Mar 07 ,2024
Synopsis:
Asian markets set for positive start to Friday. Futures pointing to opening gains in Japan and Hong Kong. ASX higher in initial trade. Nasdaq futures lower afterhours following tech-led gains in US overnight. Australian and New Zealand yields little changed after Treasury curve bull steepened following Powell's testimony. Dollar index down to mid-January lows as yen extends gains following its biggest daily advance since December. Crude touch higher while gold flat. Bitcoin hovering below record high.
Yen strength the big story in FX following latest ramp in BOJ normalization speculation. Yesterday's attention was on board member Nakagawa's speech highlighting progress on inflation target and Bloomberg sources noting government support for near-term rate hike. With initial results of wage negotiations expected 15-Mar, Japan's labor unions demanded largest pay hikes since 1993. Hawkish developments raised speculation of March NIRP exit (BOJ meets 18-19-Mar).
Mixed takeaways from Fed Chair Powell's Senate Banking Committee testimony Thursday, in which he said Fed not far from achieving confidence on inflation trajectory, suggesting it could soon be appropriate to begin to pull back restrictive policy stance. Markets now pricing in ~90 bp of easing in 2024 (vs 75 bp early last week) though Powell has previously indicated only minor changes to March SEP.
US nonfarm payrolls forecast to show step down in headline employment following January's outsized 353K print. No change expected in unemployment rate while hourly earnings growth forecast to have ticked down January (highest since Mar-2022). Attention will be on extent of wage growth pressures following drumbeat of Fed commentary stressing need for further evidence inflation tracking sustainably to 2% target.
Pre-open Company News:
2607.HK -- Shanghai Pharmaceuticals unit's citicoline sodium passes NMPA's consistency evaluation for generic drugs
9626.HK -- Bilibili reports Q4 adjusted EPADS (CNY1.34) vs FactSet (CNY1.49) [14 est, (CNY2.02)-(1.03)]
500180.IN -- HDFC Bank downgraded to outperform from buy at CLSA
300759.CH -- Pharmaron Beijing initiated recommend at Minsheng Securities (timing uncertain)
956.HK -- China Suntien Green Energy reports February power generation 1,051GWh, (8.3%) y/y
H78.SP -- Hongkong Land Holdings reports FY underlying net income $734.2M vs FactSet $764.0M
532779.IN -- Torrent Power wins contract to set up 306MW grid-connected Solar power project at 48 distributed locations
6098.HK -- Country Garden Services Holdings guides FY net income attributable CNY213.8-340.1M vs FactSet CNY705.2M [5 est, (CNY694.4M)-1.77B]
540180.IN -- Varun Beverages releases sustainability report
600754.CH -- Shanghai Jin Jiang International Hotels initiated outperform at Haitong Securities (timing uncertain)
1216.TT -- Uni-President Enterprises reports FY EPS NT$3.23 vs FactSet NT$3.72 [10 est, NT$3.55-4.08]
512.HK -- Grand Pharmaceutical Group receives NMPA approval for phase I clinical trial of GPN00884 eye drops for delay of progression of myopia in children
500520.IN -- Mahindra & Mahindra's promoter PMSL discloses sale of 9.3M shares
1610.HK -- COFCO Joycome Foods chairman, GM Jiang Guojin resigns, effective today
BGRIM.TB -- B.Grimm Power Public upgraded to neutral from underperform at Macquarie
On Deck:
China:
Economic:
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: M2 NSA Y/Y; consensus
08:00 CST: New Yuan Loans; consensus
Hong Kong:
Earnings:
ZTE (763.HK), Lee & Man Paper Manufacturing (2314.HK), China Tobacco International (HK) (6055.HK)
Japan:
Economic:
08:50 JST: Bank Loans NSA Y/Y; consensus
14:00 JST: Leading Index (Preliminary); consensus
Australia:
Earnings:
Victory Metals (VTM.AU)
Taiwan:
Economic:
16:00 TST: Export NSA Y/Y; consensus (2.05%)
Market Data:
Gold (Apr 24): +$2.20 or +0.10% to $2167.40
WTI Crude (Apr 24): +$0.22 or +0.28% to $79.15
$-¥: (1.54) or (1.03%) to 147.8510
$-KRW: (8.92) or (0.67%) to 1321.2000
A$-$: +0.01 or +0.85% to 0.6620
$-INR: (0.14) or (0.17%) to 82.7033
$-CNY: (0.01) or (0.08%) to 7.1923
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