Equities in Japan and China advanced following gains on Wall Street as investors cheered a string of encouraging economic data points from the world’s three largest economies. Japan’s Topix index rose as much as 1.4% and China’s CSI 300 benchmark gained more than 1%, while futures contracts for the S&P 500 climbed in Asian trading. The gains followed data showing Japan’s economy grew faster in the second quarter than analysts forecast, and signs of stabilization in China that included slowing declines in home prices and better-than-expected retail sales. The Japanese data showed the strength of domestic demand and “signals that Japan may be ready to leave its deflationary decades to the annals of history,” said Naomi Fink, chief global strategist at Nikko Asset Management in Tokyo. “The data, alongside the positive turn in real wage growth reinforce the sustainability of Japan’s reflationary dynamics.” The economic numbers added further support for sentiment after US inflation data Wednesday showed year-on-year core consumer prices in July rose at the slowest pace since 2021, paving the way for anticipated Federal Reserve interest-rate cuts next month. Traders are currently fully pricing in one 25 basis-point reduction in September and 100 basis points of easing through year-end, indicating a degree of confidence the central bank will deliver one half-point cut in the remaining three meetings of 2024. Australian shares also advanced, while those in Taiwan declined. Financial markets in South Korea and India are shut for holidays. Treasuries fell in Asia with the 10-year yield rising one basis point to 3.84%. The dollar strengthened versus most of its major peers. The yen was little changed near 147 to the greenback after weakening 0.3% Wednesday. Australian 10-year bond yields slipped to a 13-month low before trimming those declines as jobs growth surpassed expectations, underscoring the resilience of the labor market to elevated interest rates. Not everyone saw the China numbers positively. The “July data suggest the government will have to provide more stimulus to meet its 5% economic growth target for the year,” Ed Yardeni, who runs Yardeni Research, wrote in a research note. “Most striking is the small but unusual decline in bank loans during the month. It suggests a lack of confidence among businesses and consumers, potentially leading to reduced investment and spending.” In addition to China’s data, the central bank announced it would inject one-year liquidity to domestic lenders on Aug. 26, instead of Aug. 15, a rare delay that comes amid a broad overhaul of its policy toolkit. Tencent Holdings Ltd. dropped in Hong Kong despite posting an 82% increase in net income in results released late Wednesday, helped along by demand for its mobile games. The company’s US-listed shares fell Wednesday, weighed down by concerns about the Chinese economy. Hedge fund manager Michael Burry, who bet against the US housing market in 2008, further increased his stake in Alibaba Group Holding Ltd. despite cutting his equity portfolio in half in the second quarter. Investors will also be focused on further reaction to the decision by Japanese Prime Minister Fumio Kishida to bow out of the ruling Liberal Democratic Party’s leadership election next month. The move will trigger “a period of modest political uncertainty,” said Taro Kimura, senior Japan economist at Bloomberg Economics. “That’s hardly a welcome prospect for markets in light of the recent turmoil in stocks and the yen.” The S&P 500 extended its advance into a fifth straight day on Wednesday, the longest winning streak in more than a month. Most of its major groups gained, with financial, energy and tech shares leading the charge. In late trading, Cisco Systems Inc. climbed on a solid revenue forecast. In commodities, oil clawed back gains in early trading after falling for a second session on Wednesday. Gold edged higher after two daily declines to trade above $2,450 per ounce. US After Hours CSCO +5.6% higher on earnings and restructuring; LITE +18.2% higher on earnings; ULTA +14.5% surging as Warren Buffett discloses new position; NKE +4.2% as Bill Ackman discloses new position.
Nikkei +0.70% Hang Seng -0.34% CSI +0.59% Shanghai +0.57% Shenzen +0.47%
Eur$ 1.1011 CNH 7.1524 CNY 7.1543 JPY 147.26 GBP 1.2840 CHF 0.8654 RUB 89.7327 TRY 33.6130 WTI$ 77.24 +0.34% Gold 2,454 +0.30% BTC 58,345 -1.37% ETH 2,649 -1%
S&P +0.17% Nasdaq +0.36% EuroStoxx +0.49% FTSE +0.39% Dax +0.42% SMI +0.29%
Macro :
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Keep an eye on :
Keep an eye on :
- ADYEN NA : Adyen 1H Net Revenue Meets Estimates
- AIR FP : El Al Signs Agreement to Buy 20 Boeing 737 Max Planes
- ALMB DC : Alm. Brand Starts New DKK150m Share Buyback Program
- AUTO NO : Autostore 2Q Adjusted Ebitda Misses Estimates
- BAVA DC : Bavarian Nordic Says It Can Meet Mpox Shot Demand, Awaits Orders
- BT/A LN : Bharti Raises $1.8B from Barclays for BT Stake Purchase: ET
- CWC GY : Cewe Stiftung 2Q Sales EU151.5M
- CFN PL : Cofina Sells Stake in Publication Distributor Vasp for EU4.5m
- DEMANT DC : Demant 1H Revenue Meets Estimates; to Restructure EPOS Unit
- DNO NO : DNO 2Q Production 79,415 BOE/D Vs. 14,417 Y/y
- ECV GY : Encavis 1H Oper Ebitda EU126.1M Vs. EU151.6M Y/y
- EMBRACB SS : Embracer 1Q Net Sales Misses Estimates
- EMMN SW : Emmi Falls on Low Sales in Difficult Environment: Street Wrap
- EMMN SW : Emmi Falls on Low Sales in Difficult Environment: Street Wrap
- ERICB SS : Cisco Gives Upbeat Sales Forecast Even as It Cuts Jobs (2)
- EXPN LN : Experian’s Proposed Buy of Illion Cleared by Australia Regulator
- FAST NA : Fastned 1H Oper Ebitda EU14.7M Vs. EU10.6M Y/y
- FINGB SS : Fingerprint Cards 2Q Oper Loss SEK90.8M Vs. Loss SEK75.7M Y/y
- FLS DC : FLSmidth 2Q Orders Misses Estimates
- FORTUM FH : Fortum 2Q Adjusted Operating Profit Beats Estimates
- GEBN SW : Geberit 1H Ebitda Meets Estimates
- HEX NO : Hexagon Composites 2Q Ebitda Beats Estimates
- INTC US : SoftBank discussed AI chips tie-up with Intel to rival Nvidia
- SDF GY : K+S 1H Ebitda EU328.4M
- KPJAMO FH : Kojamo 2Q Adjusted Ebitda Misses Estimates
- MEKKO FH : Marimekko 2Q Adjusted EPS Misses Estimates
- B4B GY : Metro AG 9M Revenue EU22.99B Vs. EU22.65B Y/y
- NLFSK DC : Nilfisk 2Q Revenue Misses Estimates
- NKE US : Nike Rises After Bill Ackman’s Pershing Square Discloses Stake
- NN NA : NN Group 1H Operating Profit Beats Estimates
- ORSYED DC : Orsted 2Q Ebitda Beats Estimates
- PNDXB SS : Pandox Evaluating Possibility of Buying SEK3b Hotel Portfolio
- RNK LN : Rank Group FY Net Gaming Revenue Meets Estimates
- ROG SW : How Roche passed on a potential $14bn-a-year weight-loss pill
- SHLF NO : Shelf Drilling 2Q Adjusted Revenue $230.8M
- STORB SS : Storskogen 2Q Sales Beats Estimates
- XUS : US Steel Outperforms on Bets Nippon Steel Deal Has Better Chance
- VEI NO : Veidekke 2Q Pretax Profit Beats Estimates
- ZEAL DC : Zealand Pharma Boosts FY Net Operating Expense Forecast