Mar 05 ,2024
Synopsis:
Asian markets set for a mixed start to Wednesday trade. Nikkei futures pointing to declines on the open. ASX unchanged initial trade. Hang Seng futures flat. US contracts little changed following tech-led retreat overnight. Australian and New Zealand bonds rallying, tracking earlier Treasury curve flattening. FX markets steady after dollar continue to tread water ahead of Fed Chair Powell's testimony. Commodities mixed with crude ending higher but gold pulling back. Bitcoin fell sharply after touching record high.
US-listed Chinese stocks extended declines overnight with losses blamed on disappointment at policy measures to support growth target of ~5%. Criticisms were focused on absence of meaningful measures to boost consumption and property market. Emphasis on preventing bubbles and defusing financial risks also viewed as an indication of policymaker aversion to more forceful stimulus that economists say is needed to revive growth.
Australian economy forecast to have risen at unchanged pace (q/q), taking yearly rate down below 2%. Concerns of shock contraction eased following better-than-expected trade and public demand figures, though economists warning of downside risks to household consumption. Market currently pricing in first RBA rate cut in September, though downside GDP surprise seen bringing forward timing of first rate cut.
Fed Chair Powell to appear before House Financial Services Committee later Wednesday. Previews do not anticipate much deviation from Powell's comments made at January FOMC meeting, or recent Fed messaging emphasizing need to see more evidence inflation is returning to target. Powell's testimony occurs against backdrop of hawkish repricing as markets dial back rate cut expectations amid resilient growth and stick inflation risks.
Pre-open Company News:
000876.CH -- New Hope Liuhe reports February pork sales CNY1.84B, (27.7%) y/y
^IATA.LN -- IATA global air cargo demand (CTK) 18.4% in Jan
535755.IN -- Aditya Birla Fashion and Retail notes conversion of warrants to 65.8M shares of company by Caladium Investment
9987.HK -- Yum China Holdings initiated add at CGS-CIMB
600085.CH -- NMPA approves Beijing TongRenTang's TCM Qishen powder for clinical trial to treat heart failure with reduced ejection fraction
507685.IN -- Wipro to invest $5.9M for 27% stake in join venture with General Motors and Magna International
601138.CH -- Foxconn Industrial Internet's board dismisses CFO Guo Junhong
732.HK -- Truly International Holdings reports February revenue HK$1.14B, (5.5%) y/y
500103.IN -- Bharat Heavy Electricals receives INR95.00B contract from NTPC for Singrauli Thermal project
533148.IN -- JSW Renew Energy Five signs battery energy storage purchase agreement with Solar Energy Corporation
600066.CH -- Yutong Bus reports February vehicle sales 1,385 units vs year-ago 788 units
Bernstein initiates 2801.JP, 2802.JP, 2875.JP, and 2897.JP (timing uncertain)
Susquehanna downgrades 005930.KS, GFS
House bill seeks to compel ByteDance to divest TikTok
215.HK -- Hutchison Telecommunications Hong Kong Holdings reports FY net income attributable (HK$52M) vs StreetAccount HK$77.6M
On Deck:
Hong Kong:
Earnings:
SJM Holdings (880.HK), Uni-President China Holdings (220.HK), JD Logistics (2618.HK), Techtronic Industries (669.HK)
South Korea:
Economic:
08:00 KST: CPI M/M; consensus +0.5%
08:00 KST: CPI NSA Y/Y; consensus +3%
Australia:
Economic:
11:30 AEST: GDP SA Q/Q; consensus +0.2%
11:30 AEST: GDP Y/Y; consensus +1.5%
11:30 AEST: GDP SAAR Q/Q; consensus +1.2%
11:30 AEST: Retail Sales SA M/M (Final); consensus
Market Data:
Gold (Apr 24): ($5.70) or (0.27%) to $2136.20
WTI Crude (Apr 24): +$0.04 or +0.05% to $78.19
$-¥: (0.58) or (0.38%) to 149.9570
$-KRW: +1.38 or +0.10% to 1333.4100
A$-$: (0.00) or (0.14%) to 0.6502
$-INR: (0.13) or (0.15%) to 82.8918
$-CNY: (0.00) or (0.05%) to 7.1960
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