Equity gains seen in Asia – Tech supported by Micron and Hynix news
|Asia market update: Equity gains seen in Asia; Tech supported by Micron and Hynix news; Details released for China bank capital plan; BOJ debated future policy in Jul; Tokyo CPI data due on Fri.
General trend
- Nikkei outperforms; TECH supported by Micron results.
Reminder Sept 23rd: (JP) Japan investors are required to buy stocks by Sept 26th [Thurs] in order to have dividend rights - Nikkei.
- Follow Up: China considers injecting $142B of capital into largest banks [timeframe uncertain] – US financial press (**Reminder Sept 24th: China to increase Core Tier 1 capital of the China's six major commercial banks [details not disclosed]).
- CNH rises.
- (CN) China Politburo: To strive complete its annual economic targets; fundamentals of economy and favorable conditions have not changed'; Notes there are some new conditions and problems in economic operation.
- US equity FUTS gain.
- Japan LDP leadership election in focus [Sept 27th].
- SNB decision in focus.
Headlines/economic data
Australia/New Zealand
- ASX 200 opens +0.1% at 8,130.
-(AU) RBA Financial Stability Report: global economic outlook continues to be uncertain and vulnerabilities in the global financial system remain; The risk of widespread financial stress remains limited.
- Australia Aug Job Vacancies Q/Q: -5.2% v -2.7% prior.
-Australia Treasurer Chalmers to visit China on Thurs. [Sept 26th] – Press (**Reminder Aug 26th: (AU) Australia Treasurer Chalmers could visit China ‘within weeks in early Sept’[would be the first such trip to China in 7 years] – AFR [**Note: China is Australia's largest trade partner]).
-RBNZ: Sold net NZ$80M in Aug.
-Star Entertainment [SGR.AU]: Notes trading performance deteriorated over H2; FY24 (A$) Net -1.68B, Rev 1.68B v 1.87B y/y; Normalized Net 11.9M, -71% y/y [unaudited results].
China/Hong Kong
-Hang Seng opens +0.9% at 19,302.
-Shanghai Composite opens -0.1% at 2,893.
-Follow Up: China considers injecting $142B of capital into largest banks [timeframe uncertain] – US financial press.
- Shanghai to issue CNY500M in consumption vouchers – Xinhua.
-China bond funds ‘shrink’ amid regulatory scrutiny – Chinese press.
-China PBOC sets Yuan reference rate: 7.0354: v 7.0202 prior.
-China PBOC Paper reiterates yuan (CNY) to remain stable.
-China PBOC Open Market Operation (OMO): Sells CNY292B in 14-day Reverse Repos: Net drains CNY231.6B v drains CNY372B prior.
-China PBOC to hold CNY4.8B central bank bill swap (CBS) operation on Sept 26th.
-Hong Kong Financial Services and Treasury Sec Hui: Will seek to lower fees in city pension system.
-PayPal [PYPL]: Said to introduce PayPal Complete Payments in China - Press.
-China Finance Ministry (MOF): Issues €2.0B in 3-year and 7-year sovereign bonds.
Japan
-Nikkei 225 opens +1% at 38,266.
-Tokyo Electron [8035.JP]: Finance chief said to downplay worries that AI boom is fading - Japanese press.
-Nippon Steel [5401.JP]: Follow Up: President confirms US CFIUS review has been extended to the end of Dec [**Reminder Sept 17th: Nippon Steel said to win a CFIUS extension for review of US Steel deal; The US government’s decision on the transaction is now seen after the Nov 2024 elections - financial press, citing sources].
-Bank of Japan (BOJ) July Minutes (2 decisions ago): members shared the view that, with the price stability target of 2 percent, the Bank would conduct monetary policy as appropriate, in response to developments in economic activity and prices as well as financial conditions, from the perspective of sustainable and stable achievement of the target.
-Japan Jul Revised Cash Earnings Y/Y: +3.4%; Real Earnings Y/Y: +0.3%.
- Japan sells 40-year JGB bonds; yield at lowest accepted price: 2.34% V 2.420% prior; bid-to-cover: 2.58X V 2.20X prior.
-Japan PM Kishida to vote for Hayashi in LDP leadership race - Press.
-Japan Navy Destroyer sailed the Taiwan Strait for the first time – Japanese media.
-Japan: Aviation fuel shortage impacting 63 flights weekly.
Korea
-Kospi opens +1.3% at 2,630.
-Hynix: Begins Volume Production of the World's First 12-Layer HBM3E [**Reminder Jul 25th: Co. expects to mass produce 12-layer HBM3E in Q3 and ship during H2].
-Bank of Korea (BOK) board member Chang: Coordination between monetary and macroprudential policies need to continue.
-South Korea plans anti-dumping probe related to stainless steel from China - South Korea press.
-South Korea: North Korea may conduct 7th nuclear test after US Presidential election [inline]– South Korea press.
Other Asia
- Spacex: Vietnam: Spacex plans to invest $15B in Vietnam.
- Thailand Dep Fin Min: Plans to introduce carbon tax.
- Thailand said to ask China to purchase more Thai goods.
North America
- (US) Fed's Kugler (voter): If inflation progress continues it would support additional rate cuts.
- (US) New York City Mayor Adams has been indicted – NYT.
-Aramark [ARMK]: Sodexo said to explore acquisition of the co. - US financial press.
- Boeing [BA]: Plans to meet with union on Fri [Sept 27th] to continue mediated talks- US financial press.
- Micron [MU]: Reports Q4 $1.18 v $1.10e, Rev $7.75B v $7.64Be; Guides Q1 above consensus.
Europe
-(SA) Saudi Arabia said to be prepared to abandon $100 crude oil price target in order to win back market share - financial press.
-Belgium said to call for ban on Russian gas - FT.
-(IL) French For Min: French and US will propose 21 day ceasefire proposal plan for Lebanon.
-China Finance Ministry (MOF): Issues €2.0B in 3-year and 7-year sovereign bonds.
Levels as of 01:20 ET
- Nikkei 225, +2.2%, ASX 200 +0.9% , Hang Seng +2.4%; Shanghai Composite +0.8% ; Kospi +2.2%.
- Equity S&P500 Futures: +0.5%; Nasdaq100 +0.9%, Dax +0.4%; FTSE100 +0.2%.
- EUR 1.1145-1.1129 ; JPY 145.03-144.44 ; AUD 0.6848-0.6819 ;NZD 0.6286-0.6252.
- Gold -0.1% at $2,683/oz; Crude Oil -0.9% at $69.06/brl; Copper -0.1% at $4.4840/lb.
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