Global Market Quick Take: Asia – March 27, 2024 Global Market Quick Take: Asia – March 27, 2024 Global Market Quick Take: Asia – March 27, 2024

Global Market Quick Take: Asia – March 27, 2024

Macro 6 minutes to read
Redmond Wong

Chief China Strategist

Summary:  On its debut day, Trump Media & Technology Group surged 58.8% after merging with a SPAC, settling at $57.99, a 16.1% increase from the SPAC's previous close. Tesla rose 2.9% with new initiatives for its Full Self Driving system. Iron ore futures in Singapore fell over 4% due to concerns over weak demand from Chinese steel makers. Alibaba canceled the IPO of its subsidiary, Cainiao Smart Logistics Network. Australia's CPI grew 3.4% Y/Y in February, slightly below economists' 3.5% projection and unchanged from January.


The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

Equities: On its first day of being publicly listed through merging with a SPAC, Trump Media & Technology Group, ticker DJT, soared 58.8% at one point before settling at $57.99, up 16.1% from the previous closing price of the SPAC. Tesla gained 2.9% after the EV giant rolled out new initiatives to boost the adoption of its Full Self Driving system. It was a top performer within the Nasdaq 100, which fell 0.4%, while the S&P 500 slid 0.3% on Tuesday. Bucking the decline were Micron Technology, gaining 1.4%, and Seagate, surging 7.4%. However, Nvidia shed 2.6%.

In Hong Kong, market sentiments were boosted by a 3.7% surge in Tencent, along with notable gains in Baidu, Lenovo, Xiaomi, Longfor, and China Merchant Bank. The Hang Seng Index gained 1%. Baidu climbed 3.7%, driven by news of providing AI services for Apple's iPhone and other products for the China market. Xiaomi's SU7 is scheduled for an official launch on March 28th, propelling its share price by 3.2%. China Merchants Bank rose 4.3% after reporting earnings and declaring dividends exceeding expectations. In the A-share market, the CSI300 gained 0.5%.

After the Hong Kong market close, BYD reported a 15% Y/Y growth in revenue to RMB180 billion in Q4, slightly below the analyst estimate of RMB193 billion. Adjusted net income came in at RMB8.7 billion, below the RMB10.1 billion projected in Bloomberg’s survey of analysts. Gross margins slid 0.9 points from the previous quarter while rising 2.2 points from a year ago to 21.2%. However, operating margins in Q4 declined 2.1 points from Q3 and 1.0 points a year ago Q4, as the EV maker cut prices and boosted research and development, spending 32% Q/Q and 88% Y/Y more on R&D.

Alibaba called off the IPO of its logistics subsidiary, Cainiao Smart Logistics Network. This is likely to disappoint investors as the Chinese technology giant’s restructuring plan tumbles further.

FX:  The dollar recovered from early weakness to nearly unchanged against major currencies, with USDJPY at 151.50, EURUSD at 1.0830, GBPUSD at 1.2630, and AUDUSD at 0.6540.

Commodities:  Iron ore futures traded in Singapore declined by over 4% on Tuesday amid rising concerns about weak demand from Chinese steel makers.

Fixed income: Treasuries traded within a narrow range, bouncing between small gains and losses as traders awaited the PCE data, the Fed’s preferred inflation gauge this Friday. The 10-year yield ticked down 1bp to 4.23% while the 2-year yield declined by 3bps to 4.59%.

Macro:

  • US Durable Goods Orders grew 1.4% in February, stronger than the median forecast of 1% but the decline in January was revised to -6.9% from -6.2%. Excluding the volatile component of transportation, orders grew 0.5% (consensus: 0.4%, prior: revised to -0.3% from -0.4%).
  • Australia’s CPI grew 3.4% Y/Y in February, slightly below the 3.5% projected by economists and remained at the same rate in January. The core CPI growth decelerated to 3.9% Y/Y from 4.1% but the trimmed mean CPI came in at 3.9% Y/Y, ticking up from 3.8% the prior month.

Macro events: China Industrial Profits, France Consumer Confidence (Mar), Eurozone Economic Confidence (Mar)

Earnings: ICBC, China Life Insurance, Midea, Bank of Communications, Haier Smart Home, China Everbright Bank, CGN Power, Cintas, Paychex

In the news:

  • BoE's Mann says markets are pricing in too many rate cuts (Reuters)
  • Truth Social Stock Price Surges on First Day of Trading, Increasing Trump’s Fortune (WSJ)
  • Alibaba Scraps Logistics Arm’s IPO After Market Turmoil Worsens (Bloomberg)
  • iPhone Shipments in China Fell 33% in February, State Data Show (Bloomberg)
  • BYD’s annual earnings surge 81% to all-time high on record EV deliveries, warns of weak consumer demand and global headwinds (SCMP)
  • Baidu Shares Rise After Reports That Apple Will Use Its AI Services in China Products (WSJ)
  • Merck’s $11.5 Billion Bet on Its Next Big Drug Finally Arrives (WSJ)
  • Thailand, Philippines embrace nuclear power to cut emissions (Nikkei Asia)
  • China's Xi Jinping to meet with American executives on Wednesday, sources say (Reuters)

 

For all macro, earnings, and dividend events check Saxo’s calendar.

For a global look at markets – go to Inspiration

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) Ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law. 

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.