Asia: Key earnings this week will add more color on the potential from incoming China demand boost Asia: Key earnings this week will add more color on the potential from incoming China demand boost Asia: Key earnings this week will add more color on the potential from incoming China demand boost

Asia: Key earnings this week will add more color on the potential from incoming China demand boost

Equities 4 minutes to read
Charu Chanana

Head of FX Strategy

Summary:  Earnings focus moves to Asia this week, even though US retail earnings from Walmart and Home Depot will still be key. Outlook from airlines like Singapore Airlines and Qantas, as well as commodity giants like BHP and Rio and Singapore’s agri player Wilmar, will add more colour on the potential pickup in Chinese demand. China’s tech sector and its progress on ChatGPT style products will also be a key focus as Alibaba and Baidu report. Singapore bank earnings also in focus.

ChatGPT craze on test in China technology sector

Alibaba (BABA:xnys) and Baidu (09888:xhkg) report earnings this week, and the key focus will be on the outlook on the potential for artificial intelligence (AI) as well as the impact from easing crackdown of the Chinese government on the internet companies. While Baidu is likely to see the ongoing recovery in its advertisement business and upside in cloud opportunity become more supportive, key focus for investors will be on any further details on its ChatGPT-style product which the company is expected to launch in March. Alibaba is also likely in the race for an AI Chatbot, but earnings will take some time to capture the real enthusiasm from China’s reopening. Both Alibaba and Baidu have seen a rebound in their share prices this year, market will be focused on evidence of an earnings recovery and a strong outlook to sustain the price momentum.

Travel demand outlook from airline stocks on watch

Earnings reports from Singapore Airlines (C6L:xses), Qantas Airlines (QAN:xasx) and Air New Zealand (AIZ:xasx) will be key to assess how the Asia reopening theme has been playing out. More importantly, the outlook for the travel and tourism sector will be on watch in anticipation of the return of Chinese tourists. US airlines earnings results for Q4 have been strong amid booming demand and a decline in jet fuel prices, and a similar momentum remains likely from Asian airline results due in the week.

Singapore Airlines has recently reported a 400% increase in passenger traffic in January from last year amid year-end traffic and the Lunar New Year holiday, but it is still trading below historical averages and at a discount to its regional peers. Qantas is expected to return to profitability, and also appears undervalued despite being up 55% from its 2022 lows. Air New Zealand also reports this week.

Singapore banks remain a key dividend play

Singapore’s largest bank DBS (D05:xses) reported bumper Q4 earnings last week, and declared a special dividend. The other two banks, UOB (U11:xses) and OCBC (O39:xses) will be reporting this week and are also likely to show resilient earnings. UOB reports on Thursday pre-market and may be able to garner gains in net interest income and show a greater impact from the acquisition of Citi’s retail banking business, but that will be offset by lower wealth management fee amid continued investor caution. OCBC's profit remains more vulnerable than that of DBS and UOB due to its large wealth-management and insurance businesses, which account for 50% of non-interest income.

Commodity giants BHP, Rio Tinto and agricultural producer Wilmar also on tap

Resource company BHP Group (BHP:xnys) reports earnings before Australia open on Tuesday, and dividend payout is expected at USD 0.88, well below the USD 1.50 declared in February 2022 amid the Oz Minerals acquisition being in play. Market expects lower revenues and earnings compared to last year due to the weakness in iron ore and copper prices. Rio Tinto (RIO:xlon) reports full year results on Wednesday, and plans for Pilbara (PLS:xasx), its lithium arm, will be key to watch. The focus will also be on BHP and Rio’s upcoming projects and outlook for the year ahead, with supply constraints reigning and expectations of Chinese demand picking up. Another lithium player Allkem (AKE:xasx) also reports results this week. On the agri side, Singapore’s Wilmar (F34:xses) is expected to report record profits for 2022 and outlook is likely to remain positive as well with China demand picking up.


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 (
- Full disclaimer (

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

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. Android is a trademark of Google Inc.

©   since 1992