Asian Macro Initial Thoughts: Japan Tokyo inflation higher than expected, data light day going into the weekend but tariffs/Trump comments still the swing factor

New Zealand and Australia closed for Anzac day - lest we forget.

Overview.
Markets overnight rallied but we have seen that before. I think part short covering and hopes that Trump will walk back on tariffs. But while Trump says there are talks with China, he said ’them’ but did not identify who ’them’ referred to. I tend to believe the Chinese on this, Trump is known to tell lies to make himself look better, he just can’t stop himself. US Airlines under pressure are cutting schedules which could again hurt the US consumer. Similarly press says the administration is considering whether to reduce certain tariffs targeting the auto industry that automaker executives have warned would deal a severe blow to profits and jobs. One measure would spare automobiles and parts already subject to tariffs from facing additional duties from levies on steel and aluminum imports, people familiar with the matter said. That would eliminate so-called “stacking” of levies. But Trump denies it.

Trumps Executive Orders getting blocked by Federal Judges; I think there will be a lot more of those coming in the coming days and that means more uncertainty ahead.

I watched a very good interview with Professor Jeffrey Sachs, he points out the Trump is invoking powers that are not invested in him, but granted him in instances of National Emergency. Hence why everything is now a national emergency… it’s a power grab for a man who wants to be King. Article 1, Section 8 of the Constitution grants the power to Congress not the president. It also sets out that legislation should start in the lower house, then congress, then to the president for sign off. Only since the end of WWII has Congress devolved power to the president but on the understanding that it would only be used in cases of National Emergency. Trump is currently abusing that grant and it is really up to Congress to put a stop to the abuse. Some are going that the courts will step in but the real blame for the forthcoming global slow down lies with congresses unwillingness to stand up to Trump. Congressional elections take place every two years. At that time, one-third of the Senate (senators serve 6 year terms) and every seat in the House of Representatives is up for election. The midterm elections will be in November 2026. Let’s hope congress wakes up soon to their responsibilities.

Blank sailings from China are rising, ones that don’t take place because they are no goods to be transported; they were 12% last week and expected to hit 25% this week. That’s a lot of goods not going to America. Even if some are diverted to third countries and then to America… there are going to be shortages and price rises and that is why Powell is waiting. Tariffs are a one time price rise… if they are held steady but if they lead to shortages that will create inflation and that is what is worry the Fed. China isn’t paying the tariffs they are paid by the importer when he goes to collect the goods at the port of entry into the US… if he can afford them. We could see goods piling up at the docks because the small importers cannot pay the new tariffs. Another spanner in the works of supply chains. Remember during covid containers were in short supply … we could see a re-run of that.

Trump says a peace deal almost reached with Russia… but again I think that is bluster and Russia is just being played by Putin.

Housekeeping
On Thursday afternoon I was be on RTHK’s The Close, with host Nitin Dialis and Priyanka Kishore; Director and Principal Economist at Asia Decoded in Singapore. If you want to listen to the show you can find the show here:
https://www.rthk.hk/radio/radio3/programme/the_close

On Tuesday I was on RTHK’s Money Talk today with host Chloe Feng and Vishnu Varathan from Mizuho; discussing Trump and his tariffs; if your want to just listen to the show you can find it here
https://www.rthk.hk/radio/radio3/programme/money_talk

This Friday I will be on Peter Lewis’ Money Talk Podcast with regular guest Francis Lun, CEO of Geo Securities. You can listen to the show here

Looking for insightful independent research to help make sense of the current turmoil, to make sense of the current environment or have specific questions? then click on http://ERI-C.com it is a great platform where independent research vendors list their research and trading analysis. ERI-C is free to access, you can browse different independent research providers, most offer free trials; so worth a look.

A good one was yesterdays: Navigating Chaos by Andy Rothman

He has a unique perspective on China, having lived and worked there for more than 20 years as an American diplomat and a sell-side macro strategist. Andy first went to China as a student in 1980, returned as Foreign Service Officer in 1984, joined CLSA in Shanghai in 2000, and then went to the buy side with Matthews Asia in 2014. This year, Andy founded Sinology LLC, advising institutional investors and corporate directors on the risks and opportunities in the Chinese economy, and on navigating the rising tensions in US-China relations.

Andy just got back from two weeks of meetings in China, focused on prospects for the domestic economy and the impact of the tariff war, which he will discuss on an ERIC webinar this Today April 24th. Go to the website to listen to the recording if you didn’t sign up to hear it live.

Mark Tinker recently posted the Latest thoughts from Market Thinker - Unknown unknowns Pattern recognition has stopped working…. Gives an explanation of what has been happening in the markets recently. The key I think is that whilst we might not know exactly why things are happening it is important to be as unemotional as possible believe the indicators …. I was taught that when learning to fly in the RAF, the importance of believing the instruments not your feelings. He also draws attention to the fact that it was when the bond market started to go awry that there was a policy change, underlining that people in the administration do understand the importance of not undermining that part of the financial system.

Market opening indications and data

New Zealand - No Data Due - Markets closed Anzac Day Lest we forget

Australia - No Data Due - Markets closed Anzac Day Lest we forget

Japan
Market to open higher, Tokyo CPI stronger than expected +VE for BoJ normalisation.
Nikkei 225 Futures indicate +531pts +1.5% at 35,570
Chicago Futures +25pts 0.07% at 35,685
Singapore Futures +565pts 1.61% at 35,595

Yen closed weaker at 142.66 as USD weakened. Opened at 142.72 level. Now 142.87 after CPI data

Nissan downgraded its FY earnings forecast Thursday and today we get results from Nomura which I expect to beat.
Data Due pre open
Tokyo Core CPI Apr 3.4% YoY vs 2.4% Mar (F/cast is 2.7%)
Tokyo Core CPI Ex Food & Energy Apr 2% vs 1.1% Mar (F/cast is 1.4%)
Tokyo CPI Apr 3.5% MoM vs 2.9% Mar (F/cast is 3.1%)
Lunchtime
3 month Bill Auction vs 0.3716 prior

S Korea - No Data Due
Kospi to open higher but with caution, +VE on US rally and hopes of a tariff deal with the US.

Press reports that negotiators have agreed the framework for talks, which will continue next week.

On Thursday the Kospi closed -0.13% off the day lows. Trade volume was slim at 323.69 million shares worth 7.22 trillion won ($5.03 billion), with losers beating winners 457 to 403. Institutions and foreign investors net sold while individuals net bought. The local currency was quoted at 1,435 won against the greenback at 3:30pm Thursday, down 14.4 won from the previous session.

Taiwan - No Data Due
Market to open higher following the rally in the US but expect caution in the PM ahead of the weekend.

China - No Data Due
Markets to open slightly higher as Golden Dragon Index closed up 48pts 0.68% at 6,982
FTSE A50 CH Futures +37pts 0.28% at 13,284

Spot USD/CNY added 24 bps to close at 7.2931 Thursday (24th) close. As of 4:34 pm, USD/CNY in the night session dropped 77 bps. USD/CNH lost 65 bps to 7.2925, 6 bps above USD/CNY.
Friday USD/CNH Opening 7.2889 -0.0011 -0.02%

China denies it is negotiating US tariff deal, contradicting Trump which casts doubt on prospects for quick trade war de-escalation. It’s also called for all tariffs to be cancelled.
Data due Sunday
Industrial Profits (YTD) Mar YoY vs -0.3% Feb (F/cast is 0.1%)

Hong Kong
HSI to open higher after ADR’s closed 241 pts 1.09% at 22,160 with only BoC (3988) in the red which is likely to prompt an initial short squeeze.
Futures +170pts +0.8% at 22,080
Turnover on Thursday dropped to $204.76B vs $260.619B Wednesday continuing to fall from the $620.898 bn Monday (7 April).
Data Due after market
Business Confidence Q2 vs 10 Q1 (F/cast is 14)

Macau - Data Due after market
Inflation Rate Mar MoM vs -0.19% Feb (F/cast is -0.15%)
Inflation Rate Mar YoY vs -0.16% Feb (F/cast is 0.3%)
Unemployment Rate Mar vs 1.8% Feb (F/cast is 1.8%)

Singapore - Data Due pre market
URA Property Index Final Q1 QoQ vs 2.3% Q4 (F/cast is 0.6%)
Lunchtime
Industrial Production Mar MoM vs -7.5% Feb (F/cast is 1.1%)
Industrial Production Mar YoY vs -1.3% Feb (F/cast is 6.8%)

Malaysia - Data Due
Coincident Index Feb MoM vs -1.4% Jan (F/cast is 1%)
Leading Index Feb MoM vs -1.2% Jan (F/cast is 0.9%)

Thailand - could get
New Car Sales Mar YoY vs -6.68% Feb

Myanmar - No Data Due
Indonesia - Data Due
Philippines - No Data Due
Cambodia - No Data Due

Vietnam - No Date Due
VinFast CEO says no need to rush into 'loss-making US market’. Opening of North Carolina plant paused to 'bide time'

India - Data Due
Bank Loan Growth Apr 11 vs 11% prior
Deposit Growth Apr 11 vs 10.3% prior
Foreign Exchange Reserves Arp 18 vs $677.84B prior

Europe
Eurozone ECB Consumer Inflation Expectations
Germany No Data Due
France Business Confidence, Business Climate Indicator
United Kingdom Gfk Consumer Confidence, Car Production, Retail Sales, Retail Sales Ex Fuel

United States
Futures opened Dow 3pts 0.01%, S&P 0.34% and NDX 0.42%
After Market in US
Alphabet 7.5% after Q1 results beat; earning $2.81 per share on $90.23 billion in revenue for the quarter, while analysts surveyed by LSEG had expected $2.01 per share and $89.12 billion in revenue.
Intel -4.4% off initial low -6% after it’s outlook for the current quarter disappointed investors. Intel is calling for revenue for the period to come in at $11.8 billion dollars at its midpoint, less than the average estimate among analysts of $12.82 billion, and anticipates that earnings will be breakeven. The company also said it’s planning to cut its operational and capital expenses.
T-Mobile -5% despite its earnings and revenue for Q1 beating as it reported fewer wireless phone subscribers than the Street anticipated for the period, seeing 495,000 postpaid phone additions compared to the StreetAccount estimate of 504,000.
Skechers -6% after posting weak Q1 revenue and withdrew its 2025 guidance, citing “macroeconomic uncertainty stemming from global trade policies.” Skechers’ earnings, meanwhile, beat analyst estimates.
Boston Beer up 2% after it solidly outpaced Q1 estimates. It earned $2.16 per share on revenue of $454 million in the latest period. Analysts surveyed by LSEG anticipated a profit of 62 cents per share on $434 million in revenue. Tariffs could boost costs by $20 million or $30 million in fiscal 2025, it said.
Data Due Michigan Final (Consumer Sentiment, 5 year Inflation Expectations, Consumer Expectations, Current Conditions, Inflation Expectations), Baker Hughes Rig Counts.

HEADLINES & NEWS

JAPAN

Japanese and U.S. finance chiefs meet on Thursday for high-stakes talks on exchange rates that have drawn market attention as a venue where Washington could pressure Tokyo to prop up the yen and help it reduce the huge U.S. trade deficit. As the two countries proceed with separate bilateral talks on tariffs, the thorny currency rate topic has been set aside for Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent to discuss in Washington - the first face-to-face talks between the two. So far, Japan has revealed little on its strategy, saying it will negotiate with the U.S. based on a shared understanding that currency rates should be set by markets, and that excessive market volatility would have an adverse impact on growth. With broad-based dollar declines already having pushed up the yen to around 140 per dollar, Japanese officials are wary of taking steps to further strengthen the currency for fear of narrowing exporters' margins at a time of tariff strains. The hurdle is even higher to use Japan's monetary policy as a means to prop up the yen. The Bank of Japan is in no mood to rush into hiking rates at a time Trump's tariffs threaten to derail Japan's fragile economic recovery. For Japanese finance authorities, the focus would be to avoid being forced to make explicit exchange-rate commitments as part of a broader bilateral trade deal, as doing so could tie their hands in dealing with sharp moves in the yen.

Russia on Thursday accused Japan of treachery and complicity in theft after Tokyo last week signed an agreement to lend Ukraine over $3 billion for reconstruction, backed by the proceeds from frozen Russian assets. Japan signed an agreement with Ukraine on April 18 for the loan of 471.9 billion yen ($3.3 billion). Under the terms of the arrangement, the loan will be repaid with proceeds from Russian assets worth tens of billions of dollars which have been frozen in the European Union because of the war in Ukraine. The money is part of the G7's Extraordinary Revenue Acceleration for Ukraine (ERA) programme, which aims to provide Kyiv with $50 billion for reconstruction. Russian Foreign Ministry spokeswoman Maria Zakharova told reporters at a briefing in Moscow on Thursday that the loan would damage already poor relations between Japan and Russia. Russia said earlier this month it saw no reason to discuss the possibility of signing a long-awaited peace treaty with Japan to formally end World War Two because of what it called Tokyo's unfriendly stance towards Moscow.

Nissan Motor on Thursday announced a significant downgrade to its full-year earnings forecast for the year ended in March, another blow as the automaker faces a struggle for survival. It said it now expects to post a net loss of 700 billion to 750 billion yen ($4.91 billion to $5.26 billion) for fiscal 2024, its biggest loss ever. It had previously expected a net loss of 80 billion yen.

Toyota Motor (7203.T) said on Thursday that its overseas sales in March touched a record high for the month, fuelled by a surge in North American purchases ahead of U.S. import tariffs that came into effect in early April. The Japanese automaker sold 814,105 vehicles outside its home market in March, a 6.7% increase from year-ago levels. The company's sales in North America climbed 6.8% on strong demand and potential tariff effects. Toyota reported a 9.1% year-on-year increase in global production for March, marking the third consecutive monthly rise, with output reaching 880,476 vehicles. The figures include production and sales from its luxury Lexus brand.

Trump revs up debate about American cars' unpopularity in Japan. US blames trade barriers while others highlight size, efficiency and price

President Trump's energy security council plans to host a summit in Alaska in early June, when it hopes Japanese and South Korean officials will announce commitments to the Alaska LNG project, a source familiar with the matter said on Thursday. Trump has touted the $44 billion Alaska liquefied natural gas project, which would deliver gas from the state's North Slope fields via an 800-mile (1,300 km) pipeline for domestic use and send it to customers in Asia as LNG, bypassing the Panama Canal. While the project has been talked about for years, progress has been limited by cost and the amount of work needed. Trump, who has pushed allies to buy U.S. energy while simultaneously threatening trade tariffs, has asked Japanese Prime Minister Shigeru Ishiba to support the Alaskan plan. Last month, Taiwanese state energy company CPC Corp signed a non-binding agreement with the state-run Alaska Gasline Development Corp, to buy LNG and invest in the project, a move Taiwan's President Lai Ching-te said would ensure the island's energy security.

Separately, officials from Thailand, which could also be a consumer of the LNG from Alaska, and South Korea are expected to visit the state to talk about the project sometime in the next two weeks, said the source who spoke on the condition of anonymity.

Japanese investors were net buyers of overseas bonds in the week through April 19, as U.S. bond markets recovered somewhat after a heavy selloff earlier this month. Japanese investors had been net sellers of overseas bonds for six consecutive weeks, joining a broad pullback from dollar assets, driven by concerns over U.S. trade tariff announcements and President Donald Trump's economic policies.

SOUTH KOREA

The South Korean economy contracted in the first quarter, reflecting its struggle to rebound from sluggish consumption affected by political turmoil and poor export performance stemming from weak demand. Preliminary gross domestic product data from the Bank of Korea released on Thursday showed that the economy shrank 0.2 percent in the January-March period from the previous quarter, which was 0.4 percentage point lower than the central bank's earlier forecast in February of 0.2 percent growth. Compared to a year earlier, it contracted by 0.1 percent.

This marks the first GDP contraction since a 0.2 percent decline in the second quarter of last year and the first year-on-year contraction since the fourth quarter of 2020, when the COVID-19 pandemic disrupted the global economy.

The weaker-than-expected GDP figure increases the likelihood that Asia’s fourth-largest economy will fall short of the central bank’s full-year GDP growth forecast of 1.5 percent for 2025 and that the BOK will resume its easing cycle.

South Korea's nuclear power plant bid in Czech Republic clears hurdle as French appeals rejected. The Office for the Protection of Competition's decision to turn down the appeals by Electricite de France clears the way for the South Korean consortium, led by Korea Hydro & Nuclear Power to finalize the estimated 26.2 trillion-won (US$18.2 billion) project, Reuters reported.

Thailand has strong potential to expand its infrastructure and financial systems, underpinned by a resilient economy, according to speakers at the Ignite Thailand-Korea Business Forum held Tuesday. At the event, Suksit Srichomkwan, deputy secretary-general to the Thai prime minister, promoted the country’s 1 trillion baht ($30 billion) Land Bridge project. It aims to link the Gulf of Thailand with the Andaman Sea through a 90-kilometer highway and railway, offering an alternative to the congested Malacca Strait. “The EEC is about developing the east coast of Thailand. It would be more efficient to concentrate the development in a certain region rather than the entire nation,” Sukmanop said.

Lotte Biologics announced on Thursday that it has signed a manufacturing deal with a biotech firm based in Asia to produce a clinical-stage antibody-drug conjugate candidate. The deal represents the first major milestone in launching full-scale operations at the company’s ADC manufacturing facility, located at the Syracuse Bio Campus in the US state of New York, an expansion project that began in 2023. Through the contract, Lotte Biologics is officially introducing its ADC contract development and manufacturing services, tailored to support clients across all stages, from clinical trials to commercial-scale production.

Hyundai Motor Company achieved record-breaking sales and profit for the first quarter amid deepening concerns over the 25 percent tariffs on automobiles and car parts imposed by US President Trump. According to the carmaker’s earnings report on Thursday, its sales revenue increased 9.2 percent to 44.4 trillion won ($31 billion), while its operating profit climbed 2.1 percent to 3.6 trillion won from January to March compared to last year. Its operating profit margin hit 8.2 percent. Hyundai Motor’s first-quarter revenue and profit surpassed the market estimates by 2.2 percent and 2.6 percent, respectively. The company sold 1 million vehicles worldwide, a 0.6 percent decrease from the previous year, with sales outside Korea declining 1.4 percent to 834,760 units, impacted by unfavorable global market conditions. However, the North American market showed robust sales of 560,000 units.

LG Electronics said Thursday it has recorded its highest-ever first-quarter sales, driven by growth in its business-to-business sector, including the vehicle components and heating, ventilation, and air conditioning businesses. The tech giant reported sales of 22.74 trillion won ($15.9 billion) and an operating profit of 1.26 trillion won. This marks the first time the company’s first-quarter sales have surpassed 22 trillion won, setting a new record. LG’s first-quarter performance barely met local analysts’ expectations. According to the earnings consensus compiled by market intelligence firm FnGuide, sales were projected to be 22.74 trillion won, and operating profit was expected to be 1.26 trillion won. Net profit also surged to 875.6 billion won, up 49.6 percent from the same period last year.

SK hynix posted its second-highest quarterly operating profit of 7.44 trillion won ($5.2 billion) for the January-March period this year, up 158 percent on-year. Achieving the record performance during the seasonal slowdown, the memory chip maker attributed its success to robust demand for high-value artificial intelligence chips and stockpiling ahead of anticipated US tariffs. A leading supplier of the popular high bandwidth memory chip, SK hynix reported Thursday that it has recorded quarterly sales of 17.6 trillion won, soaring 42 percent. With the strong performance, SK hynix has overtaken its larger rival Samsung Electronics in the global DRAM chip market during the first quarter, according to analysts.

TAIWAN

The US is considering providing the navy with Jump 20 uncrewed aerial vehicles to strengthen its mid to long-range reconnaissance capabilities and support its development of a new-generation reconnaissance drone, a source familiar with the matter said yesterday. The US previously provided drones of the same type to the Coast Guard Administration in 2022, the source said, adding that the drones offered to the navy, although of the same kind, would have more advanced specifications. The drone was provided as part of the US foreign military financing program, the source said. The Jump 20 is among the first wave of drones developed under the US Future Tactical Uncrewed Aircraft System Program and has only been provided to Ukraine and Taiwan outside the US armed forces, the source said. The US has allegedly provided Taiwan “free military assistance” per the 2023 National Defense Authorization Act, including 80,000 sets of personal equipment and 1,000 M240B machine guns, the source said. The Ministry of National Defense has neither confirmed nor denied the reports.

Commercial property deals totaled NT$28.7 billion (US$882.29 million) last quarter, slumping 37 percent year-on-year, as global economic uncertainty and lingering credit controls in Taiwan chilled the market, Colliers International Taiwan said yesterday. “Unclear US tariff policies are driving manufacturers to reassess their global presence and production base locations, with the possibility of postponing expansion or investment plans,” Colliers Taiwan senior research director Eilleen Liang said. Owner-occupiers underpinned commercial real-estate deals during the January-to-March period, as companies such as Uni-President Group, Micron Taiwan, ASMedia Technology Inc and Wendell Industrial Co bought properties to bolster their operations, the company said.

Delta Electronics Thursday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new systems are able to charge heavier vehicles within 30 minutes for long-distance travel, and their capacity can be expanded to 3 megawatts using a power cabinet. However, the accurate capacity of the 3 megawatt charging solution is still being tested, Delta said.

CHINA

Reasons why China is waiting is probably because Trump is could demand that the yuan trade freely on foreign exchange markets and that limits on capital flows into and out of the country be removed. Free convertibility of the yuan would likely result in the appreciation of the Chinese currency and damage the country's export-reliant economy. As for liberalizing capital transactions, doing so would disrupt the stability of the communist regime, which attaches importance to the public ownership of companies and land. At least for now, these potential consequences will prevent Beijing from holding trade talks with Washington. But long term convertibility of the Yuan could put it in a stronger position for pushing the USD out of Asia as the currency of trade.

China called for all "unilateral" U.S. tariffs to be cancelled on Thursday, as signs emerged that the Trump administration may de-escalate its trade war with Beijing. China also clarified it has not held trade talks with Washington despite repeated comments from the U.S. government suggesting there had been engagement. U.S. President Donald Trump has repeatedly said that the U.S. will have a deal with China and on Wednesday said there was "direct contact" between both countries. Trump, who calls his tariffs "reciprocal", says the duties aim to correct unfair trade imbalances with the U.S. The U.S. should remove all "unilateral tariff measures" against China "if it truly wanted" to solve the trade issue, Commerce Ministry spokesperson He Yadong said on Thursday. "The person who tied the bell must untie it," he told reporters at a regular press conference.

Tariff-hit China exporters reluctant to heed government calls to sell locally. Beijing has made increasingly louder calls on exporters to find local buyers as an alternative to the U.S. market, now frozen after Washington hiked tariffs on Chinese goods by 145%, but firms are concerned about complications in making the switch. Key being is that local profit margins are much lower than exporting and increased cash flow risks as domestic partners are unstable.

HONG KONG

Buybacks - None reported

HSI Short Selling Thursday 17.01% vs 16.8% Wednesday
Top shorts MTRC (66) 56%, Chow Tai Fook (1929) 37%, BYD (1211) 36%, Nongfu Spring (9633) 35%, Haidlao (6862) 35%, HK & China Gas (3) 35%, Bud APAC (1876) 34%, Xinyi Solar (968) 34%, Sunny Optical (2382) 34%, CK Asset (1113) 33%, Longfor Group (960) 32%, Hang Seng Bank (11) 32%, Tingyi (322) 31%, Sands China (1928) 31%, Wuxi Bio (2269) 29%, PowerAssets (6) 28%, Xinyi Glass (868) 27%, CKI (1038) 27%, Li Auto (2015) 27%, NTES-S (9999) 27%, Sinopharm (1099) 26%, Wuxi Apptec (2359) 26%, China Res Beer (291) 26%, Bidu (9888) 25%, Meituan (3690) 25%, JD Health (6618) 25%, Wharf REIC (1997) 25%.

WATCH
CHOW TAI FOOK (01929.HK)'s Q4 ended 31 March 2025 retail sales value (RSV) dropped 11.6% YoY. Of which, the RSV in Mainland China fell 10.4%, while that in Hong Kong, Macau and other markets decreased 20.7%. During the quarter, the Group optimized retail network and net closed 395 CHOW TAI FOOK JEWELLERY POS in Mainland China. The Group opened one POS in Hong Kong and Macau, meanwhile, it closed 3 POS in Japan and Vietnam.

NEW WORLD DEVELOPMENT announced With effect from 1 May 2025, Sonia Cheng has been appointed as a member of the Nomination Committee; Henry Cheng will cease to serve as the chairman and a member of the Nomination Committee; and John Lee has been appointed as the chairman of the Nomination Committee, according to NWD’s announcement. Sonia Cheng is the daughter of Henry Cheng.

HKEX (00388.HK) announced that it had entered into an agreement with Hongkong Land to establish its permanent headquarters at Hong Kong's Exchange Square, which includes the top nine office floors in One Exchange Square and additional space adjacent to HKEX Connect Hall at Levels 1 and 2 of the building, for a total investment of $6.3 billion. HKEX Chairman, Carlson Tong, said that establishing HKEX's permanent home at Exchange Square has unveiled the next chapter of its future development. HKEX will work with Hongkong Land to develop its headquarters and to elevate this symbol at the heart of the financial industry, which also reflects its commitment and confidence in the long-term vibrancy of Hong Kong as an international financial center.

A relevant official from the Shenzhen branch of ICBC (01398.HK) (601398.SH) revealed at the second 2025 press conference held by the Shenzhen Financial Regulatory Bureau that as of the end of 2024, the balance of inclusive loans at ICBC's Shenzhen branch reached RMB180.7 billion, with an average growth rate of 65% over the past five years, serving nearly 50,000 inclusive loan clients.

A related person in charge from CCB (00939.HK) (601939.SH), Shenzhen Branch disclosed at the Shenzhen Financial Regulatory Bureau’s second press conference of 2025 that the branch’s inclusive finance loan balance as of March stood at RMB357.7 billion, with 104,000 inclusive finance clients. Both loan volume and client numbers ranked first among the four major banks. Over the past five years, CCB Shenzhen disbursed over RMB900 billion in inclusive loans, serving more than 140,000 small and micro enterprises, the person revealed.

LEAPMOTOR (09863.HK) as indicated by market rumors, will supply its electric vehicle (EV) platform and electronic system architecture to Hongqi, a brand under FAW Group, and is currently in discussions with Ferrari, a luxury sports car manufacturer, about licensing the EV platform. As an eminent brand under FAW Group, Hongqi holds significant influence in China. LEAPMOTOR's collaboration with Hongqi could enhance its brand image and market recognition. Meanwhile, if a partnership with Ferrari is forged, it could expand LEAPMOTOR's presence in the high-end market and accelerate the application and commercialization of EV platform technology.

SENSETIME-W (00020.HK) signed a Memorandum of Understanding (MOU) with the Faculty of Law of The Chinese University of Hong Kong Thursday (24th), in which the two sides will jointly develop legal information AI model based on SENSETIME-W's Cantonese foundation model, Sensechat, to help the digital transformation of the legal system and the industry.

EEEGU Survey: 90% of Local Catering Sector Workers Oppose Importation of Foreign Workers as Invoke on Unemployment Hikes; Establishment of Braking Mechanism Appealed. 73% of the local workers interviewed indicated that their companies had imported foreign workers, The Hong Kong Federation of Trade Unions (HKFTU)'s Eating Establishment Employees General Union (EEEGU) released the findings of a survey on the impact of labor importation on local workers saying. Of which, the percentage of those who had imported 11 or more foreign workers was as high as 21.9%. The EEEGU conducted an opinion survey from 26 March to 16 April 16 2025, and received 2,054 valid replies. In the face of labor importation, 90.7% of local workers took an opposing stance. The most important reason (90.8%) is that labor importation will affect the employment opportunities of local workers, especially as grassroots jobs would be replaced by imported workers. There has been a significant increase in the number of unemployed workers seeking help recently, and many of them have reflected that the recruitment messages in online job seek groups are “crying up wine but selling vinegar”, according to the EEEGU.

The Development Bureau announced on Thursday that it has successfully received eight expressions of interest (EOI) from various entities for the development of a new marina at the expansion area of the Aberdeen Typhoon Shelter, following an invitation to the market issued on January 24 and concluding today. According to a bureau spokesperson, the submissions were made by a diverse group of participants, including local and overseas developers, as well as hotel, entertainment, and marina operating groups. The bureau plans to consolidate and analyze the feedback to refine the development parameters and requirements for the marina. This analysis will support the undertaking of various technical assessments and the necessary statutory procedures. The spokesperson noted that if a feasible market proposal emerges from the EOI that could expedite the process, the bureau is open to considering an earlier tendering date than the currently anticipated 2027.

Thursday closing in EUROPE & US
DAX 0.47%, CAC 0.27%, FTSE 0.05%
European markets opened slightly lower; CAC and DAX dipped initially (Acting German economy minister Robert Habeck said that the German economy was now expected to stagnate in 2025; a projection that marks a downward revision of the 0.3% growth forecast made in January. Growth expectations for 2026 were trimmed slightly to 1%, from a previous 1.1% estimate) but then worked better through the day. FTSE traded in the red in a tight range range just below flat, selling down mid afternoon but then rallied into the close. Trade uncertainty the key concern but corporate earnings also in focus; Kering weak after Q1 earnings disappointed markets.

Austrian central bank chief Robert Holzmann said euro zone interest rates should be held until more clarity emerges on the path of U.S. tariffs and European Union countermeasures.

Adidas 2.52% after beating growth expectations with sales of 6.15 billion euros ($6.98 billion) for the first quarter of 2025. Setting it apart from Nike and Puma who saw more weakness.

Unilever 0.33% despite an initial rally after it beating estimates for Q1 sales, led by price increases and solid demand for its premium products, and said it expected limited direct impact from tariffs on its business.

Delivery Hero 1% reported “solid” first-quarter results, showing 5% growth in ecommerce sales but was initially sold down but then worked better for the rest of the day.

Dassault Systèmes -5.1% off initial lows of 7% after its Q1 earnings missed expectations.

British fintech firm Revolut on Thursday announced it topped $1 billion in annual profit for the first time, a major milestone for the company as it readies the launch of its U.K. bank later this year.

Anglo American, one of the world’s largest diamond miners, has lowered the production of rough diamonds by 11% to 6.1 million carats in the first quarter, the company said in a trading update.

DOW 1.23%, NDX 2.74%, S&P 2.03%, Russel 2K 2%
US markets opened mixed but worked better through the day to close at day highs. Investors buying megacap tech names, as investors continued to look for signs of progress on the global trade front. Despite China denying there were any trade talks taking place. I think this could be a combination of short covering and a ‘hope rally’; hoping that Trump will relent on tariffs.

Treasury Secretary Scott Bessent said that the Trump administration may reach “an agreement on understanding” on trade with South Korea “as soon as next week.” The framework is in place now we wait to see how it progresses.

Northrop Grumman -1% bringing its total weekly losses to more than 13%, since it cut its full-year guidance and reported losses on its B-21 bomber program due to rising costs.

Hasbro 14.58% after a strong earnings report.

Bridgewater Associates co-chief investment officers said that the world is undergoing a “rapid shift to modern mercantilism” that will likely hurt financial assets and the economy. “We expect a policy-induced slowdown, with rising probability of a recession,” the CIOs wrote.

Banks JPMorgan Chase 1.56%, Citigroup 2.81% Wells Fargo 2.38%, Amex 2.76%
Ecommerce Meta 2.48%, Apple 1.84%, Amazon 3.29%, Netflix 4.5%, Disney 3.12%, Zoom Video 3.65%, Alphabet 2.38% and Microsoft 3.45%,
Tech NXP Semi 7.02%, Nvidia 3.62%, Micron 6.16%, AMD 4.51%, Skyworks 4.84%
Industrial/Discretionary Boeing 2.26%, Caterpillar 3.75%, Simon Property 1.91%, Kohl’s 4.77%, Nordstrom 0.41%, Gap 4.06%, United Airlines 1.5%, Carnival 1.19%, Wynn Resorts 3.12%
Energy Chevron 1,75%, Exxon Mobil 1.17%,
Consumer Staples Campbell Soup -2.08% General Mills -1.55%, JM Smucker -1.62%

DAILY DATA
USD weaker on Trump U turns, Bitcoin -0.13% at 93,240.66, VIX -6.96% at 26.47,
US T10 -8 bpts to 4.307% and T2 -7 bpts at 3.789%
OIL Brent 0.2%, WTI 0.3% on mixed economic news, possible OPEC+ output increase
Gold 2.04%, Silver 0.02%, Copper 0.78% Platinum -0.18%, Palladium 0.92%.