Jul 11 ,2024
Synopsis:
Asian markets set for mixed start to Friday trade. Nikkei futures pointing to sharp opening declines while Hang Seng and ASX futures signaling gains. US contracts flat following big rotation out of tech and into small caps overnight. Australian and New Zealand yield curves flattening following Treasury rally in wake of soft US CPI. Yen giving back some gains following overnight spike amid intervention speculation. Gold reached late May highs. Crude also settled higher. Bitcoin flat.
Cooler-than-expected US CPI added momentum behind disinflation trajectory after monthly headline print recorded first drop since Jul-2022 and core inflation unexpectedly decelerated. Data firmed expectations of a September rate cut with markets also pricing in chance of third cut by year-end. US PPI later Friday, expected to show pickup in core measure. Attention will also be on PPI components that feed into Fed's preferred PCE index.
Overnight spike in yen came after unsourced Japan media reports noted MOF intervened to support currency. Japan FX chief Kanda did not confirm or deny intervention, echoing past comments depreciation not in line with fundamentals. However, also thoughts yen rebound a function of broader dollar weakness in wake of soft US CPI, accentuated by extreme bearish yen positioning.
China export growth forecast to have edged up from May's 7.6% y/y increase to highest since early 2023. Some thought pace of growth will be influenced by low base year effects and western importers front-loading purchases ahead of tariff hikes. Import growth also forecast to have increased, though at a weak pace amid signs domestic demand decelerated over Q2.
Pre-open Company News:
8869.MK -- Press Metal Aluminium completes swap of PT BAI stake for NAIHL stake; deal was announced on 20-Jun
030200.KS -- KT downgraded to neutral from buy at Goldman Sachs
002064.CH -- Huafon Chemical initiated overweight at Guotai Junan (timing uncertain)
1093.HK -- NMPA approves China trial of CSPC Pharmaceutical's mRNA respiratory syncytial virus vaccine SYS6016
002299.CH -- Fujian Sunner Development reports June revenue CNY1.52B, (2.5%) y/y
300394.CH -- Suzhou TFC Optical Communication initiated buy at Kaiyuan Securities (timing uncertain)
600688.CH -- Sinopec Shanghai Petrochemical guides H1 CAS net income attributable CNY24.6-36.9M vs year-ago (CNY988.3M)
688779.CH -- Hunan Changyuan Lico to change its name to Minmetals New Energy Materials (Hunan) Co.
605499.CH -- Eastroc Beverage (Group) upgraded to buy at Everbright Securities (timing uncertain)
600547.CH -- Shandong Gold Mining receives mining permit for Yanshan mining area
600029.CH -- China Southern Airlines guides H1 CAS net income attributable (CNY1.06-1.58B) vs year-ago (CNY2.88B)
603786.CH -- Keboda Technology guides H1 net income attributable CNY358.0-385.0M vs year-ago CNY275.5M
3008.TT -- LARGAN Precision downgraded to neutral from outperform at Macquarie
532540.IN -- Tata Consultancy Services reports Q1 consolidated EPS INR33.28 vs StreetAccount INR33.09
SIRI.TB -- Sansiri Public initiated buy at BofA
On Deck:
China:
Economic:
08:00 CST: Export Y/Y; consensus +8%
08:00 CST: New Yuan Loans; consensus
08:00 CST: M2 NSA Y/Y; consensus
08:00 CST: Loan Growth Y/Y; consensus
08:00 CST: Trade Balance NSA; consensus +$85B
08:00 CST: Import Y/Y; consensus +3%
08:00 CST: Foreign Direct Investment Y/Y; consensus
Japan:
Economic:
13:30 JST: Industrial Production SA M/M (Final); consensus
Earnings:
COSMOS Pharmaceutical (3349.JP), Money Forward (3994.JP), West Holdings (1407.JP), Pasona Group (2168.JP), Lawson (2651.JP), Bic Camera (3048.JP), create restaurants holdings (3387.JP), Takeuchi Mfg. (6432.JP), Ryohin Keikaku (7453.JP), IDOM Inc (7599.JP), AEON Co. (8267.JP), Shochiku (9601.JP)
Singapore:
Economic:
08:00 SST: GDP NSA Y/Y (Preliminary); consensus +2.7%
Market Data:
Gold (Aug 24): ($2.20) or (0.09%) to $2419.70
WTI Crude (Aug 24): +$0.32 or +0.39% to $82.94
$-¥: (2.27) or (1.40%) to 159.3840
$-KRW: (13.29) or (0.96%) to 1370.6700
A$-$: +0.00 or +0.15% to 0.6757
$-INR: +0.01 or +0.01% to 83.5077
$-CNY: (0.02) or (0.29%) to 7.2550
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