Week of August 28, 2011 thru September 3, 2011

ASIA FX: US Dollar Mixed, Data Help Bolster Risk Appetite

SINGAPORE, Sept. 1 (MNI) - Better risk appetite and economic data
in Asia kept the U.S. dollar trading with a mixed tone through the
morning Thursday, the U.S. currency marking small gains on the yen while
staying almost flat versus the euro.

U.S. economic data released overnight had mixed impact on dealings
and that continued as the Asian market got under way this morning.

"Key U.S. data releases overnight were generally positive helping
to sustain the equity market rally," noted United Overseas Bank
analysts.

China HSBC PMI Below 50 For Second Month As New Orders Fall

BEIJING (MNI) - HSBC said its China Purchasing Managers Index
remained below the 50 mark separating expansion from contraction for a
second straight month in August, though the headline index improved
slightly to 49.9 from July's final 49.3.

The final result was largely unchanged from the HSBC flash reading
at 49.8. The August reading also compares with 50.1 in June and May'

Update: China CFLP PMI Ticks Up To 50.9 But Exports Fall

BEIJING (MNI) - The growth momentum of China's manufacturing sector
improved slightly in August after weakening for four straight months,
even as new exports orders fell, according to data released by the China
Federation of Logistics and Purchasing (CFLP) Thursday.

China's Wen Warns On World Recovery, Inflation

BEIJING (MNI) - Wen Jiabao sounded a cautious note of optimism
about the country's economic development Thursday but warned that China
is facing a host of problems, not least a "very fragile" global recovery
and the challenge of balancing the fight against inflation with the need
to maintain steady growth.

Australia July Retail Sales +0.5% M/M, Above Forecasts

SYDNEY (MNI) - Australia's retail sales rose 0.5% month-on-month in
July, snapping two straight months of declines, and rebounding strongly
from a 0.1% fall in June, data from the Australian Bureau of Statistics
Wednesday showed.

White House: Obama To Now Address Congress On Sept 8 Not 7th

WASHINGTON (MNI) - White House announced Wednesday night that after
consulting with Speaker of the House John Boehner, President Obama
agreed to shift his address on jobs and growth before a joint-session of
Congress to September 8. Obama had initially asked to address lawmakers
on Sept. 7, which coincides with a televised debate between Republican
presidential candidates. The following is the full text of the statement
by the White House:

"Today, the President asked to address the Congress about the need

China CFLP PMI Ticks Up To 50.9 But Exports Fall

BEIJING (MNI) - The growth momentum of China's manufacturing sector
improved slightly in August after weakening for four straight months,
even as new exports orders fell, according to data released by the China
Federation of Logistics and Purchasing (CFLP) Thursday.

China PBOC Sets Dlr-Yuan Parity Higher At 6.3859; +6.73% Y/Y

BEIJING (MNI) - The People's Bank of China set the yuan's central
parity rate against the U.S. dollar at 6.3859 on Thursday, higher than
Wednesday's 6.3867.

Dlr-CNY Eur-CNY Yen-CNY

Today fixing 6.3859 9.1733 8.3031
Prev. fixing 6.3867 9.2122 8.3296
Prev. close 6.3782 -- --
%Chg since June 19* 6.92% -- --
%Chg Y/Y 6.73% -5.89% -2.63%

Brazil Copom Defies Expectations, Cuts Selic 50 bps to 12.0%

--Split Decision Cites Worsening Intl Scenario, Improved Fiscal Outlook
--Political Influence Will Likely be Suspected, Analysts Say

By Daniel Horch

SAO PAULO (MNI) - Brazil's Central Bank Monetary Policy Committee
(Copom) delivered a shocker Wednesday evening after markets had closed:
a 50 basis cut in the Selic to 12.0% from 12.5%, defying all
expectations.

Copom cited a deteriorating international scenario and an improved
fiscal outlook, while noting the lower growth forecasts improves the
inflation outlook.

Australia AI Group/PWC Manufacturing Drop Moderates In August

SYDNEY (MNI) - Manufacturing activity in Australia fell for the
second straight month in August but the pace of contraction was very
moderate compared to the big drop seen in July, the latest Australian
Industry Group/PwC performance of manufacturing index showed Thursday.