Jun 10 ,2024
Synopsis:
Asia equities poised to open mostly positive Tuesday. Japan futures advanced, finishing around session highs as almost all ADRs logged gains. Golden Dragon China index rose moderately with mainland China, Hong Kong set to resume trading, but Australia lagged. US contracts edging lower following broad gains overnight. Tech leads were positive with Nasdaq outperforming S&P 500 alongside sharp gains in SOX. Treasuries were mostly weaker with curve steepening. Dollar index was up 0.2%. Gold finished up 0.1%. Bitcoin futures were up 0.3%. WTI crude settled up 2.9% attributed to general optimism toward summer demand.
No major catalysts overnight as markets look ahead to Wednesday's US CPI and FOMC meeting. Recall that markets pared Fed rate cut projections again on the back of stronger than expected nonfarm payrolls, and now imply 50% probability of a September move. Consensus forecasts indicated some division over the dot plot would indicate one or two cuts on the horizon. Tech in focus with Apple (AAPL) unveiling its AI strategy at the WWDC, though no major surprises. European equities logged moderate declines and euro lagged among major currencies amid European Parliament election results though with no meaningful spillover into US markets.
Asia developments similarly light. Following Japan Q1 GDP revisions, economists reaffirmed expectations for a solid rebound in Q2 growth, though largely owing to technical payback from temporary Q1 drags. Concerns over lackluster private demand continues. Latest government economic blueprint leaks indicated retention of a best-efforts aim to achieve primary fiscal balance in FY25. Japan share buybacks remain a key market tailwind with activity surging in H1 this year. Regional attention looking ahead to China data -- new loans seen rebounding sequentially but outstanding growth still slowing, CPI inflation expected to remain steady with narrowing decline in PPI.
Pre-open Company News:
4452.JP -- Kao releases 2024 sustainability report
6752.JP -- Panasonic downgraded to neutral from outperform at Macquarie
8058.JP -- Rio Tinto to acquire Mitsubishi's 11.65% stake in Boyne Smelters, terms undisclosed
540133.IN -- ICICI Prudential Life Insurance reports May APE INR7.05B, +51.3% y/y
NAM.AU -- Olam Agri extends offer for Namoi Cotton to 16-Jul vs prior 18-Jun
576.HK -- Zhejiang Expressway subsidiary acquires additional 7.4% stake in Guodu Securities for CNY1.13B
532134.IN -- Bank of Baroda releases 2023-24 sustainability report
9961.HK -- Trip.com Group completes $1.5B offering of convertible senior notes
2881.TT -- Fubon Financial Holding reports May PBT NT$18.17B; StreetAccount notes year-ago figure was NT$4.25B
600157.CH -- Wintime Energy Group senior management to purchase 12-14M shares on market from 11-Jun to 10-Jul
5803.JP -- Fujikura downgraded to neutral from buy at Mizuho Securities
4151.JP -- Kyowa Kirin to invest up to $530M (¥83.18B) in construction of new biological manufacturing plant in Stanford, North Carolina
TMUS -- Deutsche Telekom is acquiring roughly 6.7M additional shares in T Mobile US from Softbank by exercising options at fixed price of $99.51/share
5347.TT -- Vanguard International Semiconductor downgraded to neutral from buy at UBS
On Deck:
China:
Economic:
08:00 CST: M2 NSA Y/Y; consensus
08:00 CST: New Yuan Loans; consensus
08:00 CST: Loan Growth Y/Y; consensus
Australia:
Economic:
11:30 AEST: NAB Business Confidence; consensus
Market Data:
Gold (Aug 24): ($0.10) or (0.00%) to $2326.90
WTI Crude (Jul 24): +$0.32 or +0.41% to $78.06
$-¥: +0.43 or +0.27% to 157.0400
$-KRW: (5.68) or (0.41%) to 1373.8800
A$-$: +0.00 or +0.36% to 0.6606
$-INR: +0.00 or +0.00% to 83.5299
$-CNY: (0.00) or (0.01%) to 7.2468
If you would like to receive the Asian Market Preview daily, please search for Asia Pre-Market Updates in Alert Manager.
This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
Please refer to "Terms Of Use".
DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE