Feb 06 ,2024
Synopsis:
Asian markets set for a mixed start to Wednesday trade. Hang Seng futures signaling opening gains after Nasdaq Golden Dragon index rallied 6% overnight. Nikkei futures lower. ASX higher in initial trade. US contracts flat following mostly listless Tuesday session. Australian bonds tracking earlier Treasury rebound, though NZ yields higher following jobs beat. FX markets steady after dollar index pulled back from earlier highs. Crude and gold little changed after logging mild gains Tuesday.
China rally follows Tuesday pledge by China's sovereign wealth fund to expand ETF purchases. Reported meeting between President Xi and regulators to discuss market conditions also cited as a driver. However, still doubts whether this will offer anymore than a temporary reprieve given lack of traction from recent stabilization headlines, policymaker resistance to stimulus, and pervasive economic weakness. Rebound considered more likely a function of oversold conditions and depressed positioning and sentiment.
Bond yields have stabilized after recent repricing of the Fed rate path on Chair Powell's remarks, and hotter-than-expected US macro data. Follows recent yield backup as market expectations wound back to 4-5 Fed rate cuts in 2024 vs the 7 being priced last month. Comes amid debate over path of disinflation in light of resilient macro data and policymaker wariness about easing too soon.
New Zealand Q4 employment data came in hotter with headline jobs growth rebounding by more than forecast and jobless rate rising by less than expected. Data adds to doubts whether RBNZ will back off its hawkish policy bias at the February meeting after chief economist Conway seemed to downplay pivot expectations last month by noting there is still a way to go to return inflation to the 1-3% target midpoint.
Pre-open Company News:
2039.HK -- China International Marine Containers (Group) completes up to CNY300M A-share buyback announced on 16-Nov
535.HK -- Gemdale Properties & Investment reports January aggregate contracted sales CNY814M; StreetAccount notes year-ago CNY2.30B
2885.TT -- Yuanta Financial Holding reports January net income NT$2.83B; StreetAccount notes year-ago figure was NT$932M
600109.CH -- Controlling shareholder Changsha Yongjin proposes Sinolink Securities to launch CNY50.0-100.0M buyback programme
1801.HK -- Innovent Biologics reports Q4 product revenue of ~CNY1.6B, +65% y/y
F99.SP -- Fraser & Neave reports Q1 net income attributable SG$43.8M vs year-ago SG$28.6M
W05.SP -- Wing Tai Holdings reports H1 net income attributable SG$20.5M vs year-ago SG$63.3M
119.HK -- Poly Property Group reports January contracted sales CNY3.3B; StreetAccount notes year-ago CNY4.9B
601669.CH -- Power Construction Corporation of China reports Jan new contract value CNY103.45B, +15.2% y/y
532522.IN -- Petronet LNG signs long-term contract to purchase 7.5MMPTA LNG from QatarEnergy
2518.HK -- Autohome reports Q4 non-GAAP EPADS CNY4.14 vs FactSet CNY4.14
2333.HK -- Great Wall Motor reports January sales volume 104,030 units, +69.1% y/y
543330.IN -- Devyani International initiated buy at Elara Capital
603127.CH -- JOINN Laboratories chairman proposes CNY50-100M buyback programme
002415.CH -- Hangzhou Hikvision Digital Technology controlling shareholder completes purchase of up to CNY600M of shares
On Deck:
China:
Economic:
16:00 CST: FX Reserves; consensus +$3213.5B
Japan:
Economic:
08:50 JST: FX Reserves M/M; consensus
14:00 JST: Leading Index (Preliminary); consensus
Earnings:
DeNA Co. (2432.JP), Kyowa Kirin (4151.JP), NOF Corp (4403.JP), Kao (4452.JP), AGC (5201.JP), Casio Computer Co. (6952.JP), Taiyo Yuden Co. (6976.JP), Mebuki Financial Group (7167.JP), Suzuki Motor (7269.JP), Iwatani (8088.JP), SBI Holdings (8473.JP), ORIX (8591.JP), KATITAS (8919.JP), Hankyu Hanshin Holdings (9042.JP), SoftBank Corp (9434.JP), NTT DATA Group (9613.JP), Japan Airport Terminal (9706.JP), Unitika (3103.JP), Asahi Kasei (3407.JP), Internet Initiative Japan (3774.JP), Denka Co. (4061.JP), Mitsui Chemicals (4183.JP), Terumo (4543.JP), Mitsui Mining & Smelting Co. (5706.JP), Miura Co. (6005.JP), Oki Electric Industry Co. (6703.JP), Unicharm (8113.JP), Tobu Railway Co. (9001.JP)
South Korea:
Earnings:
KakaoBank (323410.KS), Samsung Heavy Industries Co. (010140.KS), Lotte Chemical (011170.KS), KT&G Corp (033780.KS), KB Financial (105560.KS), Netmarble (251270.KS), CJ Logistics (000120.KS), Samsung Card Co. (029780.KS), KT (030200.KS), LG Uplus (032640.KS), NCsoft (036570.KS)
Australia:
Earnings:
AGL Energy (AGL.AU), Transurban Group (TCL.AU), Macquarie Group (MQG.AU), Charter Hall Long WALE REIT (CLW.AU), Mirvac (MGR.AU), REA Group (REA.AU)
India:
Earnings:
Trent Ltd (500251.IN), Nestle India (500790.IN), Uno Minda (532539.IN), Gujarat Fluorochemicals (542812.IN), Lupin Ltd (500257.IN), Cummins India (500480.IN), Tata Consumer Products (500800.IN), Apollo Tyres (500877.IN), Solar Industries India (532725.IN), Fortis Healthcare (532843.IN), Power Grid Corp. of India (532898.IN), General Insurance Corporation of India (540755.IN)
Singapore:
Earnings:
DBS Group Holdings (D05.SP), Manulife US REIT (BTOU.SP), Hutchison Port Holdings Trust (NS8U.SP)
Taiwan:
Economic:
16:00 TST: Export NSA Y/Y; consensus +19.7%
Market Data:
Gold (Apr 24): $0.00 or 0.00% to $2051.40
WTI Crude (Mar 24): +$0.12 or +0.16% to $73.43
$-¥: (0.84) or (0.56%) to 147.8350
$-KRW: (9.62) or (0.72%) to 1324.3200
A$-$: +0.00 or +0.69% to 0.6527
$-INR: +0.02 or +0.03% to 83.0699
$-CNY: (0.00) or (0.01%) to 7.1790
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