Jan 16 ,2025
Synopsis:
Asian markets set for mixed start to Friday trade. Futures signaling opening declines in Japan and Hong Kong. ASX flat in initial trade. S&P 500 futures steady afterhours. Australian bond yields extending move lower after Treasuries firmed for a second session. FX markets steady with dollar remaining lower post-CPI. Crude flat following 1% decline overnight. Gold also unchanged. Bitcoin flat near $100K.
Tech-led retreat on US markets overnight where economic data was a focus following retail sales miss, uptick in initial jobless and claims and surge in Philly Fed index. Still some positive sentiment surrounding cooler core CPI with markets bringing forward expected Fed rate cut to H1 and Fed Governor Waller noting possibility of more rate cuts than markets pricing in. Elsewhere,Treasury Secretary nominee Bessent's confirmation hearing didn't move the needle.
China Q4 GDP growth forecast to have rebounded, meeting government's annual growth target. December activity indicators due out with retail sales growth forecast to have increased though no change expected fixed asset investment and industrial production growth. Comes after December manufacturing PMI softened with deflation pressures persisting. Attention also on property metrics, particularly new home prices, real estate investment and housing sales, following recent scrutiny on struggling property developers.
More economists anticipating January BOJ rate hike following recent remarks by Governor Ueda and Deputy Governor Himino that such a move will be discussed next week. Bloomberg source report also noted officials see good chance of rate hike next weekamid growing confidence on inflation and wages. Yen now trading near one-month high against dollar while sharp rise in JGB yields over January has narrowed spread to Treasuries.
In corporate news, Bloomberg sources reported GLEN.LN and RIO.LN held preliminary talks about merger. TSMC (2330.TT) rallied 4% in US amid positive takeaways from Q4 earnings, which included another bottom line beat while Q1 and FY25 revenue topped expectations with AI revenue forecast to double this year. Nintendo (7974.JP) announced will showcase Switch 2 console in April. Reliance Industries (500325.IN) Q4 earnings revealed slight bottom line beat.
Pre-open Company News:
9969.HK -- InnoCare Pharma guides FY net income attributable (CNY443.0M) vs FactSet (CNY501.9M) [8 est, (CNY568.9)-(397.3M)]
590.HK -- Luk Fook Holdings (International) reports Q3 retail same store sales growth (22%) y/y
2412.TT -- Chunghwa Telecom partners with Microelectronics Technology to secure place as recipient of U.S. National Telecommunications & Information Administration NOFO2 program
535755.IN -- Aditya Birla Fashion & Retail approves opening of previously disclosed fund raise via QIP with a floor price of INR 271.28 per share
2871.JP -- Nichirei initiated neutral at JPMorgan (earlier, timing uncertain)
500251.IN -- Trent Ltd initiated buy at Elara Capital
325.HK -- Bloks Group initiated overweight at Industrial Securities
C09.SP -- City Developments completes sale of Ransome's Wharf site in South West London for £69.1M (SG$115.3M)
600699.CH -- Ningbo Joyson Electronic files for Hong Kong IPO through CICC, UBS
523704.IN -- Mastek reports Q3 consolidated net income attributable INR947.1M, +26% vs year-ago INR753.2M
603868.CH -- Shanghai Flyco Electrical Appliance guides FY net income attributable CNY464.4M vs year-ago CNY1.02B
000591.CH -- CSRC approves CECEP Solar Energy's proposed issuance of CNY2.95B six-year convertible bond
813.HK -- Shimao Group Holdings receives High Court order to convene meeting for scheme creditors
1402.TT -- Far Eastern New Century reports cyberattack on key manufacturing partner
002653.CH -- Haisco Pharmaceutical Group's investigational new drug application for HSK41959 tablet accepted by NMPA
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
10:00 CST: Industrial Output NSA Y/Y; consensus +5.4%
10:00 CST: GDP NSA Y/Y; consensus +4.9%
10:00 CST: Retail Sales NSA Y/Y; consensus +3.5%
South Korea:
Earnings:
Samsung E&A Co. (028050.KS)
India:
Earnings:
Tech Mahindra (532755.IN), ICICI Lombard General Insurance (540716.IN)
Malaysia:
Economic:
23:00 EST: GDP NSA Y/Y (Preliminary); consensus +4.7%
Market Data:
Gold (Feb 25): ($6.30) or (0.23%) to $2744.60
WTI Crude (Feb 25): +$0.07 or +0.09% to $78.75
$-¥: (1.17) or (0.75%) to 155.3000
$-KRW: +1.27 or +0.09% to 1457.8100
A$-$: (0.00) or (0.34%) to 0.6207
$-INR: +0.17 or +0.20% to 86.5989
$-CNY: (0.00) or (0.00%) to 7.3310
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