Asia weak, US screens flat...

A/O 22:50 PST, Dow futures screens show an essentially stagnant market (unchanged)...

Japan's Nikkei average rose 0.9 percent to hit its highest close in seven weeks on Wednesday, with bank shares soaring after a report that global banking regulators are eyeing effectively delaying the implementation of new capital rules. The benchmark Nikkei 225 added 93.93 points to 10,177.41, its highest finish since October 27. The broader Topix gained 1.5 percent to 898.29, but gains were limited as investors grew cautious ahead of Wednesday's decision on interest rates from the Federal Reserve, analysts said.

Hong Kong shares fell 0.87 percent by midday, dragged down by banks, as investors fretted about further foreign fund outflows and prospects of China cooling its lending binge. The benchmark Hang Seng was down 190.36 points at 21,623.56. "The correction has already begun," said one commentator.."The market has risen more than 10,000 points without any correction...the downside risk is very high and the market will react strongly to any adverse figures. I don't believe the economy is going to revive soon." Speculation that funds will flow out of Hong Kong equities tomorrow into dollar-denominated assets, on the back of a stronger dollar, is weighing on sentiment.

Shanghai weaker as China's key stock index dipped 0.1 percent, weighed down by heavy new share supplies, while China Shipbuilding Industry made a lukewarm debut, but coal shares rose on climbing coal prices and revised cost arrangements with power producers. The Shanghai Composite ended the morning at 3,271.031 points.



T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com

Asia weak, US screen trade mixed...

A/O 00:10 PST, Dow futures screens negative, but by barely 10 points against a mixed NASDAQ & SP500.

Japan's Nikkei stock average inched down 0.2 percent on Tuesday, with Advantest Corp and other exporters hit by continued strength in the yen and as investors grew cautious ahead of a Federal Reserve meeting. But slides were countered by gains in property developers after Secured Capital Japan Co said it plans to buy a building in central Tokyo, in a deal sources said could be worth about $1.6 billion, prompting hopes for further investment in the sector. The benchmark Nikkei 225 fell 22.20 points to 10,083.48, while the broader Topix was flat at 884.63.

Shares in Hong Kong and China fell on Tuesday, pressured by property and banks, on renewed fears that China's measures to cool its red-hot real estate market could soon extend to the financial sector. By midday, the benchmark Hang Seng Index was down 0.73 percent or 162.31 points at 21,923.44. The Shanghai Composite Index ended the morning down 0.15 percent at 3,297.946 points, after rising 1.7 percent on Monday as heavily weighted oil refiners surged following news of a Dubai debt deal. In Shanghai, industry heavyweight China Vanke lost 2.46 percent to 11.50 yuan, while Poly Real Estate Group slid 2.93 percent to 23.86 yuan.

Beijing said on Monday that it would use tools including land-use policies and taxation to control property price rises, the latest indication of its concern that housing prices could rise excessively if left unchecked. China's latest move also heightened fears among investors that the government may soon implement measures to cool a lending binge to property companies, sending shares in lenders lower.

T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com

Asia weaker, Tankan neutral...

A/O 21:40 PST, Dow futures screens read +53 points as Japan's quarterly "Tankan" survey reads essentially neutral overcoming to some degree weaker Monday Asian markets.

Japan's Nikkei stock average edged down 0.2 percent on Monday, with tech shares such as Kyocera Corp losing ground even as exporters gained on a weaker yen after upbeat U.S. consumer data buoyed optimism about an economic recovery. Japan Airlines Corp jumped over 4 percent and rival All Nippon Airways also rose after the United States and Japan reached a landmark aviation agreement, a deal that eases barriers to passenger and cargo services and opens up the possibility for stronger alliances.

Japanese business morale edged up further from a record low hit earlier this year but remained negative for the sixth quarter in a row, a Bank of Japan survey showed, as the economy slowly recovers from its worst recession in six decades. Analysts said the results of the keenly-watched "tankan" were neutral for the stock market.

Hong Kong shares are set to open 1.2 percent lower on Monday as investors take profits after a strong rally in the previous session amid concerns that funds are moving out of local equities on gains in the U.S. dollar. HSBC led losses on the index, falling 2.2 percent. The benchmark Hang Seng Index was set to open down 263.14 points, at 21,638.97. The China Enterprises Index of mainland Chinese stocks was set to fall 1.33 percent.



T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com

Weekly Market & Eco-Data Preview

Week ahead: Bernanke and the buck The next week's economic reports may do little to jump-start stock buyers, or sellers. The Federal Reserve, which releases its interest-rate statement Wednesday, is expected to keep rates near zero percent and make little changes to how it characterizes the outlook for monetary policy. Fed Chairman Ben Bernanke and other policymakers have held to their mantra of holding rates for an "extended period" as they wait for more solid signs the economy is expanding fast enough to sustain job growth. Bernanke knocked back expectations the Fed could raise rates next year when he spoke Monday about the "headwinds" facing the economy. These expectations had jumped after the U.S. government said companies cut only 11,000 jobs in November. The Fed left us no doubt that they have little interest in tightening monetary policy in the near term.

On the economic calendar, the U.S. government is expected to report a rebound in industrial production in November, helped by better auto manufacturing. Plus, economists are forecasting a jump in housing starts in November as construction crews returned to work after wet weather halted activity the prior month.

Weekly jobless claims are expected to decline. And higher energy prices should propel wholesale and consumer inflation higher. See economic forecasts for next week. On Friday, economists at J.P. Morgan, Bank of America-Merrill Lynch and others raised their outlooks for fourth-quarter U.S. economic growth, citing better inventories, trade and retail data over the past week.

Earnings front
Overall, nine companies in the S&P 500 are scheduled to report results. Of particular import will be outlooks on Oracle, RIM and Palm. Investors are looking for signs companies are doing more than making profits by slashing expenses. They want to see sales growth, a sign consumer and business demand is picking up.

"For stocks, 2009 was an earnings-based story and a lot of that was cost-cutting," said Stephen Wood, chief market strategist for Russell Investments. "For 2010, the hard work will be in identifying the companies that will transition to a revenue story," he said. For the fourth quarter, analysts surveyed by Thomson Reuters anticipate operating earnings for the S&P 500 will surge 210% as financials, consumer discretionary and energy stocks rebound from tough quarters a year-ago, when the credit crisis was in full swing.

Legislative push
Healthcare and financial stocks could also see some upheaval as Congress tries to push through some landmark bills before the Christmas break. The Senate is waiting for a Congressional Budget Office analysis of a compromise reached in the past week among senior Democrats over the 10-year bill's government-run health plan. The analysis is expected in the upcoming week. And next week, the Senate may debate its own version of a financial regulation bill after House lawmakers approved the most significant increase in the regulation of U.S. banks and other corporations since the Great Depression.

TANKAN TANGO;

The Bank of Japan's closely watched quarterly tankan survey could drag on Tokyo-listed stocks early next week, as analysts expect earlier strength in the yen to weigh on the results.

The tankan results due early Monday will likely show that the diffusion index for large manufacturers -- the survey's headline number -- rose to a reading of negative 26 in the October-to-December quarter from a negative 33 in the previous quarter, according to economists at Barclays Capital.

The diffusion index measures the percentage of firms saying business conditions are good against those saying conditions are bad, with a negative reading indicating more pessimists than optimists.

Sentiment among non-manufacturers is expected to improve to negative 20 from negative 24 in the previous quarter, according to research note from economists at Barclays Capital issued last week.

Economists at HSBC forecast a rise of 8 points in the business outlook indicator for large manufacturers to a negative 25 for the December survey, with the measure for large non-manufacturers likely up by 3 points to negative 21.

In a research note, the HSBC economists said the tankan's "all-industry" capital expenditure forecast reading is likely to show expectations for a fall of 18% for the fiscal year 2009, compared with the expected drop of 17.3% reported in September. "The diffusion indices for the auto, electric machinery and retail industries should show some further improvement, although profit forecasts may be generally reduced to reflect assumptions of a stronger yen," they said.



T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com

Weekly Market Preview VIDEO

Airtime: Fri. Dec. 11 2009 3:02 PM ET
CNBC's Michelle Caruso-Cabrera looks ahead to next week's top business and financial stories.


T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com

Asia rises on US jobs trends, Chi-Coms worry about overhead supply.

UPDATE!!
A/O 01:45 PST, Dow futures screen trade showing +52 points.

A/O 22:47 PST, Dow futures screen trade showing +10 points.

Japan's Nikkei stock average rose 2.5 percent on Friday, snapping a three-day slide, as the yen retreated against the dollar and helped exporters such as TDK Corp extend gains made after improving U.S. job trends boosted Wall Street. Data showing that China's economy is on a brisk recovery path added to the overall positive tone although the figures themselves were mostly as expected, with some China-linked shares such as Hitachi Construction gaining as a result. The benchmark Nikkei225 rose 245.05 points to 10,107.87 for its second positive week in a row, while the broader Topix rose 1.7 percent to 888.57.

Hong Kong stocks rose on Friday, recovering from five straight days of losses, and Chinese stocks gained after positive November economic data pointed to a brisk economic recovery. The benchmark Hang Seng Index staged a much stronger than expected rally, rising over 2 percent to a session high of 22,143.84 before steadying at 22,063.81 at midday, still up 1.68 percent from the previous close. Anticipation that the Chinese government would aim to maintain a stable policy aided buying interest, in particular after the release of data this morning sending the blue chip index above the 20,000 mark.

Mainland Chinese stocks edged up 0.19 percent on Friday, with food and farm-related shares strong, after positive November economic data pointed to a brisk economic recovery, but pressure from heavy new share supplies limited gains…..



T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com

Rogers on Greenback...

Airtime: Thurs. Dec. 10 2009 1:28 PM ET
Legendary investor Jim Rogers makes a bold call on the U.S. dollar.


T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com

Asia remains cautious on investor angst.

UPDATE!!
A/O 05:45 PST, Dow futures screens +74 points.
A/O 04:00 PST, Dow futures screens +17 points.

Japan's Nikkei average fell 1.4 percent on Thursday after a recent sharp rebound, as credit troubles overseas weighed on investor confidence and a stronger yen pressured shares of exporters. The benchmark Nikkei 225 lost 141.90 points to 9,862.82, falling for a third day after having gained nearly 12 percent in a six-day rally to Monday. The broader Topix retreated 1.3 percent to 873.90.

Hong Kong stocks erased earlier gains, as investors dumped Chinese developers and automakers after Beijing imposed measures to cool the sectors, while debutant China Longyuan rose. The benchmark Hang Seng was down 0.76 percent, or 164.67 points, at 21,577.09 at midday. The index opened up nearly 1 percent, as investors were encouraged by China's plan to extend measures to prop up domestic spending into next year. Turnover was HK$49 billion ($6.3 billion), up from midday Wednesday's HK$39.4 billion. The China Enterprises Index of locally listed mainland stocks was down 1.12 percent at 12,754.53.

The Shanghai Composite ended the morning down 0.04 percent at 3,238.346 points, after mixed policy signals and ahead of key November economic data. China tweaked its consumption incentives to address potential market bubbles, which could dampen car and housing sales growth, although it extended certain stimulus measures that have driven car and home appliance sales to record levels.



T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com