Equities in Asia declined as investors began pulling back on the artificial-intelligence frenzy that has powered the bull market this year. The yen rose for a fourth day ahead of next week’s Bank of Japan meeting. The MSCI Asia Pacific Index declined 1.6%, the most in nearly two months, as Japan’s Nikkei 225 Stock Average headed for a technical correction. South Korea’s benchmark lost nearly 2%, with chipmaker SK Hynix Inc. tumbling as much as 8.9% even after an earnings beat. In the US, the S&P 500 slumped 2.3%, its worst showing since December 2022. The yen climbed 1% against the dollar for a second day. The Japanese currency is trading at the strongest levels relative to the greenback since May as traders start positioning for a potential policy rate hike by the BOJ. Former New York Fed President William Dudley called for lower borrowing costs — preferably at next week’s gathering. For many analysts, such a move would be worrisome as it would indicate officials rushing to avoid a recession. Later Thursday in the US, investors will see further evidence of the health of the economy with US GDP and initial jobless claims data being released. In Asia, the People’s Bank of China cut its medium-term lending facility rate to 2.3% from 2.5% on Thursday, following a surprise reduction to a key short-term rate to boost slowing economic activity. The nation’s 10-year bond futures was steady. Stocks in Hong Kong and the mainland fell. In the Philippines, the nation’s central bank suspended currency trading for a second day due to Typhoon Gaemi. Taiwan’s market remained closed due to Gaemi, meaning Asian chip heavyweight Taiwan Semiconductor Manufacturing Co. is not trading again Thursday. An index of dollar strength was little changed Thursday after a similarly flat Wednesday. The tech-heavy Nasdaq 100 fell 3.7% weighed down by its largest constituents. Alphabet Inc. slid 5% with spending higher than analysts expected, while Tesla Inc.’s Robotaxi delay spurred a 12% stock plunge. Treasuries rallied in Asian trading after the bond curve steepened in the previous session on bets the Fed is close to cutting rates. After driving the rally in stocks for most of 2024, big tech slammed into a wall. Traders rotated from megacaps to lagging parts of the market, spurred by bets on Fed rate cuts and concern AI still needs to pay off. The drubbing in these stocks has seen some of the air come out of valuations. While that’s something that could argue in favor of dip buying, the earnings season is just getting started. Apple Inc., Microsoft Corp., Amazon.com Inc. and Meta Platforms Inc. are all due to report results next week. Oil fell, joining a broad retreat in commodities, as a soft economic outlook for China outweighed lower US stockpiles. Gold extended losses from Wednesday. Digital assets, such as Bitcoin and Ether, also slid. US After Hours PI +6.9%, NOW +6.8%, KLAC +3.2%, CMG +2.9%, IBM +1.8% higher on earnings; EW -16.2%, MXL -15.9%, F -11%, RHI -9.8% lower on earnings.
Nikkei -3.09% Hang Seng -1.64% CSI -0.56% Shanghai -0.45% Shenzen +0.24%
Eur$ 1.0840 CNH 7.2553 CNY 7.2528 JPY 152.84 GBP 1.2889 CHF 0.8833 RUB 86.1685 TRY 32.9653 WTI$ 76.96 Gold 2,370 BTC 64,150 ETH 3,182
S&P +0.14% Nasdaq +0.19% EuroStoxx -0.70% FTSE -0.29% Dax -0.55% SMI -0.31%
Macro :
- Goldman’s Rubner Says Stocks Flash Sell Signal to Systemic Funds
Keep an eye on :
- AALB NA : Aalberts 1H Revenue Misses Estimates
- AC FP : Accor 1H Ebitda Beats Estimates
- AIXA GY : Aixtron 2Q Ebit Misses Estimates
- ANDR AV : Andritz 2Q Net Income Meets Estimates, Confirms Outlook
- AAL LN : Anglo American 1H Adjusted Profit Beats Estimates
- AAPL US : Huawei plans tri-fold smartphone as Apple weighs foldable iPhone, reports say
- ARCAD NA : Arcadis 2Q Oper Ebitda EU141M Vs. EU120M Y/y
- ARGX BB : Argenx 2Q Vyvgart Sales Beats Estimates
- AZN LN : AstraZeneca 2Q Core EPS Beats Estimates
- AUTN SW ; Autoneum Narrows FY Ebit Margin Forecast
- BANB SW : Bachem 1H Sales Misses Estimates (1)
- BAMNB NA : BAM Narrows FY Adjusted Ebitda Margin Forecast
- BATS LN : BAT 1H Adjusted Operating Profit Misses Estimates
- BAYN GY : Australian Court Rejects Claim Bayer’s Roundup Causes Cancer
- BYW6 GY : BayWa Prelim 2Q Ebit EU61.3m, Withdraws FY Ebit Forecast
- BFSA GY : Befesa 2Q Adjusted Ebitda Misses Estimates
- BESI NA : BE Semiconductor 2Q Orders Misses Estimates (1)
- BT/A LN : BT 1Q Adjusted Ebitda Beats Estimates
- BUCN SW : Bucher 1H Sales Meets Estimates
- BRBY LN : Burberry Seeks Board Member Who Could Replace Chairman: Sky
- CARM FP : Carmila 1H Gross Rental Income Beats Estimates
- CAR FP : Carrefour 1H Recurring Operating Income Misses Estimates
- DSY FP : Dassault Systemes 3Q Non-IFRS EPS Forecast Misses Estimates
- DB1 GY : Deutsche Boerse Boosts FY Ebitda Forecast
- DRW3 GY : Draegerwerk 2Q Ebit EU40.7M Vs. EU18.7M Y/y
- ECONB BB : Econocom 1H Rev. Cont Ops EU1.34B Vs. EU1.30B Y/y
- ELIS FP : Elis 2Q Organic Revenue Misses Estimates, Elis Raises FY Organic Growth, Ebitda Margin Goals
- RF FP : Eurazeo Assets Under Management EU35.36B Vs. EU32.41B Y/y
- F US : Ford Shares Sink After 2Q Adjusted EPS Misses Estimate
- FRA GY : Frankfurt Airport Says Flights Suspended Due to Demonstration
- FRES LN : Fresnillo Maintained at Add by Peel Hunt
- GALD SW : Galderma 1H Core Ebitda $514M
- GET FP : Getlink 1H Ebitda Beats Estimates
- HMSO LN : Hammerson 1H Gross Rental Income Misses Estimates
- HUH1V FH : Huhtamaki 2Q Adjusted Ebit Matches Estimates
- IBM US : IBM Reports Boost in AI Bookings, Better-Than-Expected Revenue
- IDIA SW : Idorsia Sees FY Operating Loss CHF320M, Saw Loss CHF340M
- IPR PL : Impresa 1H Net Loss EU4M Vs. Loss EU4M Y/y
- IPN FP : Ipsen Boosts FY Sales at Constant Exchange Rates Forecast, Ipsen in Exclusive US Licensing Pact With Day One
- IPS FP : Ipsos FY Organic Revenue Forecast Misses Estimates
- DEC FP : JCDecaux 2Q Adjusted Revenue Beats Estimates
- JMT PL : J. Martins 2Q Net Income Misses Estimates, J. Martins 2Q Net Income Misses Estimates Amid Higher Costs
- BAER SW : Julius Baer 1H Net New Money Gain Beats Estimates, Julius Baer Sees Client Inflows Accelerate Amid Benko Clean-Up
- KEMIRA FH : Nasdaq Adds Kemira to OMX Helsinki 25 Index, Drops Telia
- KER FP : Kering Warns of Profit Plunge as Gucci Turnaround Sputters
- LVS US : Las Vegas Sands Reports Second Quarter 2024 Results
- LONN SW : Lonza 1H Core Ebitda Beats Estimates
- MOVE SW : Medacta 1H Revenue Meets Estimates
- MERY FP : Mercialys 1H Rental Rev. Beats Estimates
- ML FP : Michelin 1H Segment Operating Margin Beats Estimates
- ML FP : Michelin ADRs Rise on Segment Operating Income Beat
- MONC IM : Moncler 2Q Revenue Meets Estimates
- NEM US : Newmont Corp 2Q Sales Beats Estimates
- NESTE FH : Neste 2Q Adjusted Ebitda Misses Estimates
- NESN SW : Nestle Sees FY Organic Revenue at Least +3%, Saw About +4%
- NDX1 GY : Nordex Narrows FY Ebitda Margin Forecast
- NOVOB DC : Ozempic Maker Novo Reports Minor Fire at Malov Research Site
- NOVOB DC : Ozempic Maker Novo Reports Minor Fire at Malov Research Site
- RNO FP : Renault’s Profit Margin Widens to Record on Cost Cuts, SUV Sales
- RTO LN : Rentokil 1H Adjusted Pretax Profit Meets Estimates
- ROG SW : Roche 1H Core EPS Beats Estimates, Raises FY Guidance
- SPM IM : Saipem 2Q Revenue Beats Estimates
- SAN FP : Sanofi 2Q Business EPS Beats Estimates
- SAN FP : Sanofi, Teva See Topline Results for Anti-TL1A Trial in 4Q
- SIFI : Benetton Scion Is Said to Consider Sale of Eye Care Firm Sifi
- WAF GY : Siltronic 2Q Sales Beats Estimates; Siltronic Sees 2H Margin Hit, Sees FY Margin at Top of Range
- S30 FP : Solutions 30 2Q Revenue EU252.0M Vs. EU263.4M Y/y
- SOP FP : Sopra Steria 1H Net Income EU123.2M Vs. EU112.5M Y/y
- STLA US : Stellantis 1H Net Income Misses Estimates: Snapshot
- STMPA FP : STMicroelectronics Cuts FY Net Rev. Forecast, Misses Estimates
- TELIA SS : Nasdaq Adds Kemira to OMX Helsinki 25 Index, Drops Telia
- TSLA US : Musk Poll Shows 68% of X Voters Want Tesla Investment in xAI
- FP FP : *TOTALENERGIES 2Q ADJ NET $4.67B, EST. $4.92B
- UCB BB : UCB Sees FY Revenue High End of EU5.5B to EU5.7B, Est. EU5.69B
- UMG NA : UMG 2Q Ebitda Misses Estimates
- ULVR LN : Unilever 2Q Revenue Meets Estimates
- ULVR LN : Unilever Sells Stake in Qinyuan Group to Yong Chao; No Terms
- VASTN NA : Vastned 1H EPS EU0.92 Vs. EU0.95 Y/y
- VRLA FP : Verallia 2Q Revenue Beats Estimates
- VER AV : Verbund 1H Ebitda Misses Estimates
- VKTX US : Viking Shares Rally on Plans to Advance Weight-Loss Drug
- VOD LN : Vodafone Says Performance is Consistent With Guidance
- VOS GY : Vossloh 1H Revenue Misses Estimates
- WRT1V FH : Wartsila Gets Battery Order From Origin Energy in Australia
- WHR US : Whirlpool FY Ongoing EPS Forecast Misses Estimates