Five Things You Need to Know to Start Your Day: Asia

Good morning. TSMC’s looming trillion-dollar milestone. China’s potential new policy toolkit. AI’s impact on banking. Here’s what’s moving markets. — Kristine Aquino

Asian equity futures signal a breather for stocks in the region a day after the MSCI Asia Pacific Index hit a three-week high and following a holiday in the US. Among the companies that will likely be in focus is Taiwan Semiconductor Manufacturing Co., whose market capitalization is nearing $1 trillion. Goldman Sachs, Citigroup and Morgan Stanley are among Wall Street banks that lifted price targets for TSMC this week, citing surging AI-related demand and potential price hikes in 2025 to drive up earnings. JPMorgan says TSMC may “lift its 2024 revenue guidance and potentially move up its capex to the higher end of the guidance range,” and it expects AI to contribute 35% of total sales by 2028.