Asian Summary: Stocks Mixed; Spain Bailout Uncertainty

ASIAN SUMMARY: Regional equities are mixed on continued uncertainty over a bailout for Spain after Prime Minister Rajoy dispelled speculation that a request for one was imminent. The Nikkei is off 0.4%, the S&P/ASX rises 0.1%, the Taiex falls 0.4%, the STI declines 0.3%, the Sensex adds 0.2%, and the HSI rises 0.1%. In FX markets, the euro is lower against the greenback after Spain's leader deflated hopes that the nation was going to ask for a bailout package soon. The EUR/USD is at 1.2901 from 1.2920 late Tuesday in New York, the EUR/JPY is at 100.90 from 100.99, and the USD/JPY is at 78.20 from 78.16. In an update to its Asian Development Outlook, the ADB forecasts gross GDP in developing Asia to expand 6.1% in 2012, vs a 6.9% growth it projected in April, and 6.7% in 2013, versus 7.3% in its earlier report.

Australia posts an August seasonally-adjusted trade deficit of A$2.027 billion vs July's upwardly revised A$1.530 billion deficit, a A$685 million deficit tipped. The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index falls 0.5 points to 41.9, well below the 50 point mark that separates contraction from growth. Thailand's September consumer confidence index drops to 77.0 from August's 77.9 due to worries over the global economic slowdown, the rising cost of living and ongoing floods in several provinces. Spot gold is at $1,774.70/oz, down 30 cents from the NY close. November Nymex crude oil futures are down 12 cents at $91.77/bbl.