Asia 240409 Morning Wrap

Morning!

Making this a quick wrap today. Overnight saw optimism fueling into the market again over Mariott, Ebay and Cnoocphillips. This translated to an increase in risk appetite over the currency market, as we see AUD, CAD, EUR and GBP all going back up towards their uptrend movement.

A quick note should also be taken from US financials that went up by more than 3% from positive earnings. Asia may take cues to start off financials on a positive note amid continual deterioriation in consumer credit in banks that may induce further write offs.

Bullish sentiment overnight from commodity may also see some support for the oil stocks, however, we remain neutral over materials as industrial metals continue to stay weak.

Consumer stocks may continue its run from the bullish idea over consumption recovery. We may expect Autos to continue its runs while we see lodging stocks to follow US cues for a green day.

Although we continue to favour the precious metal play, we may see some setback today due to the overall bullish tone on the market last night.

Having said our expectations for individual sectors, however, I personally continue to believe the markets should be relatively flat as investors remains cautious over the upcoming data.

As for our trade recommendation we believe:

1. Toyota (2703.T) remains a buy.
2. Oil Search (OSH.AX) may be a buy.
3. Geely Auto (175.HK) is a buy.
4. Regal Hotels Intl Holdings (78.HK) is a buy.

Good luck to all and happy trading for today!

ongy out.