Thu, Dec 01, 2022 @ 13:43 GMT
HomeContributorsFundamental AnalysisAsian Market Update: Australia Q4 Corporate Profits Rise As Wages Fall

Asian Market Update: Australia Q4 Corporate Profits Rise As Wages Fall

Australia Q4 corporate profits rise as wages fall

Asia Mid-Session Market Update: Australia Q4 corporate profits rise as wages fall; GBP slides on speculation of another Scotland referendum

Friday US markets on close: Dow +0.1%, S&P500 +0.2%, Nasdaq +0.2%

Best Sector in S&P500: Utilities

Worst Sector in S&P500: Energy

Biggest gainers: FL +9.4%; INTU +6.1%; JWN +5.7%

Biggest losers: SWN -12.0%; HPE -6.9%; RRC -4.5%

At the close: VIX 11.5 (-0.2pts); Treasuries: 2-yr 1.16% (+2bps), 10-yr 2.32% (-7bps), 30-yr 2.96% (-7bps)

Weekend US/EU Corporate Headlines

BRK.A: Reports Q4 Operating EPS (Class A) $2,665 v $2,843 y/y

KATE: Michael Kors and Coach said to be among the suitors to reach second round of bidding for Kate Spade – press

Politics

(UK) UK govt said to be preparing for the new independence vote by Scotland – UK press

(US) Treasury Sec Mnuchin: Pres Trump’s first budget will not include any cuts to social welfare programs such as Social Security and Medicare – press

(US) Former Labor Secretary under President Obama, Tom Perez, elected as the new chairman of Democratic Party – press

(US) President Trump nominee for Navy Sec, Philip Bilden, said to withdraw his own nomination – financial press

Key economic data:

(AU) AUSTRALIA Q4 COMPANY OPERATING PROFIT Q/Q: 20.1% (multi-year high) V 8.9%E; INVENTORIES Q/Q: 0.3% V 0.5%E

(NZ) New Zealand Jan Net Migration: 6.5K (record high) v 6.0K prior

Asia Session Notable Observations, Speakers and Press

Asia equities down slightly again as divergence from modest increases in US indices continues; Nikkei225 the biggest decliner on stronger JPY.

USD was under added pressure on Friday while yields on the longer-end of the curve come in more notably; GBP also falls by as much as 80pips on UK press report that Scotland is preparing to call for another referendum when PM May triggers article 50 next month. AUD briefly rises after Q4 corporate profits data.

Australia’s corporate profits hit multi-year high as inventories growth comes in below ests; Expectations for higher GDP tempered by decline in the Wages component.

Ahead of US President Trump’s address in front of Congress on Tuesday, Treasury Sec Mnuchin says the cabinet will not call for social spending program cuts but will seek sharp increase in defense funding.

China

(CN) China Securities Regulatory Commission (CSRC) chairman Liu Shiyu: Since capital market recovery from 2015 slump has been stronger than expected, China is ready for larger supply of IPOs – press

(CN) China National People’s Congress (NPC) leaves corporate tax rate unchanged at 25% – SCMP

(CN) Chinese press citing researchers from State Information Center (SIO) forecast Q1 GDP at 6.6%

(CN) China said to ramp up its naval defense budget due to uncertainty about Trump’s plans for South China Sea – press

Japan

(JP) Nearly 60% of poll respondents in Japan had a favorable view of PM Abe’s meeting with US Pres Trump – Nikkei

Asian Equity Indices/Futures (00:00ET)

Nikkei -0.7%, Hang Seng +0.1%, Shanghai Composite -0.3%, ASX200 -0.3%, Kospi -0.3%

Equity Futures: S&P500 +0.2%; Nasdaq +0.1%, Dax +0.1%, FTSE100 +0.2%

FX ranges/Commodities/Fixed Income (00:00ET)

EUR 1.0550-1.0575; JPY 111.90-112.30; AUD 0.7660-0.7710; NZD 0.7185-0.7210; GBP 1.2390-1.2470

Apr Gold -0.1% at 1,257/oz; Apr Crude Oil +0.6% at $54.31/brl; May Copper -0.3% at $2.69/lb

(IR) Iran Navy Rear Admiral Habibollah Sayyari announces annual exercises to be held in the Strait of Hormuz – press

(CN) PBOC SETS YUAN MID POINT AT 6.8814 V 6.8655 PRIOR

(CN) PBOC to inject combined CNY30B v CNY30B prior in 7-day, 14-day and 28-day reverse repos

(KR) South Korea sells 20-yr bonds; avg yield 2.215% v 2.195% prior

Asia equities / Notables / movers

Australia

QBE Insurance QBE.au +2.9% (FY16 result)

Lend Lease LLC.AU +3.9% (FY16 result)

Austal ASB.AU -2.6% (H1 result)

MacMahon MAH.AU -3.3% (H1 result)

Japara JHC.AU -6.2% (H1 result)

Hong Kong

Fortunet 1039.HK -3.4% (profit warning)

Boer Power 1685.HK -4.6% (profit warning)

BYD Electric 1211.HK +3.4% (FY16 result)

Futures Land Development 1030.HK -7.1% (FY16 result)

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