Asia is entering its busiest earnings week, and investors are likely to focus on results from Chinese and Hong Kong-listed banks for insights into the impact of Beijing’s recent stimulus measures.
According to Bloomberg data, 544 companies within the MSCI Asia Pacific Index, including Industrial and Commercial Bank of China Ltd., are set to report results this week. Traders will closely monitor statements from Chinese banks for any signs of rising credit demand, which could indicate a recovery in consumer confidence. Chinese banks have recently faced challenges with slowing profit growth and narrowing interest margins.
Hong Kong-listed banks, such as HSBC Holdings Plc., will also be in the spotlight following HSBC’s corporate restructuring announcement.
In currency markets, the Japanese yen dropped by as much as 0.9% to 153.69 per dollar on Monday, reaching its weakest level in three months, following Prime Minister Shigeru Ishiba’s failed gamble to call a snap election.
The weaker yen, which benefits Japan’s export-driven economy, contributed to a 1.6% rise in the Topix index.
Meanwhile, oil prices fell in early Asian trading as markets responded positively to news that Israel’s Saturday airstrikes on Iranian military targets had left the country’s oil facilities unscathed.
