- (JP) JAPAN Q2 TANKAN LARGE MANUFACTURERS INDEX: -9 V -7E (lowest level since Q1 2010); OUTLOOK: 2 V 2E; NON-MANUFACTURING: -5 V -4E (lowest since Q1 of 2010); OUTLOOK: -2 V 0E; LARGE ALL INDUSTRIAL CAPEX: 4.2% V 2.4%E - (JP) JAPAN MAY JOBLESS RATE: 4.5% V 4.8%E (lowest since Feb 2009); JOB-TO-APPLICANT RATIO: 0.61 V 0.60E - (CH) CHINA JUN HSBC MANUFACTURING PMI: 50.1 V 51.6 PRIOR; lowest reading in 11 months - (AU) AUSTRALIA MAY HIA NEW HOME SALES M/M: -0.2% V 0.2% PRIOR (5-month low) - (JP) JAPAN MAY NATIONAL CPI Y/Y: 0.3% V 0.2%E; CORE Y/Y: 0.6% V 0.5%E; JUN TOKYO CPI Y/Y: -0.2% V -0.1%E; TOKYO CORE CPI Y/Y: 0.1% V 0.2%E (3rd consecutive month of positive data) - (JP) JAPAN MAY OVERALL HOUSEHOLD SPENDING Y/Y: -1.9% V -1.7%E (3-month high) - (AU) AUSTRALIA JUN AIG PERFORMANCE OF MANUFACTURING INDEX: 52.9 V 47.7 PRIOR (first expansion in 4 months; 11-month high) - (KS) SOUTH KOREA JUN CONSUMER PRICE INDEX (CPI) M/M: 0.2% V 0.2%E; Y/Y: 4.4% V 4.3%E; CORE CPI Y/Y: 3.7% V 3.5% PRIOR (highest since 2009) - (TT) TAIWAN JUN HSBC TAIWAN MANUFACTURING PMI: 49.9 V 54.9 PRIOR (1st contraction in 8 months) - (KS) SOUTH KOREA JUN HSBC MANUFACTURING PMI: 51.1 V 51.2 PRIOR - (KS) SOUTH KOREA JUN TRADE BALANCE: $3.3B V $2.8BE - (TH) THAILAND JUN CPI Y/Y: 4.1% V 4.2%E; CORE Y/Y: 2.6% V 2.7%E - (RU) RUSSIA JUNE HSBC PMI MANUFACTURING M/M: 50.6 V 50.7 PRIOR; lowest reading since Mar 2010 - (ID) INDONESIA MAY TOTAL TRADE BALANCE: $3.5B V $2.3BE - (ID) INDONESIA JUN INFLATION NSA M/M: 0.6% V 0.4%E; Y/Y: 5.5% V 5.4%E; CORE INFLATION Y/Y: 4.6% V 4.7%E - (CO) Colombia Q1 Current account y/y: -$1.98B v $1.27B Markets Snapshot (as of 04:30GMT) - Nikkei225 +0.5% - S&P/ASX -0.3% - Kospi +1.4% - Taiex +1.0% - Shanghai Composite +0.4% - Hang Seng +1.5% - Straits Times Index +0.6% - S&P Futures -0.1% at 1,314 - Spot Gold +0.1% at $1,500/oz - Aug Crude -0.8% at $94.68 - Sept Copper -0.7% at $4.25 Overview/Top Headlines - Trading today was positive with only Australia trading down 0.5% after China data showed a confirmed slowdown. With the Greek crisis in its final stages of resolve, attention will turn to the US's inability to reach an agreement to raise the debt ceiling. Lawmakers have been ordered to spend the holiday weekend sorting it out. Shanghai spent its second day in a row in positive territory up 0.3% at its peak. Taiwan and Korea both gained over 1%. Currencies were quiet with euro, pound gaining 0.2% against the dollar and the yen lost 0.2% against the dollar. NZD lost 0.2% after breeching fresh post flotation highs yesterday. Crude fell almost 1% to a low of $94.53. USDA commodity report sent corn and wheat into losses, with corn falling over 6%, Copper fell to a low of $4.25 and silver lost 0.9% to $34.53. - China's slowdown appears to be a real reality as another round of softer data hit the markets today. June HSBC Manufacturing came in at the lowest reading in 11-months at 50.1 v 51.6 prior, which is just barely in expansion territory. The June PMI Manufacturing came in at the lowest level since Feb 2009 at 50.9 v 51.5e, like non-manufacturing it is expansionary but barely. AUD/USD fell to session low below $1.0685 on the news. All components of the PMI came in at multi-month lows with imports showing the first contraction in 9-months. China Securities Journal reported that the PBoC will be cautious on raising the reserve ratio requirement (RRR) further. Reminder, the PBoC has raised RRR a total of twelve times since 2010 for a cumulative total of 600bps.The RRR was raised six times already in 2011 (once every month). - Japan May jobless rate fell to Feb 2009 lows at 4.5% v 4.8%e, USD/JPY spent the session in a 30 pip range despite the much anticipated Tankan survey. Large manufacturers index at -9 v -7e was the lowest level since Q1 2010. Japan Chief Cabinet Sec Edano: Tankan reflects manufacturers are recovering faster than expected. - Australia May new home sales fell 0.2% m/m v +0.2% prior, this was a 5-month low. Australia's two rare earth miners had opposite days with Arafura gained over 4% on the news that it was acquiring land for a processing facility while the darling Lynas Corp lost almost 10% after yesterday's report that it would need to make some additional changes at its plant in Malaysia before it could be reviewed for final approval. Speakers/Geopolitical/In the press - (JP) Japan Econ Min Yosano: Negative print in Tankan sentiment is transitory; Economy will recover toward the end of the year - (HK) According to HKMA, slower loan growth is expected in H2 of this year - Hong Kong press Equities - TM: CFO: Aiming to improve annual FY op profit to ¥1T from last year's ¥468.2B through cost reduction - Nikkei News interview - VALE: Announces $3B share repurchase plan (5.9% of shares outstanding); Approves delisting plan for fertilizer unit - financial press - Bank of China, 3988.HK: President: No plans to acquire Lloyds Bank assets - Chinese Press US Equities - DNDN: Medicare (CMS) grants national coverage on Provenge cancer treatment; improves healthcare outcomes; there is adequate evidence that it is a reasonable and necessary treatment for prostate cancer; +3.7% after hours - RIMM: Responds to unsigned executive memo that was earlier critical of the company; Mgmt is addressing its problems - CNBC; -1.1% after hours

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