Jul 18 ,2023
Synopsis:
Asian markets set for a mixed start to Wednesday trade. Nikkei and ASX futures pointing to gains on the open while Hang Seng futures lower after Nasdaq Golden Dragon index fell 3.3%. S&P 500 futures flat afterhours. Asia bond markets mixed with New Zealand curve bear flattening following CPI data. Kiwi strengthening against other currencies. Commodities steady with crude holding near overnight highs.
China market sentiment weighed down this week by soft Q2 and June economic data. While there have been calls for a meaningful policy response, latest update from NDRC underwhelmed after state planner rehashed existing pledges to boost consumption. Focus very much on upcoming Politburo meeting for policy guidance, and some economists continue to expect further RRR and interest rate cuts.
Speaking at G20 news conference, BOJ Governor Ueda said still some distance to sustainably and stably achieving 2% inflation target. Remarks come amid lingering speculation BOJ could tweak YCC as soon as July meeting, coinciding with an upgrade to CPI forecasts. Attention is on Friday's nationwide CPI data for June, which is expected to show core inflation edging higher, largely on the back of higher electricity prices. Inflation ex-food and energy seen hovering near 42-year high.
Quiet session in terms of economic data. New Zealand Q2 inflation came in just above consensus forecasts. However, result driven largely by higher food prices as household building inflation moderated. Headline result also below RBNZ's May forecast, suggesting limited implications for monetary policy. Separately, Reuters Tankan showed Japan manufacturer sentiment fell for first time in six months amid weakening global demand.
Pre-open Company News:
2020.HK -- ANTA Sports Products reports Q2 operational update
601699.CH -- Shanxi regulators ask Lu'An Environmental Energy to suspend operations at mine
532134.IN -- Bank of Baroda releases sustainability report
540133.IN -- ICICI Prudential Life Insurance reports Q1 standalone EPS INR1.44 vs FactSet INR2.16 [4 est, INR1.71-2.50]
500180.IN -- HDFC Bank resumed buy at Systematix Institutional Research (timing uncertain)
806.HK -- Value Partners Group reports unaudited AUM of US$6.0B as at 30-Jun
600521.CH -- FDA approves Zhejiang Huahai Pharmaceutical's ANDA for bisoprolol fumarate for hypertension
000069.CH -- Shenzhen Overseas Chinese Town reports Jan-Jun contracted sales CNY22.77B, (16%) y/y
^ESG -- StreetAccount ESG Headlines (18-Jul)
3993.HK -- CMOC Group discloses details of Tenke Fungurume Mining's settlement with Gécamines
539254.IN -- Adani Transmission reports Q1 provisional operational update; unit sales +7.6% y/y
1798.HK -- China Datang Corp. Renewable Power reports June power generation 2.1M MWh, +5.9% y/y
3339.HK -- Lonking Holdings guides H1 net income CNY282-382M, +91-158% y/y
600872.CH -- General manager Li Cuixu resigns from Jonjee Hi-Tech Industrial & Commercial Holding for personal reasons
540115.IN -- L&T Technology Services reports Q1 consolidated EPS INR29.38 vs FactSet INR29.59 [11 est, INR28.20-31.70]
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
Hong Kong:
Earnings:
Xtep International Holdings (1368.HK), Xtep International Holdings (1368.HK), NagaCorp (3918.HK)
Australia:
Earnings:
Woodside Energy Group (WDS.AU)
India:
Earnings:
Tata Communications (500483.IN)
Singapore:
Earnings:
Sabana Industrial Real Estate Investment Trust (M1GU.SP)
Market Data:
Gold (Aug 23): +$0.80 or +0.04% to $1981.60
WTI Crude (Aug 23): +$0.04 or +0.05% to $75.79
$-¥: +0.46 or +0.33% to 139.1660
$-KRW: (0.76) or (0.06%) to 1263.3100
A$-$: (0.00) or (0.07%) to 0.6812
$-INR: +0.00 or +0.01% to 82.0754
$-CNY: +0.01 or +0.10% to 7.1793
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