In today’s briefing:
- Ohayo Japan | Record Highs…again
- Japan Morning Connection: Risk-On Sentiment and Yen Weakness to Drive the NKY Higher
- HK Banks – Surging Deposits and Contracting Loans, Sees LDR Fall Toward GFC Levels
- Will China’s Stock Market Continue to Soar? – Here Is the Outlook and Investment Strategy
- How Geopolitical Conflicts Influence Financial Markets?
Ohayo Japan | Record Highs…again
- Stocks advanced for a second straight session Wednesday, with the S&P 500 and Dow Jones Industrial Average closing at record highs
- Japan’s Prime Minister Ishiba dissolved parliament for an October 27 snap election, seeking mandate amid low public support due to a fundraising scandal
- Canadian retailer Couche-Tard has increased its takeover offer for Seven & i Holdings to $47 billion, up from $38.5 billion
Japan Morning Connection: Risk-On Sentiment and Yen Weakness to Drive the NKY Higher
- Risk on sentiment takes hold ahead of key CPI print tomorrow; yen weakness will drive the NKY higher.
- Big gains for Japanese department store duty-free sales over the Chinese Golden week holiday bodes well for the likes of Isetan Mitsukoshi.
- Cat 5 Hurricane Milton making landfall should put further pressure on the JP non-life/P&C plays Sompo, MS&AD and Tokio Marine.
HK Banks – Surging Deposits and Contracting Loans, Sees LDR Fall Toward GFC Levels
- There is a sharp and accelerating rise in deposits with Hong Kong’s banks, likely from Mainland China in part
- There is no offsetting lending volume, where loan growth remains still negative, not a positive combination for net interest income
- The LDR for Hong Kong’s banks is fast approaching the distressed levels seen during the Global Financial Crisis (GFC)
Will China’s Stock Market Continue to Soar? – Here Is the Outlook and Investment Strategy
- At least 10% deposits will invest in Chinese stocks in the future.Together with US$2 trillion capital that stranded overseas will flow back, 3,500 Shanghai Composite Index is just the beginning.
- After the monetary policy, we expect to have accompanying fiscal stimulus policies introduced. However, short-term challenge lies in the uncertainty of macro environment that potential depression/Middle East war might bring.
- Investors can consider taking profits in time for the surge in Chinese stocks,and then prepare to position themselves for the inflation trade opportunities that the dollar depreciation will bring later.
How Geopolitical Conflicts Influence Financial Markets?
- We analyzed the historical data of wars and its impact on financial markets.
- Nifty 50’s performance shows short-term fluctuations post-conflict but generally stabilizes, highlighting market resilience and investor sentiment shifts during uncertainty.
- Diversification, Long term investment perspective and Govt Bonds help in these kind of situation to make portfolio stable.
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