Newscasts - Asia Markets Briefing: Markets steady after wild week winds down

YAMAHA

26/07/2024 10:08

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Source: 'Reuters - Business videos'

Description: The yen hovered near a 12-week high against the dollar on Friday
while Asia-Pacific equity markets found their feet, a day after their worst
session since mid-April.
Short Link: https://refini.tv/3Wj5RCU

Video Transcript:

Asian stocks stabilize as wild week winds down. Welcome to Asia Markets
Briefing. I'm Ramzan Karmali. While the Yen stabilised near a 12-week high
against the Dollar on Friday, while Asia-Pacific equity markets found their
feet a day after there were sessions since mid-April. South Korean shares rose
as chip makers rebounded, but also financials rallied in response to
government tax cut proposal. Tech stocks also boosted the NIFTY 50, which had
experienced five straight sessions of losses. Taiwan stocks fell more than 4%
as investors there joined a global tech grant after a typhoon shut the markets
for two days. TSMC, the world's largest chipmaker and major Apple supplier,
saw its shares fall over 6% at one point. While Apple smartphone shipments in
China fell by 6.7% in the second quarter of 2024, in contrast, Huawei
smartphone shipments surged over the same period. The data from Canalys at
market research firm also showed that the American tech-giant’s market
share decreased from 16% to 14% in the same quarter of 2023. Core inflation in
Japan’s capital accelerated for a third straight month in July. But an
index gauging demand driven price growth slowed. Tokyo's core CPI, which
excludes volatile fresh food costs, rose 2.2% in July from 2.1% in June. But
with energy costs stripped away, it slowed to 1.5% from the previous month,
1.8%. While that could complicate how soon the Bank of Japan decides to raise
rates. Policymakers meet for two days next week, as well as debating whether
to increase rates they'll also be laying out details on how the BOJ will taper
its huge on purchases. BOJ Governor Kazuo Ueda has said the central bank will
hike rates from current near-zero levels if it becomes more convinced that
underlying inflation stays at around 2% in the coming years as it projects.
According to LSEG estimates, the rate futures market has priced in a 67.2%
chance that rates will rise by 10-basis points, up from a 40% chance earlier
in the week. One strategist we spoke to noticed a significant move by the
markets on Thursday.


Markets have been starting to up expectations or reprice the backdrop for next
week's BOJ meeting. So one stage earlier in today's session, we had almost
nine basis points of tightening price for next week. So, combination of those
factors have really encouraged a significant risk reversal and accordingly
those risk barometer trades, including majority of those which are short of
Yen have been unwound quite aggressively.


It's a busy week coming up on the corporate earnings front, especially in
Japan with the likes of Yamaha and Japan Airlines reporting. Perhaps the
highlight will be on Thursday, when car-giant Toyota releases its first
quarter results for 2025. Today, it was reported that a Nikkei that it is
going to set up a new EV battery plant in Kyushu. And that's it from your Asia
Markets Briefing