Market Insights: April 28th, 2024

Currency Markets:

• USD to JPY Exchange Rate Decline: The exchange rate of the US dollar to the Japanese yen has continued to fall, reaching a new low for the first time in 34 years. Analysts generally believe that the policies of the Bank of Japan and the strength of the dollar are among the main reasons for this trend. While the weakening of the yen has brought certain benefits to some industries in Japan, such as the boom in tourism and increased competitiveness for exporters, it has also raised concerns about the long-term impact on the Japanese economy, especially regarding inflation rates and capital flows.
• Currencies From Multiple Countries Fall Against the US Dollar: Recently, not only has the Japanese yen fallen against the US dollar, but other emerging market currencies, such as the South Korean won, the Indian rupee, and the Indonesian rupiah, have also experienced depreciations. Observers believe that the appreciation of the dollar, driven by Federal Reserve policies, is causing capital outflows from emerging markets.

Technology Sector:

• TSMC Technology Symposium North America Summit: TSMC hosted its 2024 Technology Symposium North America Summit, showcasing a series of cutting-edge technologies that captured market attention. Highlights of the summit included the introduction of the A16 process node, the debut of advanced packaging technology SoW, and further innovations in silicon photonics. These technological displays underscore TSMC’s leading position in the era of artificial intelligence and provide strong momentum for the company’s future development.

Social Media:

• ByteDance Statement: ByteDance has issued a statement denying rumors about the sale of its short video app TikTok. The statement clarifies that the company has no plans to sell TikTok and expressed that, even in the face of legal challenges, it is not willing to sell. Given TikTok's crucial position in the social media realm, its future development will directly impact ByteDance's business strategy and value.

Banking Industry:

• Republic First Bank Closed: The Republic First Bank in the United States announced its closure, becoming the country's first bank to do so this year. The Pennsylvania Department of Banking and Securities has ordered the closure of the bank and turned its assets over to the Federal Deposit Insurance Corporation to protect depositor rights.

Investment Market:

• Public Fund Quarterly Report: At the end of the first quarter, the size of public funds saw growth, particularly in bond funds. Among them, short-term bond funds experienced the most significant growth, with some products doubling in size, and the scale of short-term bond funds surged by up to 12,900%.
• US Core PCE Price Index: The US reported a March core PCE price index annual rate of 2.8%, remaining stable for two consecutive months but exceeding market expectations of 2.7%. This has raised concerns about a potential stagflation in the US economy, leading to a severe blow to expectations for the Federal Reserve to cut interest rates.

Real Estate Industry:

• Moody's Downgrades Vanke's Credit Rating: Moody’s has once again downgraded the credit rating of leading real estate company Vanke to Ba3. Vanke responded stating that the company’s operations remain stable, supported by financial institutions, and emphasized the company’s positive measures in operations, financing, and liquidity.