Aug 21 ,2025
Synopsis:
Asia equities poised to open mostly in positive territory Friday. Futures in Japan and Hong Kong traded higher, while Australia lagged. Japan ADRs were broadly weaker while Golden Dragon China index rose 1.35%. US contracts somewhat firmer following moderate declines in the cash session, though off worst levels. Tech leads were negative, particularly in terms of breath -- SOX index fell 0.49% with almost all US Big Tech lower. Treasuries weaker across the curve, with yields up 3-5 bp. Dollar index up 0.4%. Gold finished down 0.2%. Bitcoin futures off 2%. WTI crude ended up 1.3%.
Fed now squarely in focus ahead of Powell's speech at the Jackson Hole Symposium. September rate cut expectations fell below 80% after latest hawkish Fedspeak and upside surprise in US flash PMIs. Some mixed signals against other data with higher jobless claims garnering most of the attention. With a September cut remaining the baseline scenario, risks skewed hawkish if Powell emphasizes elevated inflation and outlook uncertainty. Volatility from any surprise apt to be compounded by seasonally thin August volumes. Recent Mag7/AI/growth/momentum underperformance continues to get a lot of attention with yesterday's pullback partly attributed to renewed scrutiny surrounding the payout from AI investments. Markets still bracing for announcement of US chip tariffs potentially in the triple digits, which President Trump flagged could be announced this week. US and EU reached framework agreement on trade, though largely on the back burner at this point.
Asia markets set to bide time ahead of Jackson Hole with the regional macro calendar light. Japan core inflation eased further, mostly in line with expectations and consistent with earlier Tokyo figures, mainly reflecting government energy subsidies. Attention remains on non-fresh food price pressures; rice surge moderated though aggregate still edged higher. Yet, data impacting BOJ policy expectations only on the margins with consensus looking for a rate hike by year-end and largely viewed as a matter of timing. Latest Reuters consensus leaned in favor of October. BOJ speculation was attributed as the underlying driver behind latest uptick in 10y JGB yields, hitting a 17-year high 1.61% Thursday. Notable Asia themes have died down this week after earnings season concluded. Disappointing China activity data was the key data surprise this week, though reverberations have been limited.
Pre-open Company News:
2809.TT -- SinoPac Financial Holdings Co. to issue 1.38B shares for acquisition of King's Town Bank
7751.JP -- Canon to conduct up to 11.4M-share off-auction buyback for up to ¥50.11B at ¥4,382/share 08:45 JT on 22-Aug
300454.CH -- Sangfor Technologies reports H1 net income attributable (CNY227.6M) vs year-ago (CNY591.9M)
603707.CH -- Nanjing King-friend Biochemical Pharmaceutical Co. receives FDA drug registration approval for Nicardipine Hydrochloride injection
002373.CH -- China TransInfo Technology reports H1 net income attributable CNY169.7M vs guidance CNY150.0-200.0M and year-ago CNY12.2M
600483.CH -- Fujian Funeng confirms H1 result, as reported on 25-Jul
000958.CH -- SPIC Industry Finance Holdings reports H1 net income attributable CNY458.9M, (13%) vs year-ago CNY530.0M
603160.CH -- Shenzhen Goodix Technology reports H1 net income attributable CNY430.6M, +36% vs year-ago CNY317.2M
601567.CH -- Ningbo Sanxing Medical Electric reports H1 net income attributable CNY1.23B, +7% vs year-ago CNY1.15B
9923.HK -- Yeahka reports H1 net income attributable CNY43.1M, +36% vs year-ago CNY31.6M
1024.HK -- Kuaishou Technology reports Q2 adjusted net income CNY5.62B vs FactSet CNY5.04B
600216.CH -- NMPA approves clinical trial of Zhejiang Medicine's XC2309 injection
9690.HK -- Tuhu Car reports H1 adjusted net income CNY410.5M vs FactSet CNY363M
688188.CH -- Shanghai BOCHU Electronic Technology Corp. reports H1 net income attributable CNY640.1M, +30% vs year-ago CNY491.2M
On Deck:
China:
Earnings:
Ganfeng Lithium Group (002460.CH), Walvax Biotechnology (300142.CH), Fujian Funeng (600483.CH), Huali Industrial Group (300979.CH), Beijing Tiantan Biological Products (600161.CH), Xiamen Tungsten (600549.CH)
Hong Kong:
Earnings:
C&D International Investment Group (1908.HK), China Vanke (2202.HK), Bloks Group (325.HK), Jiumaojiu International Holdings (9922.HK), Greentown Management Holdings (9979.HK), CSPC Pharmaceutical Group (1093.HK), Sinopharm Group (1099.HK), Brilliance China Automotive Holdings (1114.HK), East Buy Holding (1797.HK), Zhaojin Mining Industry (1818.HK), Ainnovation Technology Group Co. (2121.HK), Lepu Scientech Medical Technology (2291.HK), Minieye Technology (2431.HK), Marketingforce Management (2556.HK), Dida Inc. (2559.HK), China Everbright Environment Group (257.HK), Greentown Service Group (2869.HK), Beijing Tong Ren Tang Chinese Medicine (3613.HK), Zhuzhou CRRC Times Electric (3898.HK), Greentown China Holdings (3900.HK), Dongfeng Motor Group (489.HK), Gemdale Properties & Investment (535.HK), Zhejiang Expressway (576.HK), China Tobacco International (HK) (6055.HK), Zhou Liu Fu Jewellery (6168.HK), Star CM Holdings (6698.HK), ZJLD Group (6979.HK), Antengene (6996.HK), CIFI Holdings (Group) (884.HK), Viva Goods (933.HK), China Youran Dairy Group (9858.HK), ADICON Holdings (9860.HK), Dingdang Health Technology Group (9886.HK), Peijia Medical (9996.HK)
Japan:
Economic:
08:30 JST: CPI Core National Y/Y; consensus
08:30 JST: CPI National Y/Y; consensus +3.1%
08:30 JST: CPI ex-Fresh Food and Energy; consensus +3.05%
Australia:
Earnings:
Resolute Mining (RSG.AU), Arovella Therapeutics (ALA.AU), Alkane Resources (ALK.AU), AMA Group (AMA.AU), Accent Group (AX1.AU), BCI Minerals (BCI.AU), BSP Financial Group (BFL.AU), Cobram Estate Olives (CBO.AU), Cuscal (CCL.AU), Coast Entertainment Holdings (CEH.AU), CogState (CGS.AU), DUG Technology (DUG.AU), Electro Optic Systems Holdings (EOS.AU), GQG Partners (GQG.AU), Guzman y Gomez (GYG.AU), Helia Group (HLI.AU), hipages Group Holdings (HPG.AU), Inghams Group (ING.AU), Latitude Group Holdings (LFS.AU), Rural Funds Group (RFF.AU), Zip Co (ZIP.AU), Michael Hill International (MHJ.AU), Monash IVF Group (MVF.AU)
Malaysia:
Economic:
00:00 EST: CPI NSA Y/Y; consensus +1.2%
Earnings:
Kuala Lumpur Kepong (2445.MK)
Singapore:
Earnings:
Singapore Post (S08.SP)
Market Data:
Gold (Dec 25): +$0.70 or +0.02% to $3382.30
WTI Crude (Oct 25): ($0.03) or (0.05%) to $63.49
$-¥: +0.97 or +0.66% to 148.3000
$-KRW: +1.73 or +0.12% to 1399.6100
A$-$: (0.00) or (0.12%) to 0.6424
$-INR: +0.27 or +0.32% to 87.2935
$-CNY: +0.00 or +0.05% to 7.1795
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