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StreetAccount Summary - Asian Market Preview: Nikkei Futures +1.68%, Hang Seng Futures +0.77%, ASX SPI 200 +0.38%, S&P Futures (0.08%)

Sep 19 ,2024

  • Synopsis:

    • Asia equities poised to open higher Friday. Futures in Japan, Hong Kong and South Korea all traded firmer. US contracts little changed following sharp gains in the cash session. All Japan ADRs logged gains with notable strength in Toyota (TM), Mizuho (MFG) and Sony (SONY). Golden Dragon China index rallied 4.15%. Tech leads were bullish with Nasdaq outperforming S&P 500 and a rally in SOX as market gains were led by Big Tech names. Treasuries were mixed with the curve steepening. Dollar lagged euro and sterling but stronger vs yen. Gold finished up 0.6%. Bitcoin futures were up 5.8%. WTI crude settled up 1.8%. Copper was up 1.2%, finishing at highest level since mid-July.

    • US market sentiment shifted positive after having closed lower Wednesday on the day of the Fed rate cut amid soft-landing optimism which drove a rotation into big tech/cyclicals and out of defensives. VIX fell notably. Analysts revived historical analysis showing equities tend to respond positively to the start of a rate cut cycle. Soft-landing scenario further supported by lower-than-expected initial jobless claims. However, rate cut trajectory remains a key focus as market is pricing in more aggressive easing than dot plot projections, auguring for continuation of the 25 vs 50 bp debate. Fed impacts extend to emerging Asia, fanning expectations the rate cut opens the door for easing among regional central banks, including China where yuan closed near a 16-month high vs dollar.

    • Regional attention turns to the BOJ meeting today, though widely seen remaining on hold in light of recent market volatility. Economists flagged attention on the economic assessment and Governor Ueda's press conference for reaffirmation that policy normalization remains on track. Latest polls showed continued gravitation towards December calls, though a notable proportion still sees BOJ holding off until January. China LPR fixings also due today where a majority look for cuts to both 1y and 5y rates. Elsewhere, Japan August core CPI inflation seen edging higher though likely driven mainly by higher energy prices after government subsidies expired in June. Markets cognizant of a softer phase ahead with the reintroduction of energy subsidies expected to impact the data from next month.

  • Pre-open Company News:

    • 539957.IN -- Mahanagar Gas upgraded to hold from sell at Prabhudas Lilladher

    • 1313.HK -- China Resources Building Materials Technology Holdings initiated buy at TF Securities (timing uncertain)

    • 300558.CH -- Betta Pharmaceuticals receives NMPA approval for clinical trial of CFT8919 capsules for treatment of patients with NSCLC carrying EGFR mutations

    • 1093.HK -- CSPC Pharmaceutical Group launches HK$5B share buy-back, to run for 24 months from today

    • 7459.JP -- Medipal Holdings downgraded to hold from buy at Jefferies

    • 600276.CH -- Jiangsu Hengrui Pharmaceuticals's marketing application for relafupu-α injection (SHR-1701) accepted by NMPA

    • 539448.IN -- InterGlobe Aviation downgraded to sell from hold at Investec

    • 1023.MK -- Insider transaction: CIMB Group Holdings CEO Novan Amirudin discloses disposal of 42,400 shares

    • 688271.CH -- Shanghai United Imaging Healthcare initiated buy at Huaan Securities (timing uncertain)

    • 688002.CH -- Raytron Technology chair Ma Hong released from detention by National Supervisory Commission

    • 9868.HK -- XPeng, Inc. to unveil next-gen AI powered in-car operating system at Paris Motor Show 2024

    • 532281.IN -- HCL Technologies downgraded to reduce from add at Kotak Securities

    • 2685.JP -- Adastria releases 2024 Integrated Report

    • 1121.HK -- Golden Solar, LONGi and JP-Solar establish JV to produce HBC solar cells

  • On Deck:

    • China:

      • Economic:

        • 08:00 CST: Foreign Direct Investment Y/Y; consensus

        • 09:30 CST: 1 Year Loan Prime Rate; consensus

    • Japan:

      • Economic:

        • 08:30 JST: CPI National Y/Y; consensus +3.05%

        • 08:30 JST: CPI Core National Y/Y; consensus

        • 08:30 JST: CPI ex-Fresh Food and Energy; consensus +2.8%

        • 12:00 JST: Japan Policy Rate; consensus +0.3%

    • Australia:

      • Earnings:

        • Myer Holdings (MYR.AU)

  • Market Data:

    • Gold (Dec 24): ($2.90) or (0.11%) to $2611.70

    • WTI Crude (Oct 24): +$0.05 or +0.07% to $72.00

    • $-¥: +0.60 or +0.42% to 142.8850

    • $-KRW: +6.65 or +0.50% to 1330.9700

    • A$-$: +0.00 or +0.65% to 0.6808

    • $-INR: (0.17) or (0.21%) to 83.6160

    • $-CNY: (0.01) or (0.21%) to 7.0670

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