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StreetAccount Summary - Asian Market Preview: Nikkei Futures (0.08%), Hang Seng Futures (0.05%), ASX SPI 200 (0.19%), S&P Futures (0.06%)

May 12 ,2024

  • Synopsis:

    • Asia equities poised to open lower Monday. Futures in Japan, Hong Kong and Australia were mildly softer. Follows narrowly mixed price action in US on Friday with futures trading marginally lower. Tech leads were also mixed as Nasdaq underperformed S&P 500, Golden Dragon China index declined, but SOX logged a solid increase. Treasuries declined across the curve. Dollar index was up 0.1%. Gold finished up 1.5%, capping off a near-3% gain for the week. Bitcoin futures off 3.3%. WTI crude settled down 1%, after failing to get above $80/barrel.

    • Global market headlines remained generally benign with attention already shifting to Wednesday's April CPI report as the next key risk event. Consensus looks for some moderation in core inflation, with the potential to add to more constructive recent tone about soft landing and possibility of a H2 start to rate cuts. Bulls also pointing to continued solid earnings growth and renewed buyback tailwind as well as the longer-term AI secular growth theme. Bears counter with concerns about sticky inflation, unrealistic expectations for near-term Fed easing, cracks in the consumer-resilience theme, and worries about a growth slowdown weighing on corporate results.

    • Asia developments were more notable. Press sources widely indicated Biden administration set to announce major tariff increases on Chinese imports. EV levies set to jump to ~100% while others in targeted industries will double or triple. On data, China CPI inflation was slightly above expectations while PPI was lower. April new loans and M2 money supply growth missed while TSF logged a rare contraction. However, PBOC said to be gauging broker demand in preparation for the CNY1T in ultra-long special treasury bonds to be issued this year. China market transparency facing another setback as Shanghai and Shenzhen exchanges plan to cease publishing real-time flow data on Hong Kong Stock Connect. PBOC Q1 policy report reaffirmed an accommodative policy stance.

    • In the week ahead, Asia focus will be on China activity data for April (Fri). PBOC MLF operation (Wed) likely to maintain the 1-year rate with more attention on the rollover amount following recent net liquidity drains. Japan Q1 GDP (Thu) expected to show a contraction amid sluggish private demand partly driven by temporary auto suspensions induced by certification scandals. Australia awaits the presentation of the 2024-25 federal budget (Tue). Also, April employment data (Thu) on the radar after last month showed unexpected declines in both headline job growth and unemployment rate. Key earnings releases this week include SoftBank (Mon), followed by Alibaba, Tencent and Hon Hai Precision (Tue).

  • Pre-open Company News:

    • PHO.NO -- Photocure partner Asieris announces NDA acceptance for regulatory review of Cevira in China

    • 1585.HK -- Yadea Group Holdings downgraded to neutral from buy at BofA

    • 2869.HK -- Greentown Service Group upgraded to hold from reduce at CGS International

    • 2609.TT -- Yang Ming announces purchase of 3 container ships

    • 2386.HK -- SINOPEC Engineering (Group) initiated outperform at Haitong

    • 036570.KS -- NCsoft upgraded to buy from hold at Samsung Securities

    • 500570.IN -- Tata Motors downgraded to hold from buy at Mirae Asset Securities

    • 3606.HK -- Fuyao Glass Industry Group downgraded to hold from buy at Daiwa

    • 7735.JP -- Quick Take - SCREEN shares fall (12.2%) on FY results despite positive performance

    • 000963.CH -- Huadong Medicine announces the receipt of drug registration acceptance notice by a wholly-owned subsidiary

    • S63.SP -- Singapore Technologies Engineering reports Q1 revenue SG$2.70B vs year-ago SG$2.29B

    • PBOC maintains accommodative stance with credit demand weak, inflation mixed:

    • Shanghai Electric Group downgraded to hold from buy at HSBC

    • 5401.JP -- Quick Take - NIPPON STEEL FY earnings

    • CLSA initiates China Resources Gas Group & ENN Energy with buy ratings

  • On Deck:

    • Hong Kong:

      • Earnings:

        • CLP Holdings (2.HK)

    • Japan:

      • Earnings:

        • PERSOL Holdings (2181.JP), Hakuhodo DY Holdings (2433.JP), Nissan Chemical (4021.JP), Tosoh Corp (4042.JP), TOKYO OHKA KOGYO (4186.JP), Bridgestone (5108.JP), Suzuki Motor (7269.JP), Subaru (7270.JP), Yamaha Motor Co. (7272.JP), Citizen Watch Co. (7762.JP), SoftBank Group (9984.JP), MIRAIT Holdings (1417.JP), Mitsui Matsushima Holdings (1518.JP), TAISEI (1801.JP), Obayashi (1802.JP), Shimizu (1803.JP), Systena (2317.JP), Suntory Beverage & Food (2587.JP), Nissin Foods Holdings (2897.JP), Toyobo Co. (3101.JP), Teijin (3401.JP), Toray Industries (3402.JP), KI-Star Real Estate (3465.JP), Nippon Sanso Holdings (4091.JP), Sumitomo Bakelite (4203.JP), Ube (4208.JP), Shionogi & Co. (4507.JP), Rohto Pharmaceutical (4527.JP), Toei Animation Co. (4816.JP), Dexerials (4980.JP), Sumitomo Rubber Industries (5110.JP), Fujimi (5384.JP), Mitsui Mining & Smelting Co. (5706.JP), Toho Zinc Co. (5707.JP), Furukawa Electric Co. (5801.JP), Fujikura (5803.JP), Rakuten Bank (5838.JP), Sanwa Holdings (5929.JP), Japan Material (6055.JP), Organo (6368.JP), Japan Elevator Service Holdings (6544.JP), Azbil Corp (6845.JP), Nihon Kohden (6849.JP), Concordia Financial Group (7186.JP), Pan Pacific International Holdings (7532.JP), TOPPAN Holdings (7911.JP), Dai Nippon Printing Co. (7912.JP), Nifco Inc (7988.JP), Iwatani (8088.JP), Yaoko Co. (8279.JP), Paltac (8283.JP), Aozora Bank (8304.JP), Fukuoka Financial Group (8354.JP), ACOM Co. (8572.JP), Tokyu Corp (9005.JP), Sankyu (9065.JP), SENKO Group Holdings (9069.JP), AZ-COM Maruwa Holdings (9090.JP), Nippon Express Holdings (9147.JP), Square Enix Holdings (9684.JP)

    • South Korea:

      • Earnings:

        • CJ CheilJedang (097950.KS), Samsung Fire & Marine Insurance Co. (000810.KS)

    • Australia:

      • Economic:

        • 11:30 AEST: NAB Business Confidence; consensus

    • New Zealand:

      • Economic:

        • 15:00 NZST: Inflation Expectations Y/Y; consensus

    • India:

      • Earnings:

        • UPL Ltd (512070.IN), Varun Beverages (540180.IN), Aditya Birla Capital (540691.IN), Karur Vysya Bank (590003.IN), Sanofi India (500674.IN), DLF Ltd (532868.IN), Tube Investments of India (540762.IN)

    • Singapore:

      • Earnings:

        • SIIC Environment Holdings (BHK.SP), EC World Real Estate Investment Trust (BWCU.SP), Thai Beverage Public (Y92.SP)

    • Taiwan:

      • Earnings:

        • ASUSTek Computer (2357.TT), PharmaEssentia (6446.TT)

    • Thailand:

      • Earnings:

        • Mega Lifesciences Public (MEGA.TB)

    • Philippines:

      • Earnings:

        • Ayala Corp (AC.PM), LT Group (LTG.PM)

  • Market Data:

    • Gold (Jun 24): ($7.60) or (0.32%) to $2367.40

    • WTI Crude (Jun 24): ($0.20) or (0.26%) to $78.06

    • $-¥: +0.01 or +0.01% to 155.7910

    • $-KRW: (1.05) or (0.08%) to 1370.1000

    • A$-$: (0.00) or (0.03%) to 0.6604

    • $-INR: +0.01 or +0.01% to 83.5461

    • $-CNY: (0.00) or (0.02%) to 7.2258

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