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February 11th - Ant Financials "Afu" has launched an Alipay red envelope campaign. New users who register through "Afu" from February 11th to February 12th can receive a 16.8 yuan Alipay red envelope.On February 11, Iranian Foreign Minister Araqchi stated in an interview that Iran is capable of reaching a new agreement on the nuclear issue that is superior to the Obama administrations Iran nuclear deal. He emphasized that this goal is achievable, and that Iran is not only capable of reaching an agreement better than previous ones, but also of providing credible guarantees against developing nuclear weapons. He pointed out that the nuclear weapons issue is the primary concern of all parties involved, and Iran can provide guarantees on this matter. Furthermore, Araqchi stated in the interview that Iran still does not have complete trust in the United States. The attack on Iran during negotiations last June was a very bad experience, and ensuring that such an incident does not repeat itself depends primarily on the United States.February 11th - According to the latest data released today (February 11th) by the China Association of Automobile Manufacturers, my countrys automobile industry maintained stable operation in January 2026. In January, automobile production and sales reached 2.45 million and 2.346 million units respectively, with production increasing by 0.01% year-on-year and sales decreasing by 3.2% year-on-year. Among them, the new energy vehicle market operated steadily, with production and sales reaching 1.041 million and 945,000 units respectively, representing year-on-year increases of 2.5% and 0.1%. Furthermore, the commercial vehicle market continued its positive trend, with both production and sales maintaining double-digit year-on-year growth in January. In terms of automobile exports, growth continued in January. Among them, new energy vehicle exports maintained rapid growth, reaching 302,000 units, a year-on-year increase of 100%.On February 11th, Citigroup issued a research report stating that China Literature Limited (00772.HK) issued a profit warning, projecting non-IFRS adjusted net profit for last year to be between RMB 800 million and 900 million, lower than Citigroups and market expectations. The bank estimates that New Classics Media may record a loss in fiscal year 2025, mainly due to delays in content production leading to limited drama series releases, a significant difference from Citigroups previous forecast of releasing six drama series in the second half of the year and recording RMB 243 million in profit. Profit from non-New Classics Media businesses may be RMB 1 billion, lower than Citigroups pre-earnings forecast of RMB 1.08 billion. Therefore, Citigroup believes that the lower-than-expected profit for China Literature in 2025 is mainly due to the limited content releases from New Classics Media, while non-New Classics Media businesses will only slightly underperform expectations. Given that the market is already aware of the content production delays, Citigroup believes that the disappointing performance of New Classics Medias business should not be surprising. Citigroup expects the market to lower its profit forecast for China Literature in response to the profit warning, and the share price is expected to decline. Citigroup maintains a buy rating on China Literature with a target price of HKD 38.On February 11th, Citigroup released a research report predicting that Pop Marts (09992.HK) IP-centric diversification strategy will enhance its ability to withstand IP cyclical risks and revitalize new demand. Citigroups weekly data tracking shows a recent upward trend in app downloads, particularly in China and the US, which Citigroup attributes primarily to the launch of its new Skullpanda x My Little Pony series. Looking ahead to 2026, Citigroup predicts that the groups breakthroughs in IP diversification, product innovation, and monetization capabilities across a wide range of sectors will drive growth. The report mentions that the groups other iconic IP products, such as SKULLPANDA and CRYBABY, are becoming new growth drivers and have their own fan bases, proving they are not simply substitutes for LABUBU. The report predicts that non-LABUBU IPs have upside potential this year, and recent global consumer surveys also suggest that interest in non-LABUBU IPs in overseas markets may be underestimated. Citigroup has given Pop Mart a "Buy" rating with a target price of HK$415, based on a P/E ratio of 28x for 2026 earnings. The group commands a premium compared to most global toy and IP peers, likely due to its rapid growth driven by overseas expansion. Citigroup also believes Pop Mart deserves a premium over its domestic competitors due to its leading position.

Asian stocks decline as Wall Street euphoria wanes

Aria Thomas

Jun 22, 2022 11:37

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Asian equities fell in tumultuous trading on Wednesday, failing to continue Wall Street's advance as ongoing concerns about interest rates and inflation remained a top priority for investors, and as the Japanese yen reached a new 24-year low versus the dollar.


Asian equities fell in tumultuous trading on Wednesday, failing to continue Wall Street's advance as ongoing concerns about interest rates and inflation remained a top priority for investors, and as the Japanese yen reached a new 24-year low versus the dollar.


MSCI's broadest index of Asia-Pacific equities outside Japan lost 1%, but was up 1.39 % from its more than five-week low on Monday. The Tokyo Nikkei gave up early gains and remained unchanged.


Investors continue to evaluate how concerned they should be that central banks would force the global economy into a recession as they strive to curb soaring inflation with interest rate hikes.


Overnight, the major U.S. stock indexes gained 2% on the potential that the economic picture may not be as bleak as feared during trading last week, when the S&P 500 recorded its worst weekly percentage fall since March 2020.


"I believe that the current post-holiday bear market recovery is a reflection of investors' anxiety as to whether inflation and Fed hawkishness have reached their apex — I think we're near," said Invesco's global market strategist for Asia Pacific, David Chao.


Even while I believe global stock markets will conclude the year higher than where they are currently, it is possible to anticipate continuing market volatility until it becomes evident that the Fed will not push the U.S. economy into recession in order to combat persistent inflation.


S&P 500 and Nasdaq futures dipped nearly 0.5 percent, indicating that Wall Street may not be able to duplicate Tuesday's rise.


Chinese blue chips were down 0.4%, Hong Kong's Hang Seng Index was down 0.9%, and Korea's KOSPI was down 1.78%.


The chairman of the U.S. Federal Reserve, Jerome Powell, is scheduled to begin his testimony before Congress today. Investors are waiting for more hints on the likelihood of another 75 basis point rate rise at the Fed's July meeting.


Most other global central banks are in a similar position, with the exception of the Bank of Japan, which committed last week to retain its ultra-low interest rate policy.


The disparity between low interest rates in Japan and increasing interest rates in the United States has weighed on the yen, which touched a record 24-year low of 136.71 per dollar in early trade before recovering to 136.18.


Wednesday's publication of the minutes from the Bank of Japan's April policy meeting revealed the central bank's worry about the effect of the falling yen on the country's economic climate.


On Wednesday, other currency movements were more subdued, with the dollar index, which monitors the greenback versus six rivals, edging up to 104.6.


At 3.2674, the yield on benchmark 10-year U.S. Treasuries remained relatively stable.


A person briefed on the proposal told Reuters that U.S. President Joe Biden is anticipated to ask for a temporary suspension of the 18.4-cent-per-gallon federal tax on gasoline on Wednesday.


Brent declined 2.1% to $112.27 per barrel, while U.S. crude slid 2.21 percent to $108.09 per barrel.


The spot price of gold decreased 0.21 percent to $1828.70 per ounce.


Bitcoin continues to trade at $20,640 a week after reaching a low of $17,592.