U.S. stocks fell as rising Treasury yields weighed on the market, with the S&P 500 down 0.92% and the Dow losing 0.96%. Tesla's shares surged 12% after beating earnings forecasts, while IBM's revenue missed expectations, leading to a 3% drop in its stock. Norges Bank's deputy CEO advised caution in the current geopolitical climate, suggesting more downside risks in equity markets.
Australia's largest pension funds are set to significantly increase their investments in unlisted assets amid rising financial risk concerns. AustralianSuper, managing A$341 billion, aims to raise its private asset allocation from 23% to over 30% within the next three to five years, according to Alistair Barker, Head of Asset Allocation.
Jitendra Gohil, chief investment strategist at Kotak Alternate Asset Managers, advises booking profits in the auto and auto ancillary sectors due to anticipated deceleration in growth rates and rising valuations. He remains optimistic about capital market plays, suggesting investors buy stocks related to the financialization of savings on dips.
Korea Zinc Co. shares surged 30% as investors anticipated the outcome of a stock buyback initiated by Chairman Choi Yun-beom to counter a $12.5 billion takeover bid. Trading at 1,138,000 won, the stock exceeded the 890,000 won buyback offer, indicating investor expectations for a higher proposal amid ongoing control disputes.
Asian stocks declined, with Japanese, South Korean, and Australian shares falling, while Hong Kong stock futures also dropped. The yen steadied after reaching its weakest level against the dollar since July. Futures for the Nasdaq 100 rose, buoyed by strong earnings from Tesla, as traders adjusted expectations for Federal Reserve rate cuts amid rising Treasury yields. The term premium on 10-year Treasury notes reached its highest since November.
Nippon Express Holdings Inc. is actively seeking acquisitions in India to accelerate its growth in the rapidly expanding market. Tadahiro Furue, a senior executive, indicated a willingness to incur debt for this purpose, emphasizing the importance of maintaining a strong balance sheet and achieving a 10% return on invested capital.
Horizon Robotics Inc. is set to debut in Hong Kong following a successful $696 million IPO, marking a resurgence in initial public offerings in the region. The Chinese company, specializing in autonomous driving systems, priced its shares at the top of the range amid strong demand from investors, including Baillie Gifford & Co. and Norway’s sovereign wealth fund. In pre-market trading, the stock surged by as much as 31%.
Seven & i Holdings Co. plans to split into two entities and expand internationally, aiming for group revenue of ¥30 trillion ($197 billion) by the 2030 fiscal year, nearly doubling from ¥17.7 trillion in 2023. CEO Ryuichi Isaka highlighted the strategy's focus on enhancing convenience-store operations abroad amid interest from Alimentation Couche-Tard Inc.
Stocks continued to decline, with the Dow and S&P 500 marking a third consecutive losing day. American Airlines and Southwest Airlines are set to report earnings, with American up 22% and Southwest up 13% over the past three months. In the utilities sector, Entergy and Consolidated Edison reached all-time highs, while Honeywell is next to report in a week filled with industrial earnings. Microsoft and Nvidia are also in focus, with both companies showing significant gains this year.
New Zealand central bank governor Adrian Orr expressed a desire for greater public engagement with the Reserve Bank's detailed 'Record of Meeting.' He emphasized that this report, which outlines the Monetary Policy Committee's considerations for rate decisions, provides the clearest insight into the bank's rationale, urging people to rely on it rather than media interpretations.
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