May 09 ,2024
Synopsis:
Asia equities poised to open firmer Friday. Futures in Japan, Hong Kong and Australia all traded higher. US contracts extending broad gains in cash session. Tech leads were mixed; Nasdaq underperformed S&P 500, SOX fell 0.64%, Golden Dragon China rose a sharp 1.64%. Japan ADRs skewed to buy side with Orix (IX) a standout. Treasury yields fell across the curve. Dollar index was down 0.3%, holding up best vs yen. Gold finished up 0.8%. Bitcoin futures up 0.2%. WTI crude settled up 0.3% in somewhat choppy trading.
Better risk sentiment was attributed to renewing confidence in rate cuts. Follows higher than expected US jobless claims in the wake of soft nonfarm payrolls, and BOE edging toward easing pivot after leaving rates unchanged. Bond supply digestion was also noted as a positive as Treasury market strength coincided with well-received 30-year auction. However, near term directional views remain split as press cited a 22V Research poll showing 52% look for the next 10% move in S&P 500 to be higher and remainder seeing downside. Clearer majority anticipate firmer 10-year Treasuries towards 4% yield.
Corporate earnings continue to underpin optimism on fundamentals. Japan TSE Prime results so far showing sharp growth in manufacturer profits to new record highs, reflecting tailwinds from price hikes and weaker yen. Auto sector the main standout, but attention has already shifted to outlook headwinds including EV price war, high production costs affecting carmakers, and broader concerns over China economic slowdown and FX risks. Also some reverberations from hawkish BOJ Summary of Opinions as takeaways highlighted remarks pointing to a notable chance the pace of normalization will accelerate.
Two China provincial capital cities of Hangzhou and Xian lifted all home purchase restrictions to support the market. Follows encouragement from the latest Politburo meeting calling for more policy support to clear housing inventories. But market optimism surrounding the impact of relaxed rules has diminished and seen as marginal for cities outside of the four major capitals. Next attention on China credit data slated for release this week. Reuters consensus looks for new loans to fall sharply on the month but leaving outstanding loan growth slightly higher on the year. Follows broadly positive takeaways after the China trade data that showed a rebound in exports and imports. China inflation data set for Saturday.
Pre-open Company News:
540133.IN -- ICICI Prudential Life Insurance reports April APE INR5.26B, +42.9% y/y
500820.IN -- Asian Paints reports Q4 consolidated profit after tax INR12.75B vs StreetAccount INR13.36B
688472.CH -- CSI Solar initiated outperform at Haitong Securities (timing uncertain)
600031.CH -- Sany Heavy Industry downgraded to underperform from hold at Daiwa
251270.KS -- HYBE holder Netmarble discloses plan to dispose of 1.1M shares
2347.TT -- Synnex Technology International reports Q1 EPS NT$1.32 vs FactSet NT$1.25 [4 est, NT$1.04-1.37]
9945.TT -- Ruentex Development Co. reports April revenue NT$2.69B, +23.7% y/y
001979.CH -- China Merchants Shekou Industrial Zone Holdings reports April contracted sales CNY18.62B; StreetAccount notes year-ago CNY37.93B
532281.IN -- HCL Technologies assumed hold at BOB Capital Markets
9513.JP -- Electric Power Development announces 2024-2026 medium-term management plan
600875.CH -- Dongfang Electric initiated buy at Everbright Securities (timing uncertain)
K71U.SP -- Keppel REIT completes acquisition of 50% of 255 George St property in Sydney, Australia; deal announced 1-Apr
1402.TT -- Far Eastern New Century reports Q1 EPS NT$0.32; StreetAccount notes year-ago NT$0.29
5296.MK -- MR. D.I.Y. Group (M) reports Q1 EPS 1.5 sen vs year-ago 1.35 sen
STGT.TB -- Sri Trang Gloves (Thailand) Public reports Q1 net income attributable THB146.8M, +11% vs year-ago THB132.3M
On Deck:
China:
Economic:
08:00 CST: New Yuan Loans; consensus
Japan:
Economic:
08:30 JST: Real Household Consumption Expenditure Y/Y; consensus
08:30 JST: Real Household Income Y/Y; consensus
08:50 JST: Bank Loans NSA Y/Y; consensus
Earnings:
Toyo Suisan Kaisha (2875.JP), GMO Payment Gateway (3769.JP), Mitsubishi Gas Chemical (4182.JP), Nippon Shinyaku (4516.JP), Kansai Paint (4613.JP), Shiseido (4911.JP), Nippon Sheet Glass Co. (5202.JP), DOWA HOLDINGS Co. (5714.JP), Kubota (6326.JP), Minebea Mitsumi (6479.JP), GS Yuasa (6674.JP), Mebuki Financial Group (7167.JP), Mazda Motor (7261.JP), Honda Motor (7267.JP), Olympus (7733.JP), SBI Holdings (8473.JP), Keio Corp (9008.JP), Kamigumi (9364.JP), Nippon Telegraph & Telephone (9432.JP), KDDI Corp (9433.JP), GMO Internet Group (9449.JP), SHO-BOND Holdings (1414.JP), COMSYS Holdings (1721.JP), HASEKO (1808.JP), Daiwa House Industry Co. (1925.JP), EXEO Group (1951.JP), Morinaga & Co. (2201.JP), Meiji (2269.JP), NH Foods (2282.JP), SBS Holdings (2384.JP), Takara Holdings (2531.JP), Seria Co. (2782.JP), MatsukiyoCocokara & Co. (3088.JP), Tokyu Fudosan (3289.JP), SHIP HEALTHCARE HOLDINGS (3360.JP), Food & Life Companies (3563.JP), Internet Initiative Japan (3774.JP), Denka Co. (4061.JP), Fuso Chemical (4368.JP), H.U. Group Holdings (4544.JP), JCR Pharmaceuticals (4552.JP), BML Inc (4694.JP), Fullcast Holdings (4848.JP), Kobayashi Pharmaceutical (4967.JP), Takara Bio (4974.JP), Maruichi Steel Tube (5463.JP), Pacific Metals Co. (5541.JP), The Japan Steel Works (5631.JP), Sumitomo Electric Industries (5802.JP), Shizuoka Financial Group (5831.JP), Okuma Corp (6103.JP), Fuji Corp (Machinery) (6134.JP), Daifuku (6383.JP), Sega Sammy Holdings (6460.JP), HOSHIZAKI (6465.JP), THK CO. (6481.JP), Kokusai Electric (6525.JP), Hitachi Zosen (7004.JP), KYB Corp (7242.JP), Shimadzu (7701.JP), Nakanishi (7716.JP), Tokyo Seimitsu (7729.JP), Pilot Corp (7846.JP), ASICS Corp (7936.JP), Tokyo Electron (8035.JP), Hanwa Co. (8078.JP), The Chiba Bank (8331.JP), Seven Bank (8410.JP), Orient (8585.JP), Mitsui Fudosan Co. (8801.JP), Mitsubishi Estate (8802.JP), Starts Corp. (8850.JP), Keikyu (9006.JP), Keihan Holdings (9045.JP), Nagoya Railroad (9048.JP), MITSUI-SOKO HOLDINGS (9302.JP), eREX Co. (9517.JP), Japan Airport Terminal (9706.JP), SECOM Co. (9735.JP)
South Korea:
Earnings:
KT (030200.KS), NCsoft (036570.KS), Korea Electric Power (015760.KS)
Australia:
Earnings:
Life360 (360.AU)
New Zealand:
Earnings:
Warehouse Group (WHS.NZ)
India:
Earnings:
Cipla Ltd (500087.IN), Tata Motors (500570.IN), Bank of Baroda (532134.IN), Dr. Lal PathLabs (539524.IN), Kalyan Jewellers India (543278.IN), ABB India (500002.IN), Thermax (500411.IN), Eicher Motors (505200.IN), AARTI Industries (524208.IN), Bank of India (532149.IN)
Singapore:
Earnings:
Oversea-Chinese Banking Corp. (O39.SP), Singapore Post (S08.SP), SIA Engineering (S59.SP), Frasers Property (TQ5.SP)
Taiwan:
Earnings:
Foxconn Technology (2354.TT), EVA Airways (2618.TT), Jentech Precision Industrial (3653.TT)
Thailand:
Earnings:
CP All Public (CPALL.TB)
Market Data:
Gold (Jun 24): +$14.30 or +0.61% to $2354.60
WTI Crude (Jun 24): +$0.39 or +0.49% to $79.65
$-¥: (0.24) or (0.16%) to 155.2760
$-KRW: (0.56) or (0.04%) to 1364.6000
A$-$: +0.00 or +0.62% to 0.6619
$-INR: (0.02) or (0.02%) to 83.4526
$-CNY: (0.01) or (0.08%) to 7.2191
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