Apr 15 ,2025
Synopsis:
Asia equities poised for a mostly softer open Wednesday. Firmer Japan futures contrasted with declines in Hong Kong and mainland China while Australia edged lower. Japan ADRs skewed to gains led by banks while Golden Dragon China index fell. US futures extending cash session losses. Tech leads were mixed; SOX index rose 0.78%, Mag 7 mostly lower -- Nvidia (NVDA) was the main bright spot though selling off after hours on expected costs from H20 export curbs -- while other big tech names were mostly higher. Treasuries advanced further after Monday's major rebound. Dollar index was up 0.5%. Gold finished up 0.4%. Bitcoin futures were down 1.2%. WTI crude settled down 0.3%.
Overnight equities described as generally sluggish though amid further semblance of stabilization in broader financial markets following last week's volatility. Relative calm seen more a reflection of investors awaiting the next major catalyst rather than diminishing uncertainties. Tariff sentiment leaned bearish on latest developments, as recent indications of Trump flexibility was outweighed by lack of progress on deals with China and EU. Ongoing concerns were cited for dilution of positive headline effects from bank earnings. Breaking headlines added to negative signals for the Asia session -- Trump launched a probe to evaluate the need for levies on critical minerals to take the place of reciprocal tariffs. Nvidia warned US restrictions of H20 chip exports to China would cost $5.5B in fiscal Q1.
Regional attention turns to China data, expected to show slower Q1 GDP growth with March activity data mostly steady. Some mixed discussions on how the markets will react. While in-line results would appear relatively resilient, indicators through Q1 now seen as backward-looking, preceding the US reciprocal tariffs announced in April, and outlook narrative has since skewed bearish. Also, recent China data have been assessed in terms of stimulus implications as markets continue to hope for additional fiscal support to supplement monetary easing expectations. Elsewhere, BOJ Governor Ueda said in a local press interview that economic developments have moved towards the pessimistic scenario and suggested the potential need for policy support if US tariff policies weigh on the economy. Japan ruling coalition reportedly set to delay formulation of an FY25 extra budget, opting to lean on existing provisions in the meantime. Reuters Tankan survey showed a bounce in current conditions though most of the attention went to the softer outlook.
Pre-open Company News:
500209.IN -- StreetAccount Consensus Metrics Preview - Infosys Q4 Earnings
541729.IN -- StreetAccount Consensus Metrics Preview - HDFC Asset Management Q4 Earnings
JGS.PM -- JG Summit Holdings releases 2024 sustainability report
SM.PM -- SM Investments releases 2024 sustainability report
601877.CH -- Zhejiang Chint Electrics to launch CNY270-540M buyback at not more than CNY35.56/share
3036.TT -- WT Microelectronics declares FY dividend NT$6/share; StreetAccount notes year-ago figure was NT$1.8/share.
605499.CH -- Eastroc Beverage (Group) releases sustainability report
005380.KS -- Hyundai Motor to set up waste-to-hydrogen project in West Java, Indonesia, with Pertamina
500271.IN -- Max Financial Services CFO Amrit Singh to step down upon completion of term, effective 30-Apr
605499.CH -- Eastroc Beverage (Group) reports Q1 net income attributable CNY980.0M, +48% vs year-ago CNY663.9M
670.HK -- China Eastern Airlines reports March traffic +10.51% y/y
605499.CH -- Eastroc Beverage (Group) reports Q1 operations update
601699.CH -- Shanxi Lu'an Environmental Energy Development reports March raw coal production 4.7Mt, +3.5% y/y
1336.HK -- New China Life Insurance reports Jan-Mar premium income of CNY73.22B, +28% y/y
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
10:00 CST: GDP NSA Y/Y; consensus +5%
10:00 CST: Industrial Output NSA Y/Y; consensus +6.1%
10:00 CST: Retail Sales NSA Y/Y; consensus +4.2%
Earnings:
Will Semiconductor Co Ltd Shanghai (603501.CH), Zhejiang Weixing New Building Materials (002372.CH), Zhejiang Weixing New Building Materials (002372.CH)
Japan:
Economic:
08:50 JST: Core Machinery Orders ex-Electric Power Companies & Ships SA M/M; consensus +2.4%
Australia:
Earnings:
Zip Co (ZIP.AU)
India:
Earnings:
Angel One (543235.IN)
Market Data:
Gold (Jun 25): +$19.10 or +0.59% to $3259.50
WTI Crude (May 25): +$0.01 or +0.02% to $61.34
$-¥: +0.06 or +0.04% to 143.0910
$-KRW: +6.34 or +0.45% to 1427.0200
A$-$: +0.00 or +0.13% to 0.6336
$-INR: (0.31) or (0.36%) to 85.7268
$-CNY: +0.00 or +0.03% to 7.3148
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