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Edwards Lifesciences Corporation focuses on developing and marketing medical systems for cardiovascular diseases, with net sales primarily from heart valves and surgical products (67.9%) and hemodynamic monitoring systems (15.5%). Geographically, the company generates 58.4% of its sales in the United States, followed by Europe (22.2%), Japan (7.6%), and other regions (11.8%). UBS maintains a neutral recommendation on the stock.
MSTC is in the spotlight following the Cabinet's approval for the strategic divestment of its 100% subsidiary, Ferro Scrap Nigam Limited (FSNL), to Japan's Konoike Transport for Rs 320 crore, expected to close by mid-January 2025. The company, which manages various e-bidding portals and has secured contracts for FM radio wavelength allocation, is exploring new revenue models in infrastructure as a service for sectors like recycling, mining, and e-commerce, as stated by Bhanu Kumar during the earnings call.
South Korea's yield spread has improved significantly, with 5-year interest rates dropping to about 2.9% amid falling inflation expectations. While office cap rates have seen minimal expansion, strong investor interest persists due to a robust rental outlook. APAC GDP growth is projected at 3.9% for 2024 and 2025, despite potential geopolitical risks from a new US administration.
The 5-year interest rate swap has decreased to approximately 2.9% in 3Q24, reflecting falling inflation expectations, while office cap rates have only slightly increased, attracting strong investor interest due to a positive rental outlook. APAC GDP growth is projected at 3.9% for 2024 and 2025, despite potential risks from geopolitical shifts, particularly concerning US-China trade relations. Leasing activity varied across sectors, with office demand stable and retail remaining resilient, while capital markets showed signs of recovery, particularly in Australia and Singapore.
Global economies are growing, with the US showing a 2.8% annualized growth in Q3 2024, while inflation has moderated to around 2%. Interest rate cuts are underway, improving investor sentiment, though financing remains tight, particularly affecting the office sector, which continues to see declining values.
Asian stock markets are poised for diverging paths in 2025, with Hong Kong's Hang Seng Index recovering from a four-year decline but facing economic uncertainties, while Japan's Nikkei 225, after reaching a record high, grapples with potential volatility from interest rate hikes and external risks. Investor confidence in Japan remains strong, yet challenges such as U.S.-China trade tensions and internal political instability could impact its market trajectory. Both indices reflect a complex interplay of recovery prospects and macroeconomic factors as they head into the new year.
IG
Toyoaki Nakamura, a dovish member of the Bank of Japan's board, emphasized the need for caution in adjusting monetary easing in light of the economic recovery. Speaking in Hiroshima, he highlighted the importance of carefully assessing a wide range of data before making any decisions, suggesting that a rate hike this month may not have unanimous backing.
Stocks surged as rate cut expectations grew, with the S&P 500, Nasdaq, and Dow reaching record highs. Bitcoin approached $100,000, reflecting positive investor sentiment. Meanwhile, Brent crude futures rose 0.2% to $72.42 a barrel, and gold prices steadied at $2,649 an ounce. Asian markets showed mixed results, with Japan's Nikkei climbing 0.6% to a three-week high, while Hong Kong faced selling pressure.
Asian stocks rose in response to gains in the US market, while the yen strengthened to around 150 per dollar. Expectations for a Bank of Japan interest rate hike diminished following a report questioning the likelihood of an increase. Meanwhile, South Korea's won fell as officials called for calm after a surprising martial-law decree.
Market expectations for a Bank of Japan interest rate hike this month have significantly decreased, with the likelihood dropping to 40% from 66% in late November, following a local media report that raised doubts about an increase. As a result, the yen remains under pressure, trading weaker than the critical 150 per dollar level, despite recovering some losses after a 1.1% decline on Wednesday.

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