Flat start for Asian stocks; Warren Buffett to visit Japan

<p>Asian stocks are set for a flat start to the week with little excitement over the weekend to break the sluggish trading range for regional […]</p>

Asian stocks are set for a flat start to the week with little excitement over the weekend to break the sluggish trading range for regional equities.
With the absence of any big, good news around European debt or U.S. jobs, the focus now turns to the most important event of the week – the November 23 deadline for the U.S. Super committee to agree on deficit cutting measures. The absence of any deal before the deadline will further irritate traders and see weakness across equities, even if fundamentally good news does emerge.
It’s unclear just how much equities will underperform ahead of an agreement but it seems like risk assets aren’t going to get much traction until a deal is sealed.
The AUD/USD continued its downward spiral, last trading below parity at 99.98 cents. We think the currency pair is now trading in a range will should see downside at around 98.63 and upside at the 20 day moving average of 103.00.
In Australian corporate news, national airline carrier Qantas will today see its negotiating period with three unions come to an end and if there is no deal reached, the matter will go to arbitration with the relevant government body.
Manufacturer OneSteel is threatening to walk away from its steel manufacturing businesses in Whyalla. The share price is still below $1, will be interesting to see how the market will interpret the likelihood of exiting a non-profitable business.
Elsewhere in the region, Warren Buffett is due to visit Japan today as part of an investment seeking venture, with stops planned at a Japanese manufacturing plant. The visit may indicate Berkshire’s appetite for more regional assets, particularly given depressed share prices post Fukushima and the more recent Thailand natural disaster.

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