Feb 05 ,2024
Synopsis:
Asian markets set for mixed start to Monday trade. Hang Seng futures pointing to opening gains, while Nikkei futures marginally lower. ASX selling off in initial trade. US contracts flat afterhours following negative Monday session. Australian bonds under pressure following another backup in Treasury yields. FX markets steady after dollar index broke through to mid-November high. Gold a touch lower. Crude flat.
Bond market selloff attributed to repricing of Fed rate path with futures now pricing in ~105 bp of rate cuts in 2024 (vs ~140 bp prior to nonfarm payrolls data). Hotter-than-expected US macro data, and Fed caution on rate cuts prompting thoughts rate repricing has further to go amid risk Fed will maintain December projection of year-end funds rate of ~4.60% (implying 75 bp of cuts).
China imposed further curbs on share sales following heightened volatility over recent days. Previous market support pledges and rules restricting shares for short sales have failed to cauterize an equity market rout that brought mainland indexes to five-year lows. Traders have pointed to technicals and forced liquidation among factors fueling market selloff, though also suggestions of contrarian signaling from extreme pessimism and deeply oversold conditions.
RBA expected to leave cash rate unchanged at 4.35% today. Main interest will be extent to which RBA softens its mildly hawkish bias after Q4 CPI undershot its year-end projections. Some economists brought forward expected timing of first rate cut to Q3 while markets currently pricing in two rate cuts by end-2024. Meeting will be first under new board structure that will include votes on rate decision, as well as post-meeting press conference by Governor Bullock.
Pre-open Company News:
A17U.SP -- Street Takeaways - CapitaLand Ascendas REIT FY Earnings
207940.KS -- Seoul Central District Court rules SAMSUNG BIOLOGICS not guilty on accounting fraud in first trial
1918.HK -- Sunac China Holdings reports January contracted sales value CNY3.76B; StreetAccount notes year-ago CNY7.23B
300014.CH -- EVE Energy guides FY net income attributable CNY4.04-4.21B vs FactSet CNY4.46B [21 est, CNY3.94-5.03B]
3377.HK -- Sino-Ocean Group Holdings reports January contracted sales CNY1.20B; StreetAccount notes year-ago CNY3.73B
2772.HK -- Zhongliang Holdings Group reports January contracted sales CNY2.01B; StreetAccount notes year-ago figure CNY3.66B
1513.HK -- Livzon Pharmaceutical Group receives NMPA approval for clinical trial of semaglutide injection in overweight and obesity
500300.IN -- StreetAccount Consensus Metrics Preview - Grasim Industries Q3 Earnings
500165.IN -- Kansai Nerolac Paints reports Q3 consolidated EPS INR1.91 vs year-ago INR1.36
2327.TT -- Yageo reports January revenue NT$10.02B, +17.8% y/y
732.HK -- Truly International Holdings reports January revenue HK$1.64B, +84.6% y/y
600079.CH -- Humanwell Healthcare (Group) receives NMPA approval for phase III clinical trial of compound yixie granules in the treatment of non-acute hyperuricemia of gout
096770.KS -- SK Innovation reports FY operating profit KRW1.904T vs StreetAccount KRW2.217T
600031.CH -- Sany Heavy Industry board approves CNY600M-1B share buyback at up to CNY18/share
603259.CH -- WuXi AppTec completes CNY1B A-share buyback announced on 1-Feb
On Deck:
Hong Kong:
Earnings:
Hua Hong Semiconductor (1347.HK), SMIC (981.HK)
Japan:
Economic:
08:30 JST: Real Household Income Y/Y; consensus
08:30 JST: Real Household Consumption Expenditure Y/Y; consensus
Earnings:
Ajinomoto Co. (2802.JP), Mitsubishi Chemical (4188.JP), Daicel (4202.JP), Eisai (4523.JP), Fuji Media Holdings (4676.JP), LY Corp. (4689.JP), USS Co. (4732.JP), Brother Industries (6448.JP), GS Yuasa (6674.JP), Yokogawa Electric (6841.JP), Ricoh Co. (7752.JP), Nintendo (7974.JP), Kyushu Railway (9142.JP), Nissui (1332.JP), Kakaku.com (2371.JP), Nichirei (2871.JP), TechnoPro Holdings (6028.JP), DAIKIN INDUSTRIES (6367.JP), Sharp Corp (6753.JP), Toyota Motor (7203.JP), Shimadzu (7701.JP), Yamaha (7951.JP), Mitsubishi (8058.JP), GOLDWIN (8111.JP), Keihan Holdings (9045.JP), NSD Co. (9759.JP)
South Korea:
Earnings:
Yuhan Corp (000100.KS), HD Korea Shipbuilding & Offshore Engineering Co. (009540.KS), HD HYUNDAI Co. (267250.KS), Woori Financial Group (316140.KS), HD Hyundai Heavy Industries Co. (329180.KS), kakaopay (377300.KS), SKC Co. (011790.KS), KakaoBank (323410.KS)
Australia:
Economic:
11:30 AEST: Retail Sales SA M/M (Final); consensus
14:30 AEST: RBA Official Cash Rate; consensus +4.4%
Earnings:
Amcor (AMC.AU), Centuria Industrial REIT (CIP.AU), Cettire (CTT.AU), Dexus Industria REIT (DXI.AU), Newmark Property REIT (NPR.AU)
India:
Earnings:
Trident (521064.IN), Tata Teleservices (Maharashtra) (532371.IN), Max Financial Services (500271.IN), Britannia Industries (500825.IN)
Singapore:
Earnings:
NetLink NBN Trust (CJLU.SP), Fraser & Neave (F99.SP)
Taiwan:
Economic:
16:00 TST: CPI NSA Y/Y; consensus +2%
Earnings:
Novatek Microelectronics (3034.TT)
Philippines:
Economic:
09:00 SST: CPI Y/Y; consensus +3.05%
Earnings:
Globe Telecom (GLO.PM)
Market Data:
Gold (Apr 24): ($2.40) or (0.12%) to $2040.50
WTI Crude (Mar 24): ($0.05) or (0.07%) to $72.73
$-¥: +0.27 or +0.18% to 148.6600
$-KRW: (6.50) or (0.49%) to 1331.9900
A$-$: (0.00) or (0.49%) to 0.6478
$-INR: +0.08 or +0.10% to 83.0815
$-CNY: (0.01) or (0.18%) to 7.1790
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