Earnings to Ring In Year of the Horse
The Reserve Bank of India holds its first policy meeting of the year, and these two Korean tech companies will report before the Lunar New Year holidays.
Reuters Reporter Sareena Dayaram says, “It’ll be a relatively quiet week ahead in Asia with the Lunar New Year holidays kicking off, but investors will still be watching snippets of economic data and company report cards from across the region.”
Come Monday, South Korea’s LG Electronics will release its fourth quarter earnings for 2013. Reporting its lowest quarterly profit of 2013 in October, the world’s number two TV maker watched its mobile business slip into the red. With domestic rivals Samsung Electronics (SSNLF) and Apple (AAPL) on the scene, LG still struggles in the smartphone market.
More earnings are rolling around in Korea come this Tuesday. This time it’s SK Hynix, the world’s second-largest memory chip maker. After reporting record profits over the last two quarters, this Apple supplier is prepared for a weaker fourth quarter. On the very same day, Raghuram Rajan, Indian central bank chief, will conduct his first policy meeting of 2014.
Raghuram is already starting this year aggressively as he continues to hike the rates. His overall goal is to curb the runaway prices. However, the huge downfall… is that all of this change is at the expense of economic growth.
Reuters Reporter Sareena Dayaram says, “But Rajan surprised markets in the previous meeting by holding rates steady, which he’s expected to do again next week as inflation eases.”
Most regional markets will be closed on Friday for the Lunar New Year. But in Japan it will be business as usual. And thanks to strong car and motorbike sales, Honda Motors (HMC) has potential to reports its best annual profit in five years.
Reuters Reporter Sareena Dayaram, says, “Investors will also get a health check on the Japanese economy with a series of indicators including factory activity and household spending.”