Aug 10 ,2023
Synopsis:
Asian markets set for mixed start to Friday trade. Nikkei and ASX futures signaling mild losses on the open. Hang Seng futures higher after Alibaba (BABA) staged post-earnings rally on NYSE overnight. S&P 500 futures up marginally afterhours. FX markets steady after dollar rebounded from post-CPI lows. Yen nearing lowest level since Nov-2022. Oil touched fresh nine-month high before pulling back. Copper led base metals lower.
US CPI data largely supported disinflation narrative and led markets to reduce already low probability of further Fed rate hikes. However, some press takes noted disinflation path likely to be bumpy. Reacceleration of Fed's preferred core services inflation gauge signaled underlying stickiness. Others highlighted risk of pass-through to goods prices from recent resurgence of energy and food prices.
Country Garden reported sharp drop in sales as it faces mounting liquidity pressures. Comes after Moody's downgraded its credit rating to Caa1 from B1 following missed coupon payments this week. Other developers also contending with liquidity pressures, helping to drive China junk dollar bonds to lowest since Dec-2022. Contagion fears increasing calls for authorities to provide more support. Bloomberg noted CSRC's corporate bond division to meet with property firms today.
In other developments, Alibaba reported consumer-driven revenue beat while bottom-line beat aided by cost cuts. China bonds experienced first net monthly inflow from foreign investors this year according to IIF. Other EM bond funds also saw foreign inflows last month. Japan PM Kishida planning subsidies for firms to aid dependent spouses. New Zealand food prices fell for first time since Nov-2021.
Pre-open Company News:
517334.IN -- Samvardhana Motherson International reports Q1 consolidated EPS INR0.89 vs FactSet INR0.85 [3 est, INR0.45-1.10]
S63.SP -- Singapore Technologies Engineering sells 11 narrowbody aircraft to Keystone Holdings; terms not disclosed
002064.CH -- Huafon Chemical reports H1 net income attributable CNY1.36B vs guidance CNY1.25-1.38B
CPALL.TB -- CP All Public reports Q2 net income attributable THB4.44B vs FactSet THB3.80B [14 est, THB3.21-4.16B]
BEM.TB -- Bangkok Expressway & Metro Public reports Q2 net income attributable THB900.7M vs FactSet THB912.6M [6 est, THB884-1.02B]
512.HK -- Grand Pharmaceutical Group reports H1 net income attributable HK$1.03B, +45% vs year-ago HK$710.4M
500182.IN -- Hero MotoCorp reports Q1 standalone EPS INR41.23 vs FactSet INR44.96 [8 est, INR38.48-48.70]
BWAQU -- Vietnam Sunergy Cell Company announces business combination with Blue World Acquisition Corporation (pre-open)
JMART.TB -- Jaymart Group Holdings Public Co. reports Q2 net income attributable (THB611.2M) vs year-ago THB389.4M
2207.TT -- Hotai Motor reports H1 EPS NT$21.74; StreetAccount notes year-ago figure was NT$6.37
2412.TT -- Chunghwa Telecom reports July revenue NT$17.52B; StreetAccount notes year-ago NT$17.18B
2615.TT -- Wan Hai Lines reports July revenue NT$8.24B, (65.6%) y/y
2912.TT -- President Chain Store reports July revenue NT$27.90B, +9.3% y/y
817.HK -- China Jinmao Holdings Group reports July contracted sales CNY6.37B vs year-ago CNY10.50B
S59.SP -- SIA Engineering completes acquisition of 49% stake in Pos Malaysia subsidiary Pos Aviation Engineering Services; deal announced 13-Feb-20
On Deck:
China:
Economic:
08:00 CST: M2 NSA Y/Y; consensus
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: New Yuan Loans; consensus
Hong Kong:
Earnings:
China Everbright Greentech (1257.HK), Pou Sheng International (Holdings) (3813.HK), Yue Yuen Industrial (Holdings) (551.HK), Value Partners Group (806.HK)
South Korea:
Earnings:
Mirae Asset Securities Co. (006800.KS), Korea Electric Power (015760.KS)
Australia:
Earnings:
Newcrest Mining (NCM.AU), Charter Hall Social Infrastructure REIT (CQE.AU), Viva Leisure (VVA.AU)
India:
Earnings:
ABB India (500002.IN), Patanjali Foods (500368.IN), Zydus Lifesciences (532321.IN), Hindustan Aeronautics (541154.IN), Oil & Natural Gas (500312.IN), Power Finance (532810.IN), Voltas (500575.IN)
Malaysia:
Economic:
00:00 EST: GDP NSA Y/Y; consensus +3.5%
00:00 EST: Current Account; consensus +MYR5.9B
Singapore:
Earnings:
Sasseur REIT (CRPU.SP), Singapore Technologies Engineering (S63.SP), CapitaLand Investment (9CI.SP), Bumitama Agri (P8Z.SP), Olam Group (VC2.SP), Vicom (WJP.SP), SIIC Environment Holdings (BHK.SP), EC World Real Estate Investment Trust (BWCU.SP), Wilmar International (F34.SP), Haw Par Corp. (H02.SP), Hong Leong Asia (H22.SP)
Taiwan:
Earnings:
ASUSTek Computer (2357.TT)
Thailand:
Earnings:
Chularat Hospital PCL (CHG.TB), Indorama Ventures Public (IVL.TB), Electricity Generating Public (EGCO.TB), Bangkok Dusit Medical Services Public (BDMS.TB)
Philippines:
Earnings:
Ayala Corp (AC.PM), JG Summit Holdings (JGS.PM), LT Group (LTG.PM)
Market Data:
Gold (Dec 23): ($4.20) or (0.22%) to $1944.70
WTI Crude (Sep 23): +$0.04 or +0.05% to $82.86
$-¥: +1.09 or +0.76% to 144.8170
$-KRW: +3.74 or +0.28% to 1317.6600
A$-$: (0.00) or (0.22%) to 0.6517
$-INR: (0.02) or (0.02%) to 82.9058
$-CNY: +0.01 or +0.08% to 7.2148
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