Asian stocks don't buy into lackluster Wall Street session

Forex: The currency market mostly tracked rising oil prices during the Asian session, but moves were limited in quiet conditions and an empty economic calendar. The USD continues to consolidate its recent gains, but it seems the overall sentiment remains USD positive. For EUR/USD, chartists say 1.4800 is emerging as the key level to watch in the near-term. Unless EUR/USD can take out 1.4800 and maintain that level, the bias is very much to the down side. In the meantime, every EUR rally is still seen as a selling opportunity. USD/JPY looked heavy throughout the session, with bids seen around 109.50/60. On the upside, option barriers are seen at 110.75, limiting progress. Some analysts continue to argue that the AUD/USD selling has been overdone, with 0.8795 emerging as a pivotal level.

Japan's exports rise more than expected in July, despite U.S. slowdown: (JP JULY MERCHANDISE TRADE BALANCE: ?91.1B V ?257.5B expected, ?121.9B prior; ADJUSTED: ?172.4B V ?351B expected, ?135.4B prior) Japan's exports rose 8.1% on a y/y basis, above a median forecast for a 5.6% increase, while imports gained 18.2% on a y/y basis, higher than the expected 12.9% rise. Exports to the U.S. fell -11.5% y/y during July, marking the 10th consecutive month of y/y declines. In a notable development, Japanese exports to China excluding Hong Kong and Macao topped exports to the U.S. for the first time since World War. "But taking the June and July numbers together, it can be said that exports are in a gradual slowdown," said Yoshiki Shinke at Dai-Ichi Life.

Equities: At 23:55 EDT Japan's Nikkei is -0.82%, the S&P/ASX200 is -0.90%, South Korea's KOSPI is -1.42%, Hong Kong's Hang Seng index is -1.47%, and the Shanghai composite index is -2.63%. The S&P500 futures contract lost -0.33% since the U.S. close, last trading at 1,269.60. Asian stocks didn't buy into Wall Street's lackluster session, and most regional bourses are trading lower. Exporters and financials dragged on the Nikkei225, with the benchmark currently trading below 12,800. Worse than expected earnings results from Babcock & Brown, Healthscope and Wesfarmers soured sentiment in Sydney, with the S&P/ASX200 dipping below 4,900. Technology stocks generally traded lower in Seoul, while Shanghai-listed stocks retraced yesterday's rally. Chinese investors doubt rumors a near-term fiscal stimulus package from Beijing, with several analysts arguing that the country's financial sector is in relatively good shape.

Commodities: Nymex crude oil gained by 0.72% between 18:00 EDT and 23:59 EDT, last trading at $116.39/bbl. Some analysts suggest that today's oil rebound had a lot to do with technical trading. Stephen Schork, who writes the Schork Report, pointed out that the September futures contract expired at the end of the session, and some traders who had been "short" may have been waiting to cover their positions. Gold tracked crude higher, gaining 0.69%, last trading at $821.90/oz.