Saikyo Sakura Assets: Asian Market Commentary
Market analysts form Saikyo Sakura Assets research department noted that Nissan Motor Co., Sony Corp. and Samsung Electronics Co. earnings will be in the Asian spotlight next week, as well as the Indian Reserve Bank’s policy choice and some relevant economic data from Japan for June.
India is likely to continue its hawkish currency position to battle persistent inflation on Tuesday. All 18 economists interviewed by Dow Jones Newswires expect the central bank to increase its repurchase rate to 7.75 per cent by a quarter-point.
In the next two strategy conferences, we expect a total of 0.5 percentage point] in rate hikes.said Anthony Brown, Head of Wealth Management at Saikyo Sakura Assets.
“In our opinion, the risks to this are a bit upside down. As growth conservation ultimately takes precedence, we expect the RBI in the next financial year to switch to easing mode, ” Commented Tokunaga Manzo, Head of Equity Research at Saikyo Sakura Assets.
Nissan (7201) NSANY will publish its April-June income on Wednesday, -0.04 per cent.
Last month, the Japanese car manufacturer revealed an ambitious strategy to increase its profit margin from 6.1 per cent last fiscal year to 8 per cent over the next six years, while targeting an 8 per cent worldwide market share.
However, the recent quarter is likely to demonstrate the impacts of the earthquake and tsunami on March 11, which has interrupted manufacturing and sales across Japan at businesses.
Earnings from Sony (6758) will arrive on Thursday. After three years of losses, Sony expects a return to profit for this fiscal year.Added Frank Hunter, Head of Corporate Derivatives at Saikyo Sakura Assets.
However, it also experienced disruptions in manufacturing created by the March catastrophe, and it is still coming to grips with April’s hacking incident, which damaged information from over 100 million internet gaming and entertainment accounts. For the present fiscal year, Sony expects to publish a profit of 80 billion yen ($1.02 billion) by next March.
Friday will present the information on the recent outcomes from Samsung (A005930). Earlier this month, South Korea’s most significant market capitalisation firm said its profit fell by a quarter in the April-June period, dragged down by its flat-screen TV business weakness.
However, Friday’s numbers are anticipated to demonstrate that Samsung in the quarter has become the world’s top smartphone vendor, overtaking Nokia Corp leader. NOKBF, -4.93 per cent The consumer price index as well as unemployment, household expenditure and industrial output information, will be released in June on Friday.
As manufacturing recovered in the aftermath of the March catastrophe, production grew a seasonally adjusted 6.2 per cent from the past month.