(Bloomberg) -- It’s been an unusually exciting weekend for traders as Chinese President Xi Jinping unveiled the country’s new set of decision makers over the next five years on Sunday and told journalists that the nation’s economy is “resilient” with ample potentials. He also stressed that the country will keep deepening reform and opening up of its economy as China and the world need each other. 

Meanwhile, South Korea policy makers held an emergency meeting on the same day and pledged at least 50 trillion won ($34.7 billion) in support for credit markets to reduce default risks. In UK, Boris Johnson pulled out of the contest to lead the ruling Conservative Party, leaving Rishi Sunak, the former chancellor of the exchequer, on the brink of becoming the next prime minister.

Investors may also want to keep a close eye on several of Asia’s key earnings reports this week, as the market looks to assess the impact of a strong dollar amid increasing expectation that the Federal Reserve will continue to tighten monetary policy.

HSBC Holdings is set to report Tuesday and it is worth watching out for whether a weaker pound has affected its group profit. Analysts are also keen to hear comments from Samsung Electronics, SK Hynix and Canon on the Korean won and the yen to see whether benefits brought by currency depreciation are enough to offset the impact of sluggish demand and lower product prices.

On the ESG front, Longi Green, the world’s biggest solar panel maker, and Chinese electric carmaker BYD are scheduled to release results on Friday. The spotlight will be on any mention of benefits associated with the Chinese government’s push for a low-carbon economy, as well as cost reduction measures and market demand outlook.

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  • Follow results, analysis and market reaction to reports by HSBC and Samsung in real-time on the TOPLive blogs this week.

Highlights to look for this week:

Monday: No major earnings expected.

Tuesday: HSBC (5 HK) is due to announce results around noon. The bank’s profit is likely to suffer from sterling weakness as its cost-to-income ratio is below 100% in the UK, according to Bloomberg Intelligence. Consensus estimate shows a 1.6% sequential growth in its third-quarter adjusted pretax profit amid increasing uncertainty in the global economy. Cost outlook and credit-loss charges are also in focus. Further cost savings beyond the $5.5 billion currently targeted could be required, analysts including Jonathan Tyce wrote. Helped by rising interest rates and a prime rate hike in Hong Kong, its mortgage rates may become a key driver of earnings growth. HSBC is now shifting its focus to Asia while culling some operations that are no longer deemed relevant. Investors are also closely monitoring any further comments from the bank on a push by some shareholders including Ping An Insurance Group to spin off its Asian operations. Any new net-zero commitments would be of interest as well, especially after a UK watchdog recently reprimanded HSBC for violating environmental advertising rules in a poster campaign.

Wednesday: SK Hynix (000660 KS) is set to release third-quarter results before market open. The world’s second-largest memory chipmaker may report a 39% decline in operating profit for the three months ended September, while sales are expected to gain 4.8% from a year earlier, according to consensus estimate in a Bloomberg survey. The market is watching for comments on possible output cuts, its forecast for 2023, the timing of a chip price rebound and impact from the US’s export curbs on China. A bigger-than-expected decline in average selling prices of DRAM and NAND offset the benefit from weaker won, according to EBEST Investment & Securities. The brokerage also estimated that SK Hynix may post 247 billion won in operating loss next year after a 9 trillion won profit this year.

  • FX Factor: Canon (7751 JP) is set to announce third-quarter results after market close. The Japanese imaging solutions company is expected to report a 59% surge in operating profit, according to consensus estimate in a Bloomberg survey. Bloomberg Intelligence said cameras and printers will be key sales growth drivers this year as the trend for office reopenings and live-video streaming accelerates, while medical and chipmaking equipment may be muted coming off a strong base in 2021. With the yen having weakened past 149 to the dollar, investors will also be curious to learn whether the company will revise its assumed rate of 133 yen and boost its full-year forecast accordingly.

Thursday: Samsung Electronics (005930 KS) is due to provide net income and details of divisional performance with its full quarterly earnings report in the morning. When announcing third quarter earnings guidance earlier this month, South Korea’s largest company said operating profit fell by 32% to 10.8 trillion won for the three months ended September, missing analysts’ estimate of 12.1 trillion won. Sales also missed estimates, coming in at 76 trillion won. Its third-quarter operating profit disappointment could lead to a decrease in fourth-quarter profit expectations by 5%-10% on weak memory chip demand and won depreciation might not be enough to offset that, according to Bloomberg Intelligence. During its conference call scheduled at 10 a.m. local time, investors will likely focus on the company’s comments on M&A, shareholders return plan and any possible production cut.

Friday: BYD (1211 HK) plans to release third-quarter results after market close. The Warren Buffett-backed company expected as much as a 365% jump in third-quarter profit to 5.9 billion yuan ($815 million). The ability to make batteries and semiconductors on its own helped BYD avoid disruptions that have hurt rivals including Tesla. Robust order backlog suggests its new models are driving demand despite higher vehicle prices, Bloomberg Intelligence wrote. The Shenzhen-based group and other Chinese EV makers such as Xpeng and Nio are benefiting from their ability to pass on surging raw material costs and from higher demand, which could extend into 2023 with zero purchase tax for EVs, BI added. 

  • ESG in focus: Longi Green Energy Technology (601012 CH) is due to report earnings after market close in Shanghai. The solar panel maker on Oct. 13 reported an up to 48% year-on-year increase in preliminary net income for the first nine months ended September. It cited rising sales of silicon wafers and modules, and significant increases of investment returns and foreign exchange income as contributors to the profit gain. Citi analyst Pierre Lau wrote in a note that the company’s earnings should rise quarter-on-quarter in the October-December period on the back of growth in solar installations globally. The bullish dollar will also help due to Longi Green’s strong export focus, he added.

--With assistance from Charlotte Yang.

(Updates top graphs with details on China Party congress and South Korea credit support.)

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