May 07 ,2024
Synopsis:
Asia equities poised to open mixed Wednesday. Futures in Japan traded lower, Hong Kong flat and Australia higher. Follows similarly varied performance in US benchmarks with futures steady after hours. Tech leads were negative with Nasdaq underperforming S&P 500, SOX down 0.74% and Golden Dragon China index down 2.12%. Japan ADRs skewed to losses. Treasuries were firmer with curve flattening and 3Y auction well received. Dollar index up 0.3%, firmer again on yen cross. Gold finished down 0.3%. Bitcoin futures down 0.4%. WTI crude settled down 0.1%.
Quiet session overnight with a lack of meaningful catalysts. Market summaries discussed some recalibration of the outlook after Fed downplayed potential rate hikes. Solid earnings season remains an underpinning factor with added support from recent declines in long-end Treasury yields. Yet Kashkari was the latest Fed member to talk about a higher neutral rate, raising his forecast to 2.5% from 2%, reinforcing the higher-for-longer theme. Markets continue to monitor Middle East developments as Israel seized Rafah border crossing.
Asia markets digested the RBA policy statement and Governor Bullock's press conference after cash rate was left unchanged yesterday. Early takeaways indicated perceptions that guidance was less hawkish than expected in the context of higher than expected Q1 inflation. Yet secondary recaps highlighted RBA's increased vigilance against elevated inflation, underscored by Bullock's remark that a rate hike was discussed with no mention of a rate cut. After economists' rate cut calls were generally pushed back to November in the lead-up to the RBA meeting, markets also pared expectations of a rate hike after the announcement. Some attention on BOJ Governor Ueda's comments yesterday after meeting with Prime Minister Kishida, apparently turning more cautious towards economic risks from yen depreciation.
Macro calendar remains light. Asia awaits China trade and credit data slated for release in the latter part of this week, followed by inflation on Saturday. Japan wage data for March due Thursday, though figures not anticipated to reflect this year's historic pay raises at least until April. On earnings, regional megacaps coming into focus with Toyota (7203.JP) results due after the close today after Nintendo (7974.JP) beat guidance yesterday and signaled announcement of next-gen Switch console to come by March next year. Nissan (7201.JP), Nippon Steel (5401.JP), Panasonic (6752.JP) and SMIC (981.HK) due tomorrow.
Pre-open Company News:
688.HK -- China Overseas Land & Investment reports April contracted property sales CNY21.80B, (36.0%) y/y
000625.CH -- Chongqing Changan Automobile reports April vehicle production 208,408 units, +18.1% y/y
TIDLOR.TB -- Ngern Tid Lor Public Co. reports Q1 net income THB1.10B, +16% vs year-ago THB955.1M
500233.IN -- Kajaria Ceramics reports Q4 consolidated EPS INR6.43 vs FactSet INR7.91 [5 est, INR7.49-8.44]
688390.CH -- Jiangsu Goodwe Power Supply Technology completes up to CNY10M buyback announced on 7-Feb
033780.KS -- StreetAccount Consensus Metrics Preview - KT&G Corp Q1 Earnings
9910.TT -- Feng Tay Enterprise reports April consolidated revenue NT$7.08B, +4.4% y/y
509488.IN -- Graphite India reports Q4 consolidated EPS INR0.80 vs year-ago INR1.58
6669.TT -- Wiwynn reports Q1 EPS NT$26.92 vs FactSet NT$21.72 [19 est, NT$16.00-28.42]
MTC.TB -- Muangthai Capital Public reports Q1 EPS THB0.66 vs FactSet THB0.63 [6 est, THB0.60-0.66]
Bernstein initiates 1590.TT, 6273.JP
532514.IN -- Indraprastha Gas reports Q4 standalone EPS INR5.47 vs FactSet INR6.32 [8 est, INR5.90-7.22]
533148.IN -- JSW Energy reports Q4 consolidated EPS INR2.13 vs year-ago INR1.66
500271.IN -- Follow-up: Max Financial Services reports FY24 total APE INR74.33B vs year-ago INR62.48B
On Deck:
China:
Economic:
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: M2 NSA Y/Y; consensus +8.2%
08:00 CST: New Yuan Loans; consensus
Hong Kong:
Earnings:
Budweiser Brewing Co. APAC (1876.HK)
Japan:
Earnings:
DeNA Co. (2432.JP), LY Corp. (4689.JP), USS Co. (4732.JP), AGC (5201.JP), Taiyo Yuden Co. (6976.JP), IHI (7013.JP), Mitsubishi Motors (7211.JP), ITOCHU (8001.JP), ORIX (8591.JP), Yamato Holdings Co. (9064.JP), Benefit One (2412.JP), TIS Inc. (3626.JP), KH Neochem Co. (4189.JP), Trend Micro (4704.JP), Lion Corp. (4912.JP), KOSE Corp (4922.JP), OMRON (6645.JP), ROHM Co. (6963.JP), Mitsubishi Heavy Industries (7011.JP), Toyota Motor (7203.JP), Net One Systems (7518.JP), Yamaha (7951.JP), Fuyo General Lease (8424.JP), Nippon Yusen (9101.JP), Renova Inc (Japan) (9519.JP), NSD Co. (9759.JP)
South Korea:
Earnings:
KakaoBank (323410.KS), SK Telecom (017670.KS), KRAFTON (259960.KS), Kakao (035720.KS)
Australia:
Earnings:
REA Group (REA.AU)
India:
Earnings:
Bharat Forge (500493.IN), Canara Bank (532483.IN), Capri Global Capital (531595.IN), Gujarat State Petronet (532702.IN)
Singapore:
Earnings:
Daiwa House Logistics Trust (DHLU.SP), United Overseas Bank Ltd. (Singapore) (U11.SP), Fraser & Neave (F99.SP)
Taiwan:
Economic:
16:00 TST: Export NSA Y/Y; consensus +13.6%
Thailand:
Earnings:
Thai Union Group Public (TU.TB)
Philippines:
Earnings:
ACEN Corp. (ACEN.PM), JG Summit Holdings (JGS.PM), Monde Nissin (MONDE.PM), SM Investments (SM.PM)
Market Data:
Gold (Jun 24): ($1.00) or (0.04%) to $2323.20
WTI Crude (Jun 24): ($0.06) or (0.08%) to $78.32
$-¥: +0.88 or +0.57% to 154.7800
$-KRW: +1.78 or +0.13% to 1357.2800
A$-$: (0.00) or (0.53%) to 0.6587
$-INR: (0.10) or (0.12%) to 83.4692
$-CNY: +0.00 or +0.06% to 7.2184
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