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StreetAccount Summary - Asian Market Preview: Nikkei Futures +1.75%, Hang Seng Futures +2.79%, ASX SPI 200 +0.23%, S&P Futures +0.03%

Sep 26 ,2024

  • Synopsis:

    • Asia equities poised to extend gains Friday. Futures in Japan, Hong Kong and Australia traded higher. Notably, Golden Dragon China index jumped 10.85%. All Japan ADRs logged gains. US futures were slightly firmer following moderate gains in cash session. Tech leads positive with Nasdaq outperforming S&P 500 and a sharp rise in SOX, though Big Tech names were mixed. Treasuries mostly weaker with curve flattening. Dollar index down 0.4%. Gold finished up 0.4%. Bitcoin futures up 3%. WTI crude settled down 2.9% on a report Saudis ready to scrap its unofficial $100 target. Copper ended up 3.3% amid latest China stimulus reports.

    • Overnight strength was largely attributed to follow-through momentum following Micron Technology (MU) earnings, fueling AI plays. Latest US macro data also supportive with most of the attention going to lower than expected initial jobless claims. While labor market debate continues given the hiring slowdown, broader signs of economic resilience further dampened speculation of another upsized Fed rate cut, in turn contributing to higher Treasury yields. Meanwhile, global sentiment broadly positive on central bank easing on the back of latest cuts by SNB and Bank of Mexico. Press added indications ECB doves preparing to push for a cut next month. Also attracting attention was another report indicating Saudis ready to surrender its unofficial $100B oil price target, sending oil prices sharply lower with positive macro implications.

    • In regional developments, overnight takeaways from China Politburo guidance were positive, taken as a meaningful signal of a policy pivot towards stronger fiscal support. Followed skepticism that preceding suite of stimulus announcements would be enough to restore confidence in the government growth target as economists noted fiscal measures were lacking. Subsequently, media sources said China plans to issue about CNY2T ($284B) in special sovereign bonds this year with half going to consumption support programs and the rest to aid local government debt. Optimism was reinforced by indications China considering a CNY1T capital injection into major banks, also said to be funded mainly by sovereign debt.

    • Main focus in Asia turns to Japan's LDP leadership election seen as a close race between the three top candidates. Results expected around 15:40 JST. Japan markets have recently grappled with a Takaichi victory risk scenario which may have the most market impact given her opposition to a near-term BOJ rate hike combined with a dovish fiscal stance. On data, September Tokyo core CPI inflation eased as expected amid the reintroduction of government energy subsidies. August China industrial profits due for release after last month's data showed the strongest growth since February and prior softness had been widely cited as affirmation of deflationary pressures.

  • Pre-open Company News:

    • 7701.JP -- Shimadzu initiated neutral at UBS

    • 4911.JP -- Shiseido upgraded to hold from underperform at Jefferies

    • 600416.CH -- Xiangtan Electric Manufacturing chairman Zhou Jianjun, GM Zhang Yuelei resign due to work arrangements, effective immediately

    • 532555.IN -- NTPC Ltd unit NTPC Green Energy enters JV to develop 10GW of renewable energy projects in Maharashtra or other Indian states

    • 1083.HK -- Towngas Smart Energy to merge JV companies, increasing market influence in Jinan City

    • 2196.HK -- Shanghai Fosun Pharmaceutical (Group) Co. completes CNY100-200M A-share buyback announced in March

    • 4716.JP -- Street Takeaways - Oracle Corp Japan Q1 Earnings

    • BKV -- BKV Corp. IPO opens at $18.55 on the NYSE

    • 002460.CH -- Ganfeng Lithium Group, Nanjing Public Utilities Development, Nanjing Environment Group form EV battery JV

    • 523704.IN -- Mastek appoints Umang Nahata as CEO for up-to-twelve months, effective 10-Aug

    • 543278.IN -- Kalyan Jewellers India promoter completes acquisition of 24.3M shares from Highdell Investments; deal announced 21-Aug

    • 532461.IN -- Punjab National Bank completes QIP at issue price INR103.75/share

    • 500257.IN -- Lupin Ltd initiated sell at UBS

    • 8012.JP -- Nagase & Co. releases 2024 Integrated Report

    • 83.HK -- Sino Land releases sustainability report 2024

  • On Deck:

    • Japan:

      • Economic:

        • 08:30 JST: CPI Tokyo Y/Y; consensus

      • Earnings:

        • DCM Holdings (3050.JP)

    • Australia:

      • Earnings:

        • GreenX Metals (GRX.AU)

  • Market Data:

    • Gold (Dec 24): ($0.30) or (0.01%) to $2694.60

    • WTI Crude (Nov 24): ($0.20) or (0.30%) to $67.47

    • $-¥: +0.31 or +0.21% to 145.0650

    • $-KRW: (25.51) or (1.91%) to 1310.6000

    • A$-$: +0.01 or +1.06% to 0.6895

    • $-INR: (0.02) or (0.02%) to 83.6117

    • $-CNY: (0.02) or (0.34%) to 7.0091

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