Jul 25 ,2024
Synopsis:
Asian markets set for mixed start to Friday trade. Futures signaling opening gains in Hong Kong and Australia. Nikkei futures flat with index down 10% from peak. S&P 500 futures nudging higher after US indexes came off lows following stronger-than-expected GDP. Australian bonds rallying after Treasury curve bear flattened. Gold flat after retreating to three-week low. Crude steady after turning earlier losses into gain. Bitcoin up from one-week low.
Yen volatility continued with currency rallying to highest against dollar since early May. Yen volatility reverberating across markets with Nikkei falling into correction while corresponding pickup in risk aversion weighing on metals, Bitcoin and FX risk proxies such as Aussie. Hawkish BOJ rate repricing contrasting with pickup in Fed easing expectations, corresponding with a narrowing of US-Japan yield gap and unwind of carry trades.
Tokyo CPI showed in-line rise in core inflation to 2.2% from 2.1%. Comes day after figures showed services PPI inflation topped 3% for first time since 2015. Nikkei the latest to note some BOJ board members in favor of tightening at next week's meeting, though soft consumption underpinning counterviews BOJ should wait in order to monitor wage and consumption trends. Futures pricing in ~70% chance of BOJ rate hike next week.
US PCE index forecast to show little change in core measure near lowest since Nov-2020. Follows cooler than expected June CPI print and softness in components of PPI that feed into PCE, contributing to this month's pickup in dovish rate expectations. Hotter-than-expected US GDP showed rise in core PCE inflation, risking upward revisions to estimates for Friday's print. However, market still eyeing September rate cut.
Pre-open Company News:
600867.CH -- Tonghua Dongbao Pharmaceutical completes dosing of first patient in Phase Ib trial of THDBH120 to treat obesity
3443.TT -- Global Unichip reports Q2 EPS NT$6.78 vs FactSet NT$6.40 [14 est, NT$5.44-6.94]
540222.IN -- Laurus Labs reports Q1 consolidated net income attributable INR125.1M, (50%) vs year-ago INR248.5M
540133.IN -- ICICI Prudential Life Insurance downgraded to add from buy at ICICI Securities
4707.MK -- Nestle (Malaysia) reports Q2 EPS 39.9sen vs year-ago 77.2sen
533206.IN -- SJVN receives letter of intent from India's Mizoram goverment for Darzo Lui Pumped Storage Project
6639.HK -- Arrail Group releases sustainability report
1797.HK -- East Buy Holding launches up to CNY500M on-market share buyback to run for one year under general mandate
532175.IN -- Cyient reports Q1 consolidated EPS INR12.98 vs year-ago INR15.20
ME8U.SP -- Mapletree Industrial Trust reports Q1 adjusted net income SG$97.3M, +2% vs year-ago SG$95.2M
6955.HK -- Shandong Boan Biotechnology'receives NMPA approval for clinical trial of BA1302 for injection in treatment of advanced solid tumors
500469.IN -- Federal Bank Ltd (India) upgraded to buy at Systematix Institutional Research
600673.CH -- Guangdong HEC Technology Holding proposes CNY200-400M on-market buyback, to run for six months
500260.IN -- The Ramco Cements guides FY25 capex INR12.00B vs prior guidance INR17.00B and FactSet INR11.99B
853.HK -- MicroPort Scientific guides H1 net income attributable ($105-125M) vs year-ago ($219.9M)
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
Hong Kong:
Earnings:
PCCW Ltd (8.HK)
Japan:
Economic:
14:00 JST: Leading Index (Final); consensus
Earnings:
SMS Co. (2175.JP), Shin-Etsu Chemical (4063.JP), Nitto Denko (6988.JP), SCREEN (7735.JP), SG Holdings (9143.JP), M3 (2413.JP), Hulic Co. (3003.JP), Tokuyama (4043.JP), Tokyo Steel Manufacturing (5423.JP), Hitachi Construction Machinery (6305.JP), Tsubakimoto Chain (6371.JP), KEYENCE (6861.JP), Daishi Hokuetsu Financial Group (7327.JP), Juroku Financial Group (7380.JP), The 77 Bank (8341.JP), The Shiga Bank (8366.JP), The Awa Bank (8388.JP), Fuyo General Lease (8424.JP), Okasan Securities Group (8609.JP), Monex Group (8698.JP), MISUMI Group (9962.JP)
South Korea:
Earnings:
Shinhan Financial (055550.KS), Hana Financial (086790.KS)
India:
Earnings:
Sanofi India (500674.IN), City Union Bank (532210.IN), Power Grid Corp. of India (532898.IN), Cholamandalam Investment & Finance (511243.IN), Amber Enterprises India (540902.IN), KFin Technologies (543720.IN)
Singapore:
Earnings:
Keppel DC REIT (AJBU.SP), Keppel Infrastructure Trust (A7RU.SP), Parkway Life REIT (C2PU.SP)
Taiwan:
Earnings:
Advantech (2395.TT)
Market Data:
Gold (Aug 24): +$8.00 or +0.34% to $2361.50
WTI Crude (Sep 24): +$0.02 or +0.03% to $78.30
$-¥: (0.37) or (0.24%) to 153.5260
$-KRW: (0.96) or (0.07%) to 1382.6700
A$-$: (0.00) or (0.60%) to 0.6540
$-INR: (0.01) or (0.01%) to 83.7399
$-CNY: (0.03) or (0.45%) to 7.2301
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