Jul 10 ,2023
Synopsis:
Asian markets set for positive start to Tuesday trade. Nikkei, ASX and Hang Seng futures all pointing to gains on the open. S&P 500 futures flat following a positive offshore session led by small caps. Asian bond markets rebounding with Aussie and New Zealand curves bull steepening. FX markets steady after dollar index fell towards a two-month low. Commodity markets little changed.
Calls for more stimulus from China's government ramping up as slowing economic growth increases deflation risks. Politburo meeting later in July will set direction for policy in H2 though recent statements from authorities have signaled little appetite other than for targeted measures. PBOC on Monday announced extension of lending support to real estate sector while central bank adviser urged greater efforts to boost consumption.
Fed officials on Monday reiterated more work needed to bring down inflation, reinforcing expectations of a 25 bp rate hike in July. SF Fed's Daly and Cleveland Fed's Mester backed Fed's median expectation of two more rate increases in 2023 though Atlanta Fed's Bostic stressed patience. Markets pricing in greater probability of two more rate hikes by end-2023, though US CPI and PPI data this week have potential to upend those expectations.
Pre-open Company News:
388.HK -- Hong Kong Exchanges & Clearing June activity
600079.CH -- NMPA approves drug registration of Humanwell Healthcare-controlled unit's febuxostat for hyperuricemia in gout patients
600236.CH -- Guangxi Guiguan Electric Power Co. reports H1 power generation 14.71B kWh, (36.0%) y/y
Japan May electronics exports ¥862.58B, (7.3%) y/y
600236.CH -- Guangxi Guiguan Electric Power Co. guides H1 net income attributable CNY863-952M vs year-ago CNY1.90B
688472.CH -- CSI Solar exercises overallotment option to issue additional 81.2M shares at CNY11.1/share
600160.CH -- Zhejiang Juhua Co. provides H1 operational data
601628.CH -- China Life Insurance reports Jan-Jun accumulated premium income of CNY470.2B, +6.9% y/y
2408.TT -- Nanya Technology reports Q2 net income (NT$771M) vs FactSet (NT$2.19B) [10 est, (NT$2.91)-(1.39B)]
4904.TT -- Far EasTone Telecommunications reports June revenue NT$7.21B, +5.1% y/y
337.HK -- Greenland Hong Kong Holdings reports Jan-June contracted sales CNY8.97B; StreetAccount notes year-ago figures was CNY8.18B
3813.HK -- Pou Sheng International (Holdings) reports June revenue CNY1.64B, (0.4%) y/y
489.HK -- Dongfeng Motor Group reports June vehicle production 155,962 vs year-ago 248,138
600886.CH -- SDIC Power Holdings reports Q2 domestic gross electricity generated 33.00B kWh, (9.0%) y/y
500483.IN -- Tata Communications acquires remaining 41.9% stake in Oasis Smart Sim Europe for $12M (INR993.0M)
On Deck:
China:
Economic:
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: M2 NSA Y/Y; consensus
Australia:
Economic:
10:30 AEST: Westpac-MI Consumer Confidence
11:30 AEST: NAB Business Confidence
Market Data:
Gold (Aug 23): ($0.20) or (0.01%) to $1930.80
WTI Crude (Aug 23): +$0.16 or +0.22% to $73.15
$-¥: (0.82) or (0.58%) to 141.2760
$-KRW: (1.44) or (0.11%) to 1297.0700
A$-$: +0.00 or +0.03% to 0.6675
$-INR: (0.13) or (0.16%) to 82.5253
$-CNY: +0.01 or +0.13% to 7.2306
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