Mar 19 ,2024
Synopsis:
Asian markets set for mixed start to Wednesday trade. Nikkei and Hang Seng futures pointing to modest gains on the open. ASX higher in initial trade. US contracts flat after S&P 500 posted another record closing high. Australian and New Zealand yields lower after Treasury curve bull steepened in the wake of well received 20Y auction. Dollar advanced, recording its biggest gain vs yen. Crude backing off Nov-2023 highs. Gold flat. Bitcoin selloff continues, down to two-week low.
Fed expected to leave rates unchanged Wednesday. Updated dot plot to get most of the attention amid risk that 2024 median shifts down to two rate cuts from three. Markets pricing in ~70 of easing in 2024 and less than 50% chance of a June cut after recent data showed stronger US economic growth and upside surprise in CPI and PPI data. Chair Powell expected repeat to Fed gaining confidence on inflation, but not there yet.
China expected to leave 1Y and 5Y LPRs unchanged following after keeping MLF rate on hold last Friday. Comes after record cut to 5Y rate in February after MLF was similarly unchanged. Easing expectations fanned recently by dovish comments from PBOC Governor Pan at NPC and economists continue to look for further rate cut in 2024. However, there also remain doubts about policy efficacy amid calls for fiscal stimulus to assume greater role in reviving consumption.
BOJ takeaways delved into policy trajectory beyond March with Governor Ueda reiterating financial conditions to remain accommodative and consensus looking for no further hikes in 2024. Some argued risk of additional tightening with Ueda noting real rates still deeply negative and risks related to yen weakness. Also flagged potential for further tightening if positive wage/price trends fuel rise in inflation expectations. More dovish views cited subdued Japan economic growth.
Pre-open Company News:
9868.HK -- XPeng, Inc. reports Q4 non-GAAP EPADS (CNY1.98) vs year-ago (CNY2.57)
1083.HK -- Towngas Smart Energy reports FY net income attributable HK$1.57B vs FactSet HK$1.37B [4 est, HK$1.15-1.69B]
1810.HK -- Xiaomi reports Q4 adjusted net income CNY4.91B vs FactSet CNY4.15B
9201.JP -- Japan Airlines Co. initiated buy at UBS
1882.HK -- Haitian International Holdings upgraded to buy from outperform at CLSA
1909.HK -- Fire Rock Holdings guides FY net income to increase by 1,500% y/y to HK$567.6M vs year-ago HK$35.6M
601138.CH -- Foxconn Industrial Internet initiated outperform at Haitong
000661.CH -- Changchun High & New Technology Industries (Group) reports FY net income attributable CNY4.53B vs FactSet CNY4.76B [5 est, CNY4.57-5.01B]
688188.CH -- Shanghai BOCHU Electronic Technology Corp. confirms FY prelim. results as announced on 23-Feb
300496.CH -- Thunder Software Technology reports FY net income attributable CNY466.2M vs FactSet CNY765.1M [18 est, CNY632-897.0M]
300896.CH -- IMEIK Technology Development reports FY net income attributable CNY1.86B vs guidance CNY1.81-1.90B vs FactSet CNY1.87B [24 est, CNY1.82-1.93B]
543066.IN -- SBI Cards and Payment Services declares interim DPS INR2.50; record 28-Mar, payable 17-April
1238.HK -- Powerlong Real Estate Holdings guides FY core net income attributable (CNY1.00-1.20B) vs year-ago CNY2.45B
6699.HK -- Angelalign Technology reports FY adjusted net income CNY178.9M vs FactSet CNY78.6M
4502.JP -- FDA grants accelerated approval to Takeda's Iclusig (ponatinib) in newly diagnosed Ph+ ALL
On Deck:
China:
Economic:
09:30 CST: 1 Year Loan Prime Rate; consensus
Earnings:
China United Network Communications (600050.CH), Shanghai BOCHU Electronic Technology Corp. (688188.CH)
Hong Kong:
Earnings:
Huaneng Power International (902.HK), Kuaishou Technology (1024.HK), Road King Infrastructure (1098.HK), Geely Automobile Holdings (175.HK), Innovent Biologics (1801.HK), Sinopec Shanghai Petrochemical (338.HK), JD Health International (6618.HK), Tencent Holdings (700.HK), CK Infrastructure Holdings (1038.HK), CSPC Pharmaceutical Group (1093.HK), 3SBio Inc (1530.HK), China Coal Energy (1898.HK), JW (Cayman) Therapeutics (2126.HK), Sunny Optical Technology (Group) (2382.HK), Hong Kong & China Gas (3.HK), Kingsoft (3888.HK), Power Assets Holdings (6.HK), Kerry Properties (683.HK), China Resources Power Holdings (836.HK), Pop Mart International Group (9992.HK), Kangji Medical Holdings (9997.HK)
Australia:
Earnings:
Brickworks (BKW.AU), Sigma Healthcare (SIG.AU), Washington H. Soul Pattinson & Co. (SOL.AU)
Malaysia:
Earnings:
Top Glove Corp. (7113.MK)
Market Data:
Gold (Apr 24): +$1.20 or +0.06% to $2160.90
WTI Crude (Apr 24): ($0.36) or (0.43%) to $83.11
$-¥: +1.81 or +1.21% to 150.9520
$-KRW: (2.80) or (0.21%) to 1335.9100
A$-$: (0.00) or (0.51%) to 0.6526
$-INR: +0.08 or +0.09% to 83.0223
$-CNY: (0.00) or (0.01%) to 7.1978
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