Aug 21 ,2023
Synopsis:
Asia equities poised to open moderately higher Tuesday. Futures in Japan, Hong Kong, and Australia traded firmer. US contracts were marginally softer, retracing some of the cash session gains. Semis were a bright spot with positive leads from Nasdaq outperformance alongside gains Nasdaq Golden Dragon China Index and SOX. Treasuries were weaker across the curve with 10-year yield hitting 4.35%, highest since 2007. Dollar finished US session better vs yen but a bit weaker vs euro. Gold settled up 0.3%, WTI crude down 0.7%.
Higher bond yields attracted much of the attention. Momentum broadly attributed to recent signs of a better US growth backdrop and skepticism that Fed Chair Powell will offer an explicit peak signal in Friday's Jackson Hole conference. Powell seen likely to reiterate policy not on a set path, Fed remains data dependent and decisions will be made on a meeting-by-meeting basis. On tech strength, upcoming NVDA earnings pitched as a key litmus test, particularly after stock price gains of nearly 300% YTD and better-than-expected Q1 earnings included blowout guidance for Q2.
Asia news flow remains light, leaving China macro as the primary regional focus. Takeaways from less-than-expected LPR cuts reaffirmed views of PBOC's reluctance to ease policy more aggressively, adding that authorities are mindful of commercial bank's NIM compression as well as yuan weakness. Mainland analysts leaned on PBOC's earlier pledge to strengthen financial support. Press continued to monitor analyst downgrades to China GDP/earnings forecasts. Elsewhere, Arm filed for an IPO which could be launched as early as next month.
Pre-open Company News:
762.HK -- China Unicom (Hong Kong) reports July operational statistics: "Big Connectivity" subscribers 936.5M vs month-ago 927.9M
002410.CH -- Glodon reports H1 net income attributable CNY248.2M, (37%) vs year-ago CNY396.9M
2899.HK -- Zijin Mining Group affiliate Zilong Mining to acquire 48.6% stake in Zhonghui Industrial for CNY1.65B
2148.HK -- Vesync reports H1 net income attributable $32.6M, +110% vs year-ago $15.5M
BH.TB -- Bumrungrad Hospital Public Co. initiated outperform at Macquarie
6606.HK -- New Horizon Health reports H1 adjusted net income CNY61.3M vs guidance of more than CNY45M
2208.HK -- Goldwind Science & Technology Co. reports H1 net income attributable CNY1.25B vs year-ago CNY1.92B
1909.HK -- Fire Rock Holdings reports H1 net income attributable HK$586.4M vs year-ago HK$20.4M
539437.IN -- IDFC First Bank's board approves appointment of Neerav Maniar as the Chief Compliance Officer
002120.CH -- Yunda Holding upgraded to buy from outperform at CLSA
^ASIAREADS -- StreetAccount Asia Reads
914.HK -- Anhui Conch Cement reports H1 net income attributable CNY6.47B vs CNY9.84B
1516.HK -- Sunac Services Holdings reports H1 net income attributable CNY339.9M vs guidance CNY300M
002352.CH -- S.F. Holding Co. files for Hong Kong IPO through Goldman Sachs, Huatai International, JPMorgan
GILD -- Gilead announces partial clinical hold for Magrolimab Studies in AML; studies in solid tumors unaffected
On Deck:
Hong Kong:
Earnings:
Health & Happiness (H&H) International Holdings (1112.HK), Geely Automobile Holdings (175.HK), ANTA Sports Products (2020.HK), Shui On Land (272.HK), Zhuzhou CRRC Times Electric (3898.HK), China Resources Power Holdings (836.HK), MINISO Group Holding (9896.HK), Henderson Land Development (12.HK), China Resources Medical Holdings (1515.HK), AK Medical Holdings (1789.HK), Brii Biosciences Ltd. (China) (2137.HK), Clover Biopharmaceuticals (2197.HK), Tingyi (Cayman Islands) Holding (322.HK), Kingsoft (3888.HK), Poly Property Services (6049.HK), Bairong (6608.HK), Tongcheng-Elong Holdings (780.HK)
Australia:
Earnings:
Helia Group (HLI.AU), Monash IVF Group (MVF.AU), Service Stream (SSM.AU), ARB Corp. (ARB.AU), Alumina (AWC.AU), Elanor Commercial Property Fund (ECF.AU), EnviroSuite (EVS.AU), Lycopodium (LYL.AU), Megaport (MP1.AU), Woodside Energy Group (WDS.AU), Autosports Group (ASG.AU), ClearView Wealth (CVW.AU), Cedar Woods Properties (CWP.AU), Pro-Pac Packaging (PPG.AU), Santos (STO.AU), The Lottery Corp. (TLC.AU), HMC Capital (HMC.AU), Corporate Travel Management (CTD.AU), Emeco Holdings (EHL.AU), Hansen Technologies (HSN.AU), Pepper Money (PPM.AU), PSC Insurance Group (PSI.AU), Qualitas (QAL.AU), ReadyTech Holdings (RDY.AU), Reece Australia (REH.AU), Retail Food Group (RFG.AU), Shine Justice (SHJ.AU), Woolworths Group (WOW.AU), WiseTech Global (WTC.AU)
New Zealand:
Earnings:
Scales Corp. (SCL.NZ), Channel Infrastructure NZ (CHI.NZ), Ebos Group (EBO.NZ), SKYCITY Entertainment Group (SKC.NZ)
Malaysia:
Earnings:
MISC Bhd (3816.MK)
Taiwan:
Earnings:
Hua Nan Financial Holdings (2880.TT)
Market Data:
Gold (Dec 23): +$1.20 or +0.06% to $1924.20
WTI Crude (Sep 23): +$0.11 or +0.14% to $80.83
$-¥: +0.78 or +0.53% to 146.1970
$-KRW: (0.43) or (0.03%) to 1339.7300
A$-$: +0.00 or +0.13% to 0.6415
$-INR: (0.04) or (0.05%) to 83.1135
$-CNY: (0.04) or (0.55%) to 7.2418
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