Aug 23 ,2023
Synopsis:
Asia equities poised for a positive open Thursday. Futures in Japan, Hong Kong and Australia were all higher alongside US contracts. Follows solid gains in the cash session, with most of the attention towards the market close on a run-up in Nvidia (NVDA) shares ahead of its post-close earnings release that exceeded bullish expectations. Tech leads skewed positive as Nasdaq outperformance combined with sharp gains in SOX and Nasdaq Golden Dragon China Index. Treasuries were notably stronger across the curve, taking 10y yield to the lowest level a week. Dollar index fell 0.2% with greenback weaker vs yen. Gold finished up 1.2%. Bitcoin futures up 3.2% after finishing down in ten of the last eleven trading sessions. WTI crude ended down 0.9%, though off worst levels after bigger crude draw than expected.
Nvidia results came in well above expectations. Optimism fueled further by bullish Q3 revenue guidance and $25B buyback. Takeaways highlighted AI as the key underlying driver, consistent with earlier previews. Treasury rally was the other main theme, attributed to soft PMIs with similar dynamic in Europe. Markets now await the Jackson Hole symposium on Friday that has already stimulated an abundance of discussions about how Powell will likely continue to lean hawkish.
Regional focus on BOK, though forecasters unanimously expect no rate change for the fifth straight meeting. Some thoughts board members will retain a hawkish bias. Similarly strong consensus on no change from Bank Indonesia. Elsewhere, Australian government to release its Intergenerational Report. Facing pressure for tax reforms, Treasurer Chalmers told ABC TV that he is not considering corporate tax changes, while Finance Minister Gallagher signaled only modest adjustments to tax policy. Japan will start releasing treated radioactive water from Fukushima nuclear plant into the Pacific Ocean on Thursday, though criticism from China and seafood import bans by Hong Kong and Macau have yet to gain meaningful traction in markets.
Pre-open Company News:
6878.HK -- Hong Kong court adjourns Differ Group Auto's winding-up petition hearing to 20-Sep
CBG.TB -- Carabao Group Public upgraded to neutral from reduce at Nomura
2600.HK -- Aluminum Corp. of China upgraded to buy from overweight at Huatai Securities
002049.CH -- Unigroup Guoxin Microelectronics reports H1 net income attributable CNY1.39B, +16% vs year-ago CNY1.20B
185.HK -- Zensun Enterprises guides H1 net income (CNY350.0-450.0M) vs year-ago CNY54.6M
1769.HK -- Scholar Education Group reports H1 adjusted net income attributable CNY46.5M vs year-ago (CNY32.0M)
2196.HK -- Fosun Pharma's drug registration application for cefixime granules accepted by NMPA
9966.HK -- Alphamab Oncology reports H1 net income attributable (CNY39.9M) vs year-ago (CNY147.3M)
Bernstein initiates 543066.IN, 543396.IN
2005.HK -- SSY Group's lactate-G1.5% low calcium peritoneal dialysis solution passes NMPA's consistency evaluation for generic drugs
300496.CH -- Thunder Software Technology chairman Zhao Hongfei proposes CNY30-50M on-market share buyback within 6 months
688008.CH -- Montage Technology reports H1 net income attributable CNY81.9M vs year-ago CNY681.0M
1821.HK -- ESR Group reports H1 adjusted PATMI $303.8M vs year-ago $412.0M
909.HK -- Ming Yuan Cloud Group Holdings reports H1 adjusted net income (CNY97.1M) vs year-ago (CNY342.7M)
000661.CH -- Changchun High & New Technology Industries (Group) reports H1 net income attributable CNY2.16B, +2% vs year-ago CNY2.12B
On Deck:
Hong Kong:
Earnings:
Everest Medicines (1952.HK), AAC Technologies Holdings (2018.HK), VSTECS Holdings (856.HK), Cloud Music (9899.HK), Yeahka (9923.HK), Ping An Healthcare & Technology (1833.HK), The Bank of East Asia (23.HK), Comba Telecom Systems Holdings (2342.HK), China Taiping Insurance Holdings (966.HK)
South Korea:
Economic:
11:10 KST: BoK Repo Rate; consensus +3.5%
Australia:
Earnings:
Experience Co. (EXP.AU), IVE Group (IGL.AU), Lovisa Holdings (LOV.AU), Nine Entertainment Co. Holdings (NEC.AU), Propel Funeral Partners (PFP.AU), Qantas Airways (QAN.AU), St. Barbara (SBM.AU), Eagers Automotive (APE.AU), Capitol Health (CAJ.AU), Calix Ltd (CXL.AU), E&P Financial Group (EP1.AU), Hutchison Telecommunications (Australia) (HTA.AU), humm group (HUM.AU), Horizon Oil (HZN.AU), Imricor Medical Systems (IMR.AU), MA Financial Group (MAF.AU), McPherson's (MCP.AU), Pengana Capital Group (PCG.AU), Peet (PPC.AU), Perpetual (PPT.AU), Qube Holdings (QUB.AU), Redox Ltd. (RDX.AU), Stockland (SGP.AU), Servcorp (SRV.AU), Universal Store Holdings (UNI.AU), Australian Finance Group (AFG.AU), Michael Hill International (MHJ.AU), Pacific Current Group (PAC.AU), Aussie Broadband (ABB.AU), Australian Ethical Investment (AEF.AU), Ardent Leisure Group (ALG.AU), Accent Group (AX1.AU), Costa Group Holdings (CGC.AU), COG Financial Services (COG.AU), EQT Holdings (EQT.AU), IPD Group (IPG.AU), Integrated Research (IRI.AU), Pilbara Minerals (PLS.AU), PlaySide Studios (PLY.AU), PeopleIn (PPE.AU), PEXA Group (PXA.AU), Regis Healthcare (REG.AU)
New Zealand:
Earnings:
Vector (VCT.NZ), Vista Group International (VGL.NZ), NZME (NZM.NZ)
Market Data:
Gold (Dec 23): ($2.80) or (0.14%) to $1945.30
WTI Crude (Oct 23): ($0.27) or (0.34%) to $78.62
$-¥: (1.23) or (0.84%) to 144.6480
$-KRW: (10.03) or (0.75%) to 1329.2400
A$-$: +0.01 or +0.87% to 0.6479
$-INR: (0.54) or (0.65%) to 82.5447
$-CNY: (0.02) or (0.22%) to 7.2775
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