Aug 21 ,2024
Synopsis:
Asian markets set for mildly positive start to Thursday trade. Futures signaling opening gains in Japan, Hong Kong and Australia. S&P 500 futures flat after US indexes firmed following July FOMC minutes. Australian bonds strengthening after Treasury curve bull steepened overnight. Dollar weakness the big story in FX markets with DXY erasing its 2024 gain. Crude nursing losses while gold flat after pulling back from record high. Bitcoin unchanged after rallying to upside of recent range.
FOMC minutes reinforced dovish rate outlook with majority of participants saying September rate cut likely appropriate. Minutes coupled by larger-than-expected downward revision to annual payrolls, tying into Fed's shift in focus from inflation to labor market. While 25 bp September rate cut is widely expected, futures are pricing in around four cuts by year-end. Odds of outsized 50 bp cut next month rose ~10 bp to 39%.
BOK expected to leave interest rates unchanged today against backdrop household debt risks and July inflation rebound. Economists still expect BOK to ease in coming months after central bank cited disinflation traction in July with two board members voicing openness to rate cuts. Reuters poll showed economists expect BOK to cut by 25 bp in October following likely Fed rate cut next month.
With most of the attention on Fed Chair Powell's Jackson Hole speech on Friday, BOJ Governor Ueda's appearance at parliament the same day will also capture attention as Japan lawmakers seek answers on fallout from July rate hike. Ueda seen refraining from signaling any policy bias while dismissing prospect of rate hike when markets are unstable. However, economists still expect another rate hike by year-end with two thirds in Reuters poll eyeing December move.
Pre-open Company News:
600521.CH -- FDA approves ANDA of Zhejiang Huahai Pharmaceutical's ticagrelor tablets (90mg)
600867.CH -- Tonghua Dongbao Pharmaceutical completes 80-120M share buyback announced on 8-Jul
500312.IN -- Oil and Natural Gas Corporation to infuse additional equity of INR78.64B to ensure viability of ONGC Petro additions
12.HK -- Henderson Land Development reports H1 underlying profit attributable HK$5.44B vs StreetAccount HK$6.25B
300146.CH -- By-health launches CNY100-200M share buyback at up to CNY20/share to run for 12 months
2005.HK -- SSY Group's winning bid for Bromhexine Hydrochloride Injection cancelled; unit banned from participating in National Centralized Procurement for six months
543396.IN -- One 97 Communications (Paytm) publishes Annual Report for FY ending 31-Mar-24
VGR -- Vector Group to be acquired by JT Group for $15.00 per share in cash or ~$2.4B of total equity value
688520.CH -- Sinocelltech Group reports H1 net income attributable CNY125.7M vs year-ago (CNY137.9M)
F -- Follow-up: Ford announces updates to its EV strategy; to take $400M non-cash charge
543396.IN -- One 97 Communications (Paytm) to sell entertainment ticketing business to Zomato for INR20.48B
000581.CH -- Weifu High-Technology Group reports H1 net income attributable CNY954.3M vs year-ago CNY948.8M
+INLF -- INLIF Ltd. files amended F-1; changes underwriter to AC Sunshine Securities from Univest Securities
1816.HK -- CGN Power reports H1 net income attributable ex-non recurring gains and losses CNY6.96B vs year-ago CNY6.95B
2887.TT -- Taishin Financial Holdings halts stock trading from tomorrow pending release of material information
On Deck:
China:
Earnings:
Ningbo Joyson Electronic (600699.CH)
Hong Kong:
Earnings:
Road King Infrastructure (1098.HK), Livzon Pharmaceutical Group (1513.HK), C&D International Investment Group (1908.HK), AAC Technologies Holdings (2018.HK), China Power International Development (2380.HK), Orient Overseas (International) (316.HK), CIMC Enric Holdings (3899.HK), SOHO China (410.HK), Cloud Music (9899.HK), Datang International Power Generation (991.HK), Brilliance China Automotive Holdings (1114.HK), 3SBio Inc (1530.HK), Mulsanne Group Holding (1817.HK), Fosun Tourism Group (1992.HK), Shanghai Chicmax Cosmetics (2145.HK), Yonghe Medical Group (2279.HK), Lepu Scientech Medical Technology (2291.HK), The Bank of East Asia (23.HK), Ping An Insurance (Group) Co. of China (2318.HK), Weichai Power (2338.HK), Comba Telecom Systems Holdings (2342.HK), Zhihu, Inc. (2390.HK), Onewo, Inc. (2602.HK), Sinotruk Hong Kong (3808.HK), Country Garden Services Holdings (6098.HK), Angelalign Technology (6699.HK), Ascentage Pharma (6855.HK), Blue Moon Group Holdings (6993.HK), BOE Varitronix (710.HK), Viva Goods (933.HK)
South Korea:
Economic:
11:10 KST: BoK Repo Rate; consensus +3.5%
Australia:
Earnings:
Autosports Group (ASG.AU), AIC Mines (A1M.AU), ARN Media (A1N.AU), Eagers Automotive (APE.AU), Codan (CDA.AU), EQT Holdings (EQT.AU), GR Engineering Services (GNG.AU), Growthpoint Properties Australia (GOZ.AU), MA Financial Group (MAF.AU), Megaport (MP1.AU), Monash IVF Group (MVF.AU), Objective Corp. (OCL.AU), Peet (PPC.AU), Qube Holdings (QUB.AU), Redox Ltd. (RDX.AU), Stockland (SGP.AU), Sonic Healthcare (SHL.AU), Starpharma Holdings (SPL.AU), The Reject Shop (TRS.AU), Whitehaven Coal (WHC.AU), Abacus Group (ABG.AU), Australian Clinical Labs (ACL.AU), Apiam Animal Health (AHX.AU), Accent Group (AX1.AU), BSP Financial Group (BFL.AU), Coast Entertainment Holdings (CEH.AU), Harmoney Corp. (HMY.AU), Inghams Group (ING.AU), Latitude Group Holdings (LFS.AU), LGI LTD (LGI.AU), Mayne Pharma Group (MYX.AU), PlaySide Studios (PLY.AU), Rural Funds Group (RFF.AU), Telix Pharmaceuticals (TLX.AU), Winton Land (WTN.AU)
New Zealand:
Earnings:
Channel Infrastructure NZ (CHI.NZ), NZX (NZX.NZ), Spark New Zealand (SPK.NZ)
Malaysia:
Economic:
00:00 EST: CPI NSA Y/Y; consensus +2.1%
Market Data:
Gold (Dec 24): +$2.80 or +0.11% to $2550.30
WTI Crude (Oct 24): $0.00 or 0.00% to $71.93
$-¥: (0.24) or (0.17%) to 145.0250
$-KRW: +5.54 or +0.42% to 1334.8700
A$-$: +0.00 or +0.06% to 0.6749
$-INR: +0.12 or +0.14% to 83.8818
$-CNY: (0.00) or (0.06%) to 7.1318
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