Jun 11 ,2024
Synopsis:
Asia equities poised to open broadly softer Wednesday. Futures in Japan, Hong Kong and Australia all traded lower. Golden Dragon China index fell sharply, while Japan ADRs skewed to losses led by a selloff in Nomura (NMR). US contracts edging higher following mixed performance in cash session with S&P and Nasdaq renewing record highs. Tech leads generally positive as big names were mostly higher, Nasdaq outperformed S&P 500 and SOX edged higher. Treasuries were firmer across the curve after today's well-received 10Y auction. Dollar index was up 0.1%. Gold finished little changed. Bitcoin futures were down 3.0%, but off worst levels. WTI crude settled up 0.2%.
Narrative was on the positive side mostly attributed to Apple's (AAPL) 7% rally to record highs following WWDC, leading strength in Big Tech names. Broader focus now squarely on upcoming US CPI and FOMC meeting. CPI gains seen slowing sequentially with year-ago changes little changed at the headline and core measure edging lower. Consensus largely coalesced on Fed remaining on hold until at least September though keyfocus will be on whether the median dot for 2024 shifts down to two or just one rate cut from the three seen at the March meeting.
US-China tech frictions returned to fore on a report the Biden administration mulling further access restrictions on latest chip technology used for AI. Meanwhile, press reported at least half of Japan's chipmaking equipment exports shipped to China for a third straight quarter in Q1. Prompted thoughts this could only be partly driven by last-minute demand as Japan implemented its own China restrictions on cutting edge chipmaking equipment and seen as more of a reflection of orders for less advanced technology falling outside scope of trade curbs. Main regional macro event set to be China inflation data, expected to show a marginal pickup in CPI and narrower declines in PPI.
Pre-open Company News:
2207.TT -- Hotai Motor reports May consolidated revenue NT$24.82B, +3.8% y/y
EU sector highlights - miners, banks and real estate biggest decliners; retail and chemicals holding up better:
532523.IN -- Biocon appoints Mukesh Kamath as interim CFO, effective immediately
2615.TT -- Wan Hai Lines reports May revenue NT$11.45B, +40.1% y/y
3702.TT -- WPG Holdings reports May revenue NT$67.29B, +25.2% y/y
2609.TT -- Yang Ming Marine Transport reports May revenue NT$16.92B, +46.2% y/y
Hong Kong stock connect daily turnover
388.HK -- Hong Kong Exchanges & Clearing May activity
2412.TT -- Chunghwa Telecom reports May revenue NT$18.08B; StreetAccount notes year-ago figure was NT$17.73B
6968.HK -- Ganglong China Property Group reports Jan-May contracted sales CNY2.26B; StreetAccount notes year-ago figure CNY5.60B
603305.CH -- Ningbo Xusheng Group launches CNY2.8B convertible bond issuance due 2030
002568.CH -- Shanghai Bairun Investment Holding Group completes CNY100-200M share buyback announced in Dec 2023
532477.IN -- Union Bank of India board approves to raise up to INR60B through share secondaries
512.HK -- Grand Pharmaceutical Group completes enrolment of first patient in GPN00884 ophthalmic drug trial
2186.HK -- Luye Pharma Group receives NMPA marketing approval for Meibirui (paliperidone palmitate) long-acting injectable antipsychotic
On Deck:
China:
Economic:
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: Foreign Direct Investment Y/Y; consensus
08:00 CST: New Yuan Loans; consensus
08:00 CST: M2 NSA Y/Y; consensus
09:30 CST: CPI NSA Y/Y; consensus +0.4%
09:30 CST: PPI NSA Y/Y; consensus (1.5%)
Japan:
Economic:
08:50 JST: Domestic CGPI NSA Y/Y; consensus
South Korea:
Economic:
08:00 KST: Unemployment Rate; consensus
Market Data:
Gold (Aug 24): +$6.30 or +0.27% to $2332.90
WTI Crude (Jul 24): +$0.29 or +0.37% to $78.19
$-¥: +0.12 or +0.07% to 157.1540
$-KRW: +0.44 or +0.03% to 1375.1900
A$-$: (0.00) or (0.08%) to 0.6607
$-INR: +0.11 or +0.13% to 83.5961
$-CNY: (0.00) or (0.02%) to 7.2467
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