Jun 26 ,2024
Synopsis:
Asian markets set for negative start to Thursday trade. Futures signaling opening declines in Japan, Hong Kong and Australia. S&P 500 and Nasdaq futures lower afterhours. Bonds under pressure with Australian yields sharply higher following hawkish CPI takeaways. Yen steady near Dec-1986 lows, Aussie erased post-CPI gains as dollar index neared two-month high. Gold down to two-week low. Crude little changed. Bitcoin fading from recent highs.
MU down 8% afterhours, weighing on US index futures in post-close trade. Q4 revenue outlook just below Street consensus with management highlighting production constraints. Tech stocks finding bit of a reprieve following recent NVDA-led sell-off that drove SOX to two-week low and weighed on Asian semis. However, also thoughts weakness due more to technical factors (stretched positioning) than fundamental ones.
Yen weakness the big story in FX markets after currency fell to lowest against dollar since 1986 and hit record low vs euro. Nothing specific attributed for latest fall other than ongoing focus on Japan's yield gap with other major economies. Japan FX chief Kanda expressed "serious concern" about pace of yen's depreciation as traders continue to speculate about prospect of near-term intervention.
Fallout from hotter-than-expected Australian May CPI continued with policy sensitive 3Y yield rising 25 bp and futures moving to price in 50% chance of RBA rate hike by Sep-2024. With data heightening concerns inflation is reaccelerating, multiple economists revised their RBA rate calls to now predict a hike in August. Others acknowledged greater risk of near-term tightening and delayed projected timing of rate cut further into 2025.
Pre-open Company News:
2038.HK -- FIH Mobile CEO Chin Yu Yang to be redesignated as chairman, effective 1-Jul
300251.CH -- Beijing Enlight Media initiated buy at BOCI Securities Limited (timing uncertain)
600655.CH -- Shanghai Yuyuan Tourist Mart Group intends to sell all stakes in Kabushiki Kaisha Shinsetsu for at least ¥38.0B (CNY1.71B)
151.HK -- Want Want China Holdings upgraded to buy from hold at DBS Group
4202.JP -- Daicel downgraded to underperform from buy at BofA
2338.HK -- Weichai Power upgraded to buy from outperform at Daiwa
002821.CH -- Asymchem Laboratories (Tianjin) initiated buy at Western Securities (timing uncertain)
600157.CH -- Wintime Energy Group guides Q2 net income attributable CNY693.4-793.4M vs year-ago CNY594.0M
ENVX -- Enovix announces MOU with Elentec (054210.KS)
HLN.LN -- Haleon to divest nicotine replacement therapy business outside of the US to Dr. Reddy's for total consideration of £500M
533148.IN -- JSW Energy signs 1,325 MW wind and solar energy agreement with Solar Energy Corporation and Gujarat Urja Vikas Nigam
2618.HK -- JD Logistics upgraded to outperform from neutral at Macquarie
301269.CH -- Empyrean Technology initiated buy at China Post Securities (timing uncertain)
540115.IN -- L&T Technology Services chairman A.M Naik steps down, effective immediately
^ASIAREADS -- StreetAccount Asia Reads
On Deck:
Hong Kong:
Earnings:
EC Healthcare (2138.HK), Pacific Textiles Holdings (1382.HK), Yidu Tech (2158.HK), China Water Affairs Group (855.HK)
Japan:
Economic:
08:50 JST: Retail Sales NSA Y/Y (Preliminary); consensus +1.7%
09:30 JST: Export NSA Y/Y (Final); consensus +13.5%
09:30 JST: Import NSA Y/Y (Final); consensus +9.5%
09:30 JST: Trade Balance NSA (Final); consensus
Australia:
Economic:
11:00 AEST: Consumer Inflation Expectation; consensus
Market Data:
Gold (Aug 24): ($4.60) or (0.20%) to $2308.60
WTI Crude (Aug 24): ($0.23) or (0.28%) to $80.67
$-¥: +0.96 or +0.60% to 160.6590
$-KRW: (0.83) or (0.06%) to 1390.7600
A$-$: (0.00) or (0.01%) to 0.6646
$-INR: +0.15 or +0.18% to 83.5791
$-CNY: +0.00 or +0.01% to 7.2635
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