURE: -3.9% V 1.0%E (prior revised to 2.1% from 3.3%); Building CAPEX -4.8% q/q, plant/machinery CAPEX -2.9% q/q; In 09/10, Australian companies plan to spend A$105B vs prior est A$90.6B.

- (NZ) NEW ZEALAND NOV NBNZ BUSINESS CONFIDENCE: 43.4 V 48.2 PRIOR; Outlook: 33.7% v 30.5% prior

- (PH) Philippines Q3 GDP Q/Q: 1.0% v 1.3%e; Y/Y: 0.8% v 1.9%e

- (JP) In terms of the Bank of Japan's Oct 30 monetary policy meeting minutes the central bank said it would keep the financial environment accommodative and the board agreed to keep rates at the current level for some time. Also, the BoJ agreed to resume its collateralized lending if necessary. Many BoJ members said there was a need to watch downside risks on prices if inflation expectations decline. Also, many members warned about the weaker US economy. Some members said there was a need to watch corporate funding concerns toward the end of the fiscal year. Also some members said domestic prices could rise if emerging markets overheat. One BoJ member said the central bank should consider extending its low interest rate loans beyond April if necessary.


SPEAKERS

- New Zealand Finance Minster English said the government planned to announce its economic and fiscal forecasts on Dec 15 and that the fiscal update would confirm the impact of the recession.

- Philippines President Arroyo noted the weak dollar is bad for the country.

- The Bank of Korea set its 2010-12 mid-term inflation target at 2.0-4.0% vs. the 2.5-3.5% target set in 2007-09.

After it was disclosed that Sri Lanka bought approximately 10 metric tons of gold from the IMF, the country's central bank said the gold purchase was part of its plan to diversify its reserves. Also, the Sri Lanka Central Bank said it is a good time to buy gold.

- In Thailand, Finance Minister Korn said the recent decision by Vietnam to devalue the dong would not impact Thailand's policies. Korn added that the weaker dong might hurt Thailand's competitiveness.


EQUITIES

- The Nikkei 225 has traded lower for most of the session and is near 4-month lows, as the stronger yen has weighed down the technology and auto sectors. Earlier during the session, the Nikkei 225 traded below its 200-day moving average for the first time since May, before rebounding. Australia's S&P ASX 200 is lower on the weakness in the financial sector.
Shares of miner BHP are higher by more than 0.50% as the company holds its annual meeting. BHP's CEO Kloppers was quoted as saying he expected the global recovery to be sluggish, but that he is surprised by the velocity of China' s recovery, along with the resilience of the Chinese steel sector. Kloppers added that inventory levels are elevated and commodity prices are much more linked to currencies than demand. Furthermore, BHP reaffirmed its committed to the proposed iron-ore jv with Rio Tinto, while BHP declined to comment on speculation that the company might bid for Rio Tinto. The Shanghai Composite is declining by more than 1% on broad-based selling, while Hong Kong's Hang Seng is being weighed down by the weakness in the retail sector and declines in recent IPO China Minsheng Banking. Taiwan's Taiex has moved off of the session's best levels as weakness in the financial sector offset gains in shares of AU Optronics. South Korea's Kospi has reversed most of the gains seen earlier during the session on the losses in financials.


CURRENCIES/COMMODITIES

- The main story on today's forex session is the move in USD/JPY to fresh 14 year lows below 87. The decline in the pair, has pushed all of the yen crosses lower by at least 0.90%. The decline in the dollar against the yen also caused the dollar index to move to a 15 month low. The move in USD/JPY below 87 came as Japan's Finance Minister Fujii said he would examine if forex moves are abnormal and that he was watching currency moves for now. Additionally, Ministry of Finance Official Noda said the government was not considering currency intervention currently. Despite the weakness in USD/JPY, the USD has traded firmer against the EUR, GBP and commodity currencies on the weakness in equities. However, USD/CHF moved to a 1.5 year low below parity, as EUR/CHF traded below 1.5070 for the first time since late June.

- In commodities, crude oil prices are lower by more than 0.50% and trading below $77.50/bbl on the weakness in the commodity currencies against the dollar and yen. During yesterday's US session, oil rose by more than 2.5% on the weaker dollar and Department of Energy weekly crude inventories data (DOE CRUDE: +1.02M V +1.5ME). Spot Gold has moved to a fresh record high above $1,195/oz, while Indian gold hit an all-time high near INR17,844/gram. In terms of physical demand for gold, the SPDR Gold Trust ETF increased its holdings for the 3rd consecutive session.