Alibaba Group is on a mission to raise approximately HK$12 billion (equivalent to $1.53 billion) through the issuance of exchangeable bonds. This strategic move aims to enhance its global cloud infrastructure and strengthen its commerce operations, as stated in an official exchange filing by the Chinese tech giant. Notably, these bonds will not accrue interest over time, and investors will have the option to exchange them for shares in Alibaba Health, a subsidiary in which Alibaba Group holds about 64% equity interest.
This latest fundraising initiative follows Alibaba's successful capital raise of $5 billion through a dual-currency bond in November. In conjunction with this announcement, Alibaba Cloud has unveiled plans for new data centers in the Philippines and Malaysia. Additionally, the commerce segment of Alibaba has initiated a significant subsidy program amounting to 50 billion yuan (approximately $6.4 billion) over the next year. — Dylan Butts
In other news, the Vietnamese dong has continued to experience depreciation against the U.S. dollar, with a decline of 0.1% to 26,200 as of 10:51 a.m. local time on Friday. This follows a record low hit earlier in the trading session, as reported by data from LSEG. Concurrently, the Vietnamese stock market has faced declines for the second consecutive day, despite showing some resilience in early trading after the announcement of a trade deal with the U.S. The benchmark Vietnam Index remained largely flat, while the worst-performing stocks included Siam Brothers Vietnam, which plummeted 6.79%, Cat Loi with a drop of 4.53%, and ICAPITAL Investment, which fell 3.32%. — Amala Balakrishner
Meanwhile, the Securities Exchange Board of India (SEBI) has taken significant action by barring Jane Street Group from accessing India's securities market, as outlined in a recent order published on the regulator's website. The order prohibits the U.S.-based trading firm's entities from any activities involving the buying, selling, or dealing in securities, either directly or indirectly. Furthermore, SEBI has issued an interim order to impound over 48.4 billion Indian rupees (around $566.3 million) from Jane Street, citing alleged illegal gains. Read the full story here. — Amala Balakrishner
In Japan, the latest government data reveals that the average household spending has exceeded expectations, showcasing a remarkable 4.7% year-on-year increase in real terms. This figure marks the highest growth rate since August 2022 and surpasses the median forecast of 1.2% from economists surveyed by Reuters. In monetary terms, household spending reached 316,085 yen (approximately $2,183.49) in May, while the average monthly household income rose by 0.4% year-on-year in real terms, amounting to 522,318 yen. These spending trends are closely monitored by the Bank of Japan when considering potential interest rate adjustments. — Amala Balakrishner
Good morning from Singapore. The Asia-Pacific markets are poised for a mostly positive opening on Friday, following a mixed trading session the day before. Japan's benchmark Nikkei 225 is anticipated to open higher, with futures contracts in Chicago indicating a level of 40,100, while Osaka futures last traded at 40,120, against the index's previous close of 39,785.90. In contrast, futures for Hong Kong's Hang Seng index suggest a weaker opening at 23,991, compared to the last close of 24,069.94. Meanwhile, Australia's S&P/ASX 200 is also expected to open on a positive note, with futures tied to the benchmark at 8,611, up from the last close of 8,595.80. — Amala Balakrishner
