May 08 ,2024
Synopsis:
Asia equities poised to open mostly higher Thursday. Futures in Japan and Hong Kong traded moderately firmer, while Australia lower. However, trading ranges were generally narrow, reflecting subdued US price action overnight with futures slightly softer after hours. Japan ADRs skewed to losses with selloffs in Sony (SONY) and Nomura (NMR) among the standouts. Tech leads were mostly negative with Nasdaq underperforming S&P 500, Golden Dragon China index down 0.71%, but SOX up 0.12%. Treasuries weaker with the curve steepening; comes after five straight sessions seeing 10- and 30-year yields decline. Dollar index up 0.1% with yen weakness again the story in FX. Gold finished down 0.1%. Bitcoin futures down 1.3%. WTI crude settled up 0.8%.
US price action remained lackluster as markets await next meaningful signals on inflation, Fed policy and economic growth momentum. Positioning talk seeping into the narrative amid signs investors struggling to justify adding to exposure. Follows high-profile headlines that Druckenmiller slashed holdings in Nvidia and Buffett sold off some stake in Apple. Headline effects added to tech sector headwinds in Asia. Solid earnings continue to underpin sentiment as beat rates remain elevated in US and Europe, while Japan set to hit fresh record highs for FY net earnings.
China market narrative turning positive particularly following buoyant equity momentum since the Golden Week holidays, shoring up YTD gains in Hang Seng and Shanghai Composite index. Press continued to cite resonance from stronger than expected Q1 China GDP while PMIs remain in expansion and Citigroup's Economic Surprise Index for China has been in positive territory since early February. However, US-China trade friction overhang reinforced by US Commerce Secretary Raimondo's remarks that US could take an "extreme action" and ban Chinese connected vehicles or opt to impose restrictions. Commerce Department also said to be eyeing restrictions on China's access to advanced AI models.
Japan nominal wage growth slowed in March, leaving real wages down for a 24th straight month. Attention turns to data from April to monitor impacts from this year's historic wage hikes. China customs trade data due for release today. Reuters consensus looks for exports to have rebounded 1.5% y/y in April after a weaker-than-expected 7.5% drop in the prior month. Imports also seen recovering 4.8% following prior month's 1.9% decline. Attention on export growth has been elevated by US/EU scrutiny over China overcapacity. China credit data also slated for release this week, while CPI/PPI set for Saturday. BOJ Summary of Opinions for the latest MPM will garner attention for any more color on discussions about the future path of policy normalization.
Pre-open Company News:
SOBI.SS -- Swedish Orphan Biovitrum announces EU Commission has approved an indication extension for Aspaveli; Follows earlier positive CHMP opinion
500087.IN -- FDA completes cGMP inspection at Cipla's Kurkumbh facility with one inspectional observation
688065.CH -- Cathay Biotech initiated buy at China Post Securities (timing uncertain)
500182.IN -- Hero MotoCorp reports Q4 standalone EPS INR50.74 vs FactSet INR51.05 [9 est, INR35.00-54.60]
9690.HK -- Tuhu Car initiated strong recommend at China Merchants Securities (China) (timing uncertain)
INTUCH.TB -- Intouch Holdings Public reports Q1 normalized net income THB3.45B, +29% vs year-ago THB2.68B
OR.TB -- PTT Oil & Retail Business Public Co. reports Q1 EPS THB0.31 vs FactSet THB0.29 [5 est, THB0.26-0.32]
532343.IN -- TVS Motor reports Q4 standalone EPS INR10.22 vs FactSet INR11.43 [7 est, INR11.10-12.00]
2886.TT -- Mega Financial Holding reports April net income NT$2.63B; StreetAccount notes year-ago figure was NT$3.21B
5880.TT -- Taiwan Cooperative Financial Holding reports April PBT NT$1.73B; StreetAccount notes year-ago NT$1.68B
BLA.TB -- Bangkok Life Assurance Public reports Q1 net income attributable THB1.24B, +64% vs year-ago THB756.1M
TARO -- Taro Pharmaceutical Industries announces Glass Lewis recommends shareholders vote "FOR" Taro Sun Pharma merger
500087.IN -- StreetAccount Consensus Metrics Preview - Cipla Ltd Q4 Earnings
2308.TT -- Delta Electronics reports April revenue NT$33.54B, +6.3% y/y
2887.TT -- Taishin Financial Holdings reports April net income NT$1.70B; StreetAccount notes year-ago figure was NT$890M
On Deck:
China:
Economic:
08:00 CST: Import Y/Y; consensus +4%
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: M2 NSA Y/Y; consensus
08:00 CST: Trade Balance NSA; consensus +$80B
08:00 CST: New Yuan Loans; consensus
08:00 CST: Export Y/Y; consensus +1.3%
Hong Kong:
Earnings:
Hua Hong Semiconductor (1347.HK), SJM Holdings (880.HK)
Japan:
Economic:
08:50 JST: FX Reserves M/M; consensus
14:00 JST: Leading Index (Preliminary); consensus
Earnings:
Ajinomoto Co. (2802.JP), Japan Tobacco (2914.JP), SUMCO (3436.JP), Mercari (4385.JP), NOF Corp (4403.JP), Kao (4452.JP), Takeda Pharmaceutical (4502.JP), Fuji Media Holdings (4676.JP), FUJIFILM (4901.JP), Sumitomo Metal Mining (5713.JP), Brother Industries (6448.JP), Alps Alpine Co. (6770.JP), Sysmex (6869.JP), Hamamatsu Photonics KK (6965.JP), Nissan Motor (7201.JP), Nikon Corp (7731.JP), BANDAI NAMCO Holdings (7832.JP), Seibu Holdings (9024.JP), Kyushu Railway (9142.JP), SoftBank Corp (9434.JP), Kadokawa (9468.JP), Electric Power Development (9513.JP), NTT DATA Group (9613.JP), Meitec (9744.JP), KONAMI (9766.JP), CALBEE (2229.JP), Kakaku.com (2371.JP), Kirin (2503.JP), Daiwabo Holdings (3107.JP), Asahi Kasei (3407.JP), T-Gaia (3738.JP), GungHo Online Entertainment (3765.JP), Air Water (4088.JP), Daicel (4202.JP), Ono Pharmaceutical (4528.JP), Santen Pharmaceutical (4536.JP), Digital Garage (4819.JP), Noevir Holdings (4928.JP), Cosmo Energy Holdings (5021.JP), Tokai Carbon (5301.JP), NIPPON STEEL (5401.JP), Kobe Steel (5406.JP), Nippon Yakin Kogyo (5480.JP), Rinnai (5947.JP), DAIKIN INDUSTRIES (6367.JP), Kurita Water Industries (6370.JP), Sankyo (6417.JP), NSK Ltd (6471.JP), Oki Electric Industry Co. (6703.JP), Wacom Co. (6727.JP), Panasonic (6752.JP), Kawasaki Heavy Industries (7012.JP), Amvis Holdings (7071.JP), Zenkoku Hosho (7164.JP), SCREEN (7735.JP), Inabata & Co. (8098.JP), Kaga Electronics (8154.JP), K's Holdings (8282.JP), Tokyo Tatemono Co. (8804.JP), Sumitomo Realty & Development Co. (8830.JP), Relo Group (8876.JP), Capcom (9697.JP)
South Korea:
Earnings:
Kakao (035720.KS), Lotte Chemical (011170.KS), Hanon Systems (018880.KS), KT (030200.KS), LG Uplus (032640.KS), KT&G Corp (033780.KS), GS Holdings (078930.KS), Netmarble (251270.KS), CJ Logistics (000120.KS), NCsoft (036570.KS)
India:
Earnings:
Indian Overseas Bank (532388.IN), Punjab National Bank (532461.IN), Hindustan Petroleum (500104.IN), Bharat Petroleum (500547.IN), Quess Corp. (539978.IN), Computer Age Management Services (543232.IN)
Malaysia:
Economic:
03:00 EST: BN Overnight Policy Rate; consensus +3%
Singapore:
Earnings:
Frasers Hospitality Trust (ACV.SP), CSE Global (544.SP)
Taiwan:
Earnings:
ChipMOS Technologies (8150.TT), Far Eastern New Century (1402.TT)
Thailand:
Earnings:
Thai Oil Public (TOP.TB)
Philippines:
Economic:
10:05 SST: GDP NSA Y/Y; consensus +6%
Earnings:
Megaworld (MEG.PM), PLDT Inc (TEL.PM)
Market Data:
Gold (Jun 24): ($6.00) or (0.26%) to $2316.30
WTI Crude (Jun 24): +$0.24 or +0.30% to $79.23
$-¥: +1.08 or +0.70% to 155.5730
$-KRW: +3.74 or +0.27% to 1363.1900
A$-$: (0.00) or (0.31%) to 0.6578
$-INR: (0.01) or (0.01%) to 83.4593
$-CNY: +0.00 or +0.06% to 7.2238
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