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StreetAccount Summary - Asian Market Preview: Nikkei Futures +0.20%, Hang Seng Futures +0.57%, ASX SPI 200 (0.10%), S&P Futures (0.02%)

May 13 ,2024

  • Synopsis:

    • Asia equities poised to open on the firmer side Tuesday. Futures in Japan and Hong Kong were higher, while Australia marginally softer. US contracts marginally lower following mixed cash session that ended with Nasdaq outperforming S&P 500. Other tech leads were also positive with Golden Dragon China index rallying 3.74% while SOX rose 0.31%. Japan ADRs skewed to losses. Treasuries were firmer across the curve, though ended off best levels. Dollar index was down 0.1% (though greenback stronger vs the yen). Gold finished down 1.3%. Bitcoin futures were up 4.0%. WTI crude settled up 1.1%.

    • Quiet start to the week in the US as markets look ahead to PPI data before Wednesday's CPI amid expectations of moderating inflation. Asia developments were concentrated in China. Finance ministry confirmed media leaks of plans to commence sales of the CNY1T ultra-long special treasury bonds from Friday, marking the start of three tranches to be completed by mid-November. MOF also reaffirmed such issuance would continue over the "next several years." Also, notable reverberations after BOJ's downsized JGB purchase operation Monday, which was seen as a genuine surprise, stoking further QT speculation with expectations of some formal announcement at the June MPM.

    • Japan earnings have so far shown notable strength in manufacturing results with FY profits on track to post new record highs. Amid attention on major nonmanufacturing names, SoftBank (9984.JP) returned to profit in fiscal Q4, contributing to a sharp narrowing in FY net losses. Vision Fund swung to profits on the back of tech strength. Main drag was valuation losses on Alibaba (BABA) as SoftBank has shed almost all of its stake and pivoted to Arm as part of broader AI aspirations. Banks in the spotlight with SMFG (8316.JP) results due today and most of the attention on FY24 guidance topping JPY1T ($6.42B). Three megabanks projected to post record combined net profit for FY23.

    • Main regional event today will be Australia's 2024/25 federal budget announcement set for 7:30 pm AEST. Government set to announce a back-to-back surplus for the first time since the early 2000s, though revised Stage-3 tax cuts and additional inflation relief measures seen adding to inflationary pressures. Latest attention on unusual pre-release of government inflation forecasts that were lower than RBA projections, prompting some thoughts this poses indirect pressure on RBA for a rate cut before the next federal election in May 2025.

  • Pre-open Company News:

    • 543320.IN -- Zomato reports Q4 consolidated EPS INR0.20 vs FactSet INR0.21 [9 est, INR0.15-0.30]

    • 590003.IN -- Karur Vysya Bank reports Q4 EPS INR5.67 vs FactSet INR4.63 [3 est, INR4.20-5.30]

    • 1913.HK -- Prada initiated overweight at TF Securities (timing uncertain)

    • IVL.TB -- Indorama Ventures Public declares interim dividend THB0.175/share

    • 6060.HK -- ZhongAn Online P&C Insurance reports 1-Jan to 30-Apr gross written premiums CNY9.70B

    • 506395.IN -- Coromandel International increases stake in Dhaksha Unmanned Systems from 51% to 58% for INR1.50B

    • 4503.JP -- Astellas Pharma to present new data across oncology portfolio at 2024 ASCO Annual Meeting

    • 511218.IN -- Shriram Finance to sell stake in Shriram Housing Finance to Warburg Pincus at INR46.30B valuation

    • AAV.TB -- Asia Aviation Public reports Q1 net income attributable (THB409.1M) vs FactSet (THB479M) [2 est, (THB1.06)-100M]

    • 601628.CH -- China Life Insurance reports Jan-Apr premium income of CNY371.2B, +3.9% y/y

    • 9914.TT -- Merida Industry reports Q1 EPS NT$1.39 vs FactSet NT$1.42 [8 est, NT$0.91-1.92]

    • 603596.CH -- Bethel Automotive Safety Systems adjusts max. repurchase price to CNY 64.35/sh from CNY 90.43/sh following its 2023 profit distribution plan.

    • 500295.IN -- Vedanta board to consider proposal to raise funds by issue of shares or convertible bonds on 16-May

    • 1618.HK -- Metallurgical Corp. of China reports Jan-Apr new contracts signed CNY410.89B, (2.5%) y/y

  • On Deck:

    • China:

      • Economic:

        • 08:00 CST: Foreign Direct Investment Y/Y; consensus

    • Hong Kong:

      • Earnings:

        • MINISO Group Holding (9896.HK)

    • Japan:

      • Economic:

        • 08:50 JST: Domestic CGPI NSA Y/Y; consensus

      • Earnings:

        • Kajima (1812.JP), JGC Holdings (1963.JP), Yakult Honsha Co. (2267.JP), SOHGO SECURITY SERVICES (2331.JP), Sapporo Holdings (2501.JP), Isetan Mitsukoshi Holdings (3099.JP), Iida Group Holdings (3291.JP), NEXON Co. (3659.JP), Dentsu Group (4324.JP), Sumitomo Pharma (4506.JP), Terumo (4543.JP), PeptiDream (4587.JP), Rakuten Group (4755.JP), Konica Minolta (4902.JP), Idemitsu Kosan (5019.JP), ENEOS (5020.JP), Ebara Corp (6361.JP), NTN Corp (6472.JP), ULVAC, Inc. (6728.JP), Sony (6758.JP), Casio Computer Co. (6952.JP), Medipal Holdings (7459.JP), Zensho Holdings (7550.JP), Hankyu Hanshin Holdings (9042.JP), TBS Holdings (9401.JP), Nissui (1332.JP), INPEX Corp (1605.JP), Hazama Ando (1719.JP), UT Group (2146.JP), Morinaga Milk Industry (2264.JP), Asahi Group Holdings (2502.JP), McDonald's Holdings (2702.JP), Alfresa Holdings (2784.JP), Nichirei (2871.JP), Unitika (3103.JP), Kuraray (3405.JP), Oji (3861.JP), RAKUS Co. (3923.JP), Adeka (4401.JP), JustSystems (4686.JP), The Yokohama Rubber Co. (5101.JP), Toyo Tire (5105.JP), Sumitomo Osaka Cement Co. (5232.JP), Taiheiyo Cement (5233.JP), Daiki Aluminium Industry (5702.JP), Mitsubishi Materials (5711.JP), Miura Co. (6005.JP), AMADA Co. (6113.JP), SMC Corp (6273.JP), MCJ Co. (6670.JP), Horiba (6856.JP), JEOL Ltd (6951.JP), MITSUI E&S Co. (7003.JP), Isuzu Motors (7202.JP), Pigeon (7956.JP), GOLDWIN (8111.JP), Sanrio (8136.JP), Marui Group Co. (8252.JP), Resona (8308.JP), Sumitomo Mitsui Trust Holdings (8309.JP), Mizuho Leasing (8425.JP), Tokyo Century (8439.JP), Odakyu Electric Railway Co. (9007.JP), Nitori Holdings (9843.JP)

    • South Korea:

      • Earnings:

        • CJ CheilJedang (097950.KS), Samsung Fire & Marine Insurance Co. (000810.KS), MERITZ Financial Group (138040.KS)

    • Australia:

      • Earnings:

        • CSR (CSR.AU)

    • India:

      • Earnings:

        • Siemens (500550.IN), Zydus Wellness (531335.IN), Bharti Airtel (532454.IN), AIA Engineering (532683.IN), Devyani International (543330.IN), Patanjali Foods (500368.IN), Shree Cement (500387.IN), Colgate-Palmolive (India) (500830.IN), Apollo Tyres (500877.IN), Bharti Hexacom (544162.IN)

    • Singapore:

      • Earnings:

        • Bumitama Agri (P8Z.SP), Sasseur REIT (CRPU.SP)

    • Taiwan:

      • Earnings:

        • Hon Hai Precision Industry (2317.TT), Evergreen Marine (2603.TT), Taiwan Mobile (3045.TT), Inventec (2356.TT)

    • Thailand:

      • Earnings:

        • Electricity Generating Public (EGCO.TB), Land & Houses Public Co. (LH.TB)

    • Philippines:

      • Earnings:

        • Jollibee Foods (JFC.PM), Converge Information & Communications Tech Solutions (CNVRG.PM), Puregold Price Club (PGOLD.PM), Globe Telecom (GLO.PM)

  • Market Data:

    • Gold (Jun 24): +$0.50 or +0.02% to $2343.50

    • WTI Crude (Jun 24): $0.00 or 0.00% to $79.12

    • $-¥: +0.41 or +0.26% to 156.1930

    • $-KRW: (7.36) or (0.54%) to 1363.7900

    • A$-$: +0.00 or +0.02% to 0.6607

    • $-INR: (0.03) or (0.03%) to 83.5057

    • $-CNY: +0.01 or +0.07% to 7.2323

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