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StreetAccount Summary - Asian Market Preview: Nikkei Futures (0.72%), Hang Seng Futures (0.37%), ASX SPI 200 (0.15%), S&P Futures +0.15%

Aug 06 ,2023

  • Synopsis:

    • Asian markets set for a weaker start to Monday trade. Nikkei, Hang Seng and ASX futures all pointing to losses on the open. S&P 500 futures nudging higher following a broadly negative week for US indices. New Zealand bonds tracking Friday's Treasury rally (no trading in Aussie bonds today). FX markets steady after dollar logged widespread declines on Friday. Commodity markets little changed.

    • Pickup in soft landing expectations, peak Fed, and BOJ YCC tweak among factors attributed for a pronounced steepening of yield curves over recent weeks. Risk-off reaction to Fitch's downgrade of US sovereign credit rating exerted initial downward pressure on yields, though Treasury Department's larger-than-expected borrowing needs has highlighted risk of growing deficits and rising interest costs further out into the future.

    • BOJ's YCC tweak has led to renewed volatility in JGB market after 10Y yield rose towards nine-year high. However, yen has been noticeably weaker with the currency hitting a one-month low against dollar. JGB yield backup has been matched by Treasury yields, keeping US-Japan rate differential little changed. BOJ has also stepped up JGB buying via unscheduled purchase operations in a bid to slow rise in yields.

    • Saudi Arabia raised oil selling prices to Asia and Europe, coming after the kingdom extended its voluntary production cut into September. Crude on the cusp of its highest level since Nov-2022 following six straight weeks of gains. At the same time supply has fallen to multi-year lows, resilient economies and services activity have prompted analysts to upgrade forecasts for global energy demand, underpinning bullish outlook for oil.

  • Pre-open Company News:

    • 605499.CH -- Eastroc Beverage (Group) reports H1 net income attributable CNY1.11B vs year-ago CNY754.6M

    • 1268.HK -- China MeiDong Auto Holdings declares final dividend CNY0.117/share

    • CLSA initiates 600872.CH, 603027.CH

    • 500325.IN -- Reliance Industries releases sustainability report

    • 532454.IN -- Bharti Airtel downgraded to hold from buy at Investec

    • 2379.TT -- Realtek Semiconductor reports July revenue NT$8.96B, (8.4%) y/y

    • U96.SP -- SembCorp Industries downgraded to accumulate from buy at Phillip Capital

    • ^TTNASIA -- Inflation data headlines the macro week ahead:

    • D05.SP -- DBS Group Holdings upgraded to neutral from sell at Goldman Sachs

    • 011780.KS -- Kumho Petrochemical Co. upgraded to buy from market perform at Kiwoom Securities

    • CC3.SP -- StarHub upgraded to accumulate from neutral at Phillip Capital

    • 2500.HK -- Venus Medtech's VenusP-Valve obtains FDA IDE approval

    • 7011.JP -- Mitsubishi Heavy Industries downgraded to outperform from buy at CLSA

    • 9877.HK -- The first fee-for-service compassionate use treatment with LuX-Valve Plus in the Asia-Pacific region completed

    • 543904.IN -- Mankind Pharma downgraded to neutral from overweight at JPMorgan

  • On Deck:

    • China:

      • Economic:

        • 16:00 CST: FX Reserves; consensus +$3216B

      • Earnings:

        • Eastroc Beverage (Group) (605499.CH)

    • Hong Kong:

      • Earnings:

        • CLP Holdings (2.HK), FIT Hon Teng (6088.HK), Q Technology (Group) (1478.HK), Wharf Real Estate Investment (1997.HK)

    • Japan:

      • Economic:

        • 08:50 JST: FX Reserves M/M; consensus

        • 14:00 JST: Leading Index (Preliminary); consensus

      • Earnings:

        • Sumitomo Metal Mining (5713.JP), Toshiba (6502.JP), KATITAS (8919.JP), Maruha Nichiro (1333.JP), COMSYS Holdings (1721.JP), TAISEI (1801.JP), Obayashi (1802.JP), Daiwa House Industry Co. (1925.JP), Toyobo Co. (3101.JP), Unitika (3103.JP), Tokyu Fudosan (3289.JP), Teijin (3401.JP), Oji (3861.JP), Nippon Paper Industries Co. (3863.JP), Denka Co. (4061.JP), Noevir Holdings (4928.JP), The Japan Steel Works (5631.JP), TechnoPro Holdings (6028.JP), Sumitomo Heavy Industries (6302.JP), Sumitomo Heavy Industries (6302.JP), Lasertec (6920.JP), Tokio Marine Holdings (8766.JP)

    • South Korea:

      • Earnings:

        • CJ Logistics (000120.KS), KT (030200.KS), LG Uplus (032640.KS), KOREA AEROSPACE INDUSTRIES (047810.KS), HYBE Co. (352820.KS)

    • Australia:

      • Earnings:

        • Charter Hall Long WALE REIT (CLW.AU), Coronado Global Resources (CRN.AU), James Hardie Industries (JHX.AU)

    • India:

      • Earnings:

        • Gland Pharma (543245.IN), Godrej Consumer Products (532424.IN), Max Healthcare Institute (543220.IN)

    • Indonesia:

      • Economic:

        • 11:00 SAST: GDP NSA Y/Y; consensus +4.8%

    • Singapore:

      • Earnings:

        • Delfi (P34.SP), PARAGON REIT (SK6U.SP)

    • Thailand:

      • Economic:

        • 07:00 SAST: CPI NSA Y/Y; consensus +0.6%

      • Earnings:

        • Advanced Info Service Public (ADVANC.TB), Thai Union Group Public (TU.TB)

    • Philippines:

      • Earnings:

        • Semirara Mining & Power (SCC.PM)

  • Market Data:

    • Gold (Dec 23): +$1.70 or +0.09% to $1977.80

    • WTI Crude (Sep 23): +$0.10 or +0.12% to $82.92

    • $-¥: +0.16 or +0.12% to 141.8920

    • $-KRW: (1.15) or (0.09%) to 1303.0400

    • A$-$: (0.00) or (0.02%) to 0.6571

    • $-INR: (0.02) or (0.02%) to 82.6765

    • $-CNY: (0.03) or (0.43%) to 7.1401

  • If you would like to receive the Asian Market Preview daily, search for Asia Pre-Market Updates in Alert Manager.

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