In today’s briefing:
- Ohayo Japan | US Scores 5% Weekly Gain
- HK Strategy: What Are Some of the HSI Laggards to Pick Up?
- Japan Morning Connection: Markets Uncertain to Start the Week After Moody’s US Downgrade
- US Banks – C&I Loans +10.1% YoY in Apr From -2.9% in Jan, Strong Read-Through, Banks & Economy
Ohayo Japan | US Scores 5% Weekly Gain
- Stocks rallied as tech led gains; S&P 500 rose 5.3% for the week, Virgin Galactic jumped 42%, while Novo Nordisk dropped 4% on CEO exit.
- Nikkei dipped slightly to 37,753 yen, pressured by yen appreciation and negative Q1 GDP, while TOPIX rose 0.09%
- Orbis Investments opposes Aeon’s takeover and Welcia merger, criticizing the undervalued 11,400 yen offer and unfair share exchange ratio.
HK Strategy: What Are Some of the HSI Laggards to Pick Up?
- The HSI has already recovered to 2.2% above the pre-“reciprocal tariff” level, and the top 10 best-performing constituents have registered an average return of 15.6%.
- Despite so, there are still 40 under-performing stocks, with 32 of them remain in the negative zone with an average of 4.8% loss.
- Among them, ZTO Express Cayman (2057 HK), Budweiser Brewing APAC (1876 HK), BYD Electronics (285 HK), and Meituan (3690 HK) look well-positioned to catch up.
Japan Morning Connection: Markets Uncertain to Start the Week After Moody’s US Downgrade
- Pockets of strength in US Tech Friday with Coreweave, SMCI, Micron up with semi-caps generally lower after ASML nos.
- Potential replacements for a NTT Data NKY deletion should continue to find a bid.
- JP retailers J-Front and Matsuya squeezed sharply Friday after social media post highlights activist involvement.
US Banks – C&I Loans +10.1% YoY in Apr From -2.9% in Jan, Strong Read-Through, Banks & Economy
- There is strong and accelerating growth visible in HFD for US banks, even in the very core bucket of C&I loans
- Most recent full month shows 10.1% growth YoY for C&I but Other Loans are up 27.3% Yoy in the same month, which is partly C&I
- Deposit distribution is improving, toward CASA, US banks can see better NIM, and net interest income, while economy appears from weekly bank data
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