Tag Archives: Asia News

China home prices fell at faster rate in December: real estate survey

People visit a residential sales office in Shandong Province, China, on Dec. 15, 2022. Home prices in 100 cities fell for the sixth month in a row in December, according to a private Chinese survey.

Future Publishing | Future Publishing | Getty Images

China’s home prices fell at a faster pace in December, according to a private survey on Sunday, reflecting persistently weak demand amid rising Covid-19 cases despite a slew of support measures.

China’s property market crisis worsened this summer, with official data showing home prices, sales and investment all falling in recent months, adding pressure on the faltering economy.

Home prices in 100 cities fell for the sixth month in a row in December, declining 0.08% from a month earlier after falling 0.06% in November, according to the survey by China Index Academy, one of the country’s largest independent real estate research firms.

Among the 100 cities, 68 cities posted a fall in monthly prices, compared with 57 in November, the survey showed.

China has in recent weeks ramped up support for the industry in a bid to relieve a long-running liquidity squeeze that has hit developers and delayed completion of many housing projects, further undermining buyers’ confidence. The moves have included lifting a ban on fundraising via equity offerings for listed property firms.

The property sector has also got a slight boost after Beijing abruptly dropped its strict zero-Covid policy in early December, which could lure consumers back to showrooms. But the virus is now spreading largely unchecked and likely infecting millions of people a day, according to some international health experts.

“Real estate policies may continue to maintain an accommodative tone with room for policy easing on the supply and demand side in 2023,” said the real estate research firm, adding “the housing market is expected to stabilize gradually next year.”

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China manufacturing contracts sharply as Covid infections soar

A textile factory on December 30, 2022 in Jiangxi Province. Chinese manufacturing activity contracted at its sharpest pace in nearly 3 years in December.

Vcg | Visual China Group | Getty Images

China’s factory activity shrank for the third straight month in December and at the sharpest pace in nearly three years as Covid infections swept through production lines across the country after Beijing’s abrupt reversal of anti-virus measures.

The official purchasing managers’ index (PMI) fell to 47.0 from 48.0 in November, the National Bureau of Statistics (NBS) said on Saturday. Economists in a Reuters poll had expected the PMI to come in at 48.0. The 50-point mark separates contraction from growth on a monthly basis.

The drop was the biggest since the early days of the pandemic in February 2020.

The data offered the first official snapshot of the manufacturing sector after China removed the world’s strictest Covid restrictions in early December. Cumulative infections likely reached 18.6 million in December, UK-based health data firm Airfinity estimated.

Analysts said surging infections could cause temporary labour shortages and increased supply chain disruptions. Reuters reported on Wednesday that Tesla plans to run a reduced production schedule at its Shanghai plant in January, extending the reduced output it began this month into next year.

Weakening external demand on the back of growing global recession fears amid rising interest rates, inflation and the war in Ukraine may further slow China’s exports, hurting its massive manufacturing sector and hampering an economic recovery.

While (the factory PMI) was lower than expected, it is actually hard for analysts to provide a reasonable forecast given the virus uncertainties over the past month.”

Zhou Hao

chief economist, Guotai Junan International

“Most factories I know are way below where they could be this time of year for orders next year. A lot of factories I’ve talked to are at 50%, some are below 20%,” said Cameron Johnson, a partner at Tidalwave Solutions, a supply chain consulting firm.

“So even though China is opening up, manufacturing is still going to slow down because the rest of the world’s economy is slowing down. Factories will have workers, but they will have no orders.”

NBS said 56.3% of surveyed manufacturers reported that they were greatly affected by the epidemic in December, up 15.5 percentage points from the previous month, although most also said they expected the situation will gradually improve.

Recovery hopes?

“While (the factory PMI) was lower than expected, it is actually hard for analysts to provide a reasonable forecast given the virus uncertainties over the past month,” said Zhou Hao, chief economist at brokerage house Guotai Junan International.

“In general, we believe that the worst for the Chinese economy is behind us, and a strong economic recovery is ahead.”

The country’s banking and insurance regulator pledged this week to step up financial support to small and private businesses in the catering and tourism sectors that were hit hard by the Covid-19 epidemic, stressing a consumption recovery will be a priority.

The non-manufacturing PMI, which looks at services sector activity, fell to 41.6 from 46.7 in November, the NBS data showed, also marking the lowest reading since February 2020.

The official composite PMI, which combines manufacturing and services, declined to 42.6 from 47.1.

“The weeks before Chinese New Year are going to remain challenging for the service sector as people won’t want to go out and spend more than necessary for fear of catching an infection,” said Mark Williams, Chief Asia Economist at Capital Economics.

“But the outlook should brighten around the time that people return from the Chinese New Year holiday – infections will have dropped back and a large share of people will have recently had Covid and feel they have a degree of immunity.”

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India’s Modi tells Russia’s Putin that now ‘is not an era of war’

Narendra Modi leaves his meeting with Vladimir Putin on Friday. India’s prime minister told Putin directly that this is “not an era of war.”

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Indian Prime Minister Narendra Modi on Friday told Russian President Vladimir Putin that now is not a time for war, with food, fertilizer and fuel security among the major concerns of the world at present.

“I know that today’s era is not an era of war, and I have spoken to you on the phone about this,” Modi told Putin on the sidelines of a regional security bloc summit in Uzbekistan, adding that democracy, diplomacy and dialogue keep the world together.

Putin said that he understood Modi’s concerns about the Ukraine war. “I know about your position on the conflict in Ukraine, and I know about your concerns. We want all of this to end as soon as possible.”

Putin, who met Chinese President Xi Jinping at the summit, acknowledged on Wednesday Beijing’s concerns about the war.

Modi and Putin spoke on the sidelines of the Shanghai Cooperation Organisation (SCO) meeting, whose permanent members, besides India, include China, Russia, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

“Our trade is growing, thanks to your additional supplies of Russian fertilizers to the Indian markets, which have grown more than eight fold. I am hopeful that this is going to be of huge help of the agricultural sector of India,” Putin said.

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The U.S. looks to rival Europe and Asia with massive floating offshore wind plan

The Block Island Wind Farm, photographed in 2016, is located in waters off the east coast of the United States.

DON EMMERT | AFP | Getty Images

The White House said Thursday it was targeting 15 gigawatts of floating offshore wind capacity by the year 2035, as it looks to compete with Europe and Asia in the nascent sector.

“The Biden-Harris Administration is launching coordinated actions to develop new floating offshore wind platforms, an emerging clean energy technology that will help the United States lead on offshore wind,” a statement, which was also published by U.S. Department of the Interior, said.

The announcement said the 15 GW goal would provide sufficient clean energy to power more than 5 million homes. It builds on the administration’s aim of hitting 30 GW of offshore wind capacity by 2030, an existing ambition which will mostly be met by fixed-bottom installations.

Alongside the 15 GW ambition, a “Floating Offshore Wind Shot” would “aim to reduce the costs of floating technologies by more than 70% by 2035, to $45 per megawatt-hour,” the statement added.

“Bringing floating offshore wind technology to scale will unlock new opportunities for offshore wind power off the coasts of California and Oregon, in the Gulf of Maine, and beyond,” it said.

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Floating offshore wind turbines are different to fixed-bottom offshore wind turbines, which are rooted to the seabed. One advantage of floating turbines is that they can be installed in far deeper waters compared to fixed-bottom ones.

In a fact sheet outlining its plans, the U.S. Department of Energy said around two thirds of America’s offshore wind potential existed “over bodies of water too deep for ‘fixed-bottom’ wind turbine foundations that are secured to the sea floor.”

“Harnessing power over waters hundreds to thousands of feet deep requires floating offshore wind technology — turbines mounted to a floating foundation or platform that is anchored to the seabed with mooring lines,” it said. “These installations are among the largest rotating machines ever constructed.”

In recent years, a number of large companies have made plays in the floating offshore wind sector.

Back in 2017, Norwegian energy firm Equinor — a major player in oil and gas — opened Hywind Scotland, a five turbine, 30 megawatt facility it calls the “world’s first floating wind farm.”

Last year also saw a number of major developments in the emerging industry.

In Aug. 2021, RWE Renewables and Kansai Electric Power signed an agreement that would see the two businesses “jointly study the feasibility of a large-scale floating offshore wind project” in waters off Japan’s coast.

Norwegian company Statkraft also announced that a long-term purchasing agreement related to a large floating offshore wind farm off the coast of Aberdeen, Scotland, had started. And a few months later, in Dec. 2021, plans for three major offshore wind developments in Australia — two of which are slated to incorporate floating wind tech — were announced.

When it comes to offshore wind more broadly, the U.S. has a long way to go to catch up with Europe.

The country’s first offshore wind facility, the 30 MW Block Island Wind Farm, only started commercial operations in late 2016.

In comparison, Europe installed 17.4 GW of wind power capacity in 2021, according to figures from industry body WindEurope.

Change is coming, however, and in Nov. 2021 ground was broken on a project dubbed the United States’ first commercial scale offshore wind farm.

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How much does it cost to travel full time? Here’s what one couple pays

Ernestas Tyminas felt “stuck” in his role as a marketing manager at a newspaper in Colorado Springs, Colorado.

So he requested two months off to backpack through Asia, he said, landing in Beijing in January 2019.

“On the first day … I meet this one,” he said, gesturing to Darina Karpitskaya, sitting by his side.

The couple, speaking to CNBC via video from Dubai, said they met via the travel app Couchsurfing, which links solo travelers together. Karpitskaya, 31, and a flight attendant at the time, had been grounded in Beijing for two days because of mechanical problems with her return flight.

Though more solo travelers agreed to meet that day, Tyminas and Karpitskaya were the only two who showed up.

After one day together, they planned to meet again in Asia one month later.

A monthlong second date

Karpitskaya returned to Asia, and the couple’s second date was a “crazy one-month adventure” to Singapore, Thailand and the Philippines, said Tyminas, 29.

It was in the Philippines, he said, that he decided he wasn’t going back to his old life.  

“We were … laying on the beach under the stars,” he said. “We were kind of starting to dream about this lifestyle.”

After returning to Colorado, Tyminas quit his job, sold his belongings and moved to Europe, he said.

Karpitskaya wasn’t quite there yet, saying, “At first it sounded like: Oh my God, you’re quitting your job. You’re moving from America. Maybe it’s too soon. But at the same time, when I came back from that trip I felt like I’m living a life that I’m not enjoying.”

A dog in tow

Tyminas flew from Denver to Paris with his dog — an 82-pound Borzoi, once known as the “Russian Wolfhound,” named Cosmo, who is over 6 feet tall on his hind legs.   

“They gave me three rows of seats, and the dog was just laying on the floor,” he said.

From there, the couple traveled often — to places like Italy and Iceland — but not yet full time, they said.

Ernestas Tyminas and Darina Karpitskaya have taken his dog, Cosmo, to 26 of the more than 40 countries that they have visited together, said Tyminas. Cosmo is a great networking tool, added Karpitskaya: “We meet a lot of people walking the dog.”

Source: Dream Team Travels

Then Karpitskaya got what she called her “dream job” — a position with Emirates airline. She moved to Dubai, but the couple continued to meet and travel together.

Then Covid hit, and Karpitskaya accepted four months of unpaid leave from her job.

“We said: We have four months — we can go explore whatever is open,” said Tyminas.

The trio — including Cosmo, who traveled in a huge bed in the back of their SUV — traveled first to Croatia, then slowly across much of Europe, including many former Soviet states, said Karpitskaya.

She never returned to her job, and couple have been traveling ever since, she said.

What it costs to travel the world

In the beginning, they spent between $1,000 and $2,000 a month — all from savings — by staying in cheap accommodations, cooking at home and seeking out free activities, said Tyminas.

As money started to dry up, Tyminas took several online jobs, which netted between $2,000 and $3,000 a month, which wasn’t far from his salary of $3,300 in Colorado, he said.

Tyminas said the couple stayed longer in Romania because “we saw how the people are nice … how they how much they have to offer. Sometimes you Google and you’re like: ‘There’s nothing to do here,’ and then you get there and [realize] that’s only because nobody travels here.”

Source: Dream Team Travels

But the work was cumbersome, and it “felt like I still had a job,” he said.

So the couple decided to open a marketing and graphic design company, despite the fact that “we didn’t know a lot,” said Tyminas.

They reached out to thousands of people, they said, often working late into the night. Potential customers would ask, “Can you design book covers?” “Can you promote music?” Tyminas said his response was always the same, “Of course I can.”

In reality, he was learning on the job, he said, relying on YouTube, Google and online research. But clients were very happy, he said.  

“They paid me half of what they would pay other marketing agencies and the results, they said, were better than they had before,” said Tyminas.

In the first month, the couple made $6,000, he said. Now, sometimes they earn several thousand dollars in a day working with real estate companies and music labels, he added.

“We write blogs for people — we do everything,” said Tyminas. Plus “we don’t have to report to anybody. We’re our own bosses.”

In the past six months, the couple said they spent an average of $4,000 a month. More than half goes to accommodations, which vary by location — from $3,100 per month in Dubai to $1,500 in Lisbon, Portugal, they said. They limit stays in expensive locations, like Switzerland, to no more than a week, they said.

One way to save money is booking monthlong stays on Airbnb, which cuts down average nightly rates and reduces service and cleaning fees, said Tyminas. But even when they bounced from place to place to visit Europe’s Christmas markets last year, they still ended up paying about $2,500 that month, he said.

Karpitskaya said she doesn’t want these costs to scare people because they spent far less in the beginning. At the time, they spent about 80-100% of their income, but now Tyminas said “we spend about 30% and … save the rest.”

The couple told CNBC they still travel modestly — no five-star hotels — and they still cook most meals at home. But they spend more on activities that they film for their YouTube channel Dream Team Travels — another “completely self-taught” venture, they said.

Hiccups on the road

A life of constant travel isn’t all fun and games, they said.

They encounter dirty Airbnbs and hosts who cancel reservations at the last minute. They’ve also had their camera equipment and clothing stolen twice — once in Mexico, and more recently in France — plus an attempted theft of their belongings from their car in Barcelona, while they were sitting in it.

They have also thought about settling down when they find a place they really love, such as the beaches of Portugal or the French Riviera, said Tyminas.   

“But then … we drive somewhere else and we’re like this place is also just as good,” he said.

When Russia invaded Ukraine, quickly occupying the Kherson region where Karpitskaya’s parents live, Tyminas emailed CNBC to say that they’d stopped traveling for the time being.     

Tyminas and Karpitskaya (pictured here in Abu Dhabi) stopped traveling at the outset of the Russian-Ukraine war. Karpitskaya’s family is now out of Ukraine, except her brother, who “has signed up to be in the military to defend his country,” said Tyminas.

Source: Dream Team Travels

“The first few weeks we didn’t even leave our apartment,” he said. “We spent a lot of time arranging transportation for civilians as well as many dogs from shelters to be taken out of dangerous regions for adoption in Europe.”

By the summer, they had resumed traveling, but were still helping to evacuate Karpitskaya’s family.

“Just a week ago we were able to finally get Darina’s parents out of Ukraine,” said Tyminas, adding that they are currently in his family’s home in Lithuania. “We also did a trip to Romania to pick up Darina’s sister and her five-month-old baby from the border and took her to live in Germany.”

The couple are now in Malaysia, they said, and plan to explore Southeast Asia for the next two months.   

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Stanford dropouts’ startup worth millions, could be India tech unicorn

“When we started this 12 months ago, every conversation we had was, ‘You’re totally out of your mind, this is never going to work,'” said teenage CEO Aadit Palicha. 

Yet, Palicha’s company has managed to prove those doubters wrong — it’s now nearing unicorn status and is one of India’s fastest-growing quick commerce apps. A unicorn is a startup valued at more than $1 billion.

Zepto is a startup that promises to deliver groceries in less than 10 minutes. Despite being just one of many businesses to join the instant commerce wave, it has already caught the eyes of investors. 

Its latest cash injection of $200 million in May 2022 valued the business at $900 million, just nine months after its launch. 

We figured that was just a more exciting opportunity than studying in an elite university.

Aadit Palicha

Co-founder and CEO, Zepto

Driving its meteoric growth are Palicha and Kaivalya Vohra, two 19-year-olds who dropped out of Stanford University to pursue their entrepreneurial dreams. 

“At that point, we had already scaled to a couple million dollars of annualized revenue. We said here’s an opportunity to raise a large amount of capital, it’s got clear product market fit,” Palicha told CNBC Make It. 

“How many people in their lifetimes get an opportunity to build a potential generational company? We figured that was just a more exciting opportunity than studying in an elite university.” 

From 45 to 10 minutes 

The idea for Zepto came in July 2021 — when the childhood friends were stuck in their homes in Mumbai, right in the middle of the Covid-19 pandemic and a nationwide lockdown. 

At the time, demand for delivery services surged as many stayed home.

“Online groceries [would] take six, seven days to deliver, offline options were practically shut down or unavailable. It was incredibly difficult for us to get groceries,” said Palicha, who is Zepto’s CEO. 

“We had sort of similar conversations with our neighbors that complained about pretty much the same problem. That’s when we said … why don’t we try building a solution for the folks in our neighborhood?” 

If you look at all the other major categories of e-commerce … you take all of them and combine them, they’re a fraction of the grocery market.

Aadit Palicha

Co-founder and CEO, Zepto

But Palicha and Vohra were no strangers to the instant grocery delivery business. In 2020 — at just 17 years old — they started KiranaKart, which they said delivered groceries in Mumbai in under 45 minutes.

“Some people were getting their deliveries [within] a 10-15 minute timeframe,” Vohra said. 

“In terms of their retention, how much they liked the platform and how frequently they were referring to their friends, [it] was significantly higher for those people who got the deliveries in that timeframe.”

“Which is why we said, ‘Look, maybe there’s some value in exploring that.'” 

Zepto isn’t the only quick commerce startup in India, and competition is heating up both domestically and globally. The country’s online grocery market is set to be worth around $24 billion dollars by 2025, according to Redseer.

Zepto

They weren’t wrong. According to research from consulting firm Redseer, India’s online grocery market could be worth up to $25 billion by 2025 and that is an opportunity that was “too compelling to pass up,” said Palicha.

“If you look at all the other major categories of e-commerce — electronics, apparel, you take all of them and combine them, they’re a fraction of the grocery market,” he added. 

Building trust and reliability 

In order to fulfill grocery orders in under 10 minutes, the duo established a network of dark stores, or microdistribution hubs across cities. 

Dark stores are are closed to the public, housing goods meant solely for online ordering.

“We design our network across the city, to make sure that our points of pickup are very close to population clusters in a specific neighborhood,” Palicha said. 

In order to fulfill grocery orders in under 10 minutes, the duo established a network of dark stores, like the one above, across cities.

Zepto

“What ends up happening is that the average distances of our deliveries are so short, we’re able to get deliveries done consistently in 10 minutes.”

The startup added that the average distance for its deliveries ranges from 1.7 to 2 kilometers. Other forms of hyperlocal delivery, it said, could be “2 to 2.5 times longer than that.” 

Today, Zepto says, it operates hundreds of dark stores across 10 cities in India, with tens of thousands of delivery drivers at work. Palicha added that it is currently delivering “90 to 95%” of its orders between five and 20 minutes. 

But speed is not Zepto’s only secret to retaining customers and building loyalty. The startup, whose name comes from zeptosecond — the smallest unit of time — claimed it is adding 100,000 new users daily. 

“To really retain customers for the long term, what do you really need to build is trust and reliability. Reliability comes in many ways,” said Vohra, who is also the chief technology officer. 

“Yes, we deliver on time, but also reliability in terms of — if I ordered 10 things, I get those 10 exact things. And if I order fruits and vegetables, [they’re] the highest quality possible.” 

Keeping cash burn low

Investors are excited about Zepto’s popularity too.

To date, the company had attracted $360 million dollars from investors, including Y Combinator, U.S. health-care consortium Kaiser Permanente and Nexus Venture Partners. Its latest funding round puts the company on course for a likely $1 billion valuation. 

Palicha said one the key drivers of Zepto’s investment success is its “operating discipline.” 

“When we went to investors this time around, we showed very, very clear paths to profitability. We went from $0 in revenue roughly a year ago to today, we’re doing hundreds of millions of dollars in annualized revenue,” he added. 

“We’re still talking in terms of multiples and not percentages when it comes to our growth rate, and that’s something that we’re excited by.”

Since day one, we’ve been … forcing ourselves to be efficient to make every dollar last. 

Aadit Palicha

Co-founder and CEO, Zepto

Zepto claims it has managed to reduce its cash burn rate by 5 times on a per-order basis, while achieving a quarter-on-quarter revenue growth of 800%. 

Even so, the days of easy money for cash-burning tech companies are gone, as interest rates rise and investors demand more results. Nonetheless, the young founders remain unfazed. 

“We’re in a position where you look at the size of our balance sheet, we effectively got capital to last us multiple years, in the context of this downturn,” said Palicha. 

“Since day one, we’ve been … forcing ourselves to be efficient to make every dollar last. We’re able to do more orders with the same amount of cash, we’re able to acquire more customers with the same amount of cash.” 

Zepto’s founders may be young, but their conviction in their product is unwavering. “Whether it was in front of an investor, a senior executive, any government stakeholder and regulator, you realize what you’re building is on the right side of what customers want,” said Aadit Palicha (right).

Zepto

Keeping costs lower than its competitors in the high-growth tech category has given them an edge, said the duo. 

“That just puts us in a position where we are able to continue growing sustainably, where other folks have been forced to … induce layoffs, essentially pull back growth plans and contract to survive in a market like this,” Palicha added. 

Touching ‘the billion mark’?

Because of that difficult environment, Palicha and Vohra aren’t resting on their laurels despite the fresh funding that Zepto has in the bag.

“The key focus now is to just build the incremental scale we need to break even in key markets. Once we have a balance sheet that is now operating in breakeven, we can start expanding into new cities with a lot more confidence and clarity,” said Palicha. 

It was previously reported that Zepto is making $200 million to $400 million dollars in annualized revenue and the founders are now hoping to “touch the billion mark.” 

Palicha added: “[Zepto] came out as a personal project between Kaivalya and [me] to see if we could solve a problem at a small scale in our neighborhood.”

“It eventually evolved into the company that we are today, which we’re incredibly grateful for.” 

Don’t miss: Here’s how you can recession-proof your career, according to one CEO

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Indexes trade higher as investors react to Fed minutes

SINGAPORE — Asia-Pacific markets were mostly higher on Thursday as investors watch for market reaction to the latest Fed minutes.

In South Korea, the Kospi advanced 1.83% after closing more than 2% lower on Wednesday, and the Kosdaq climbed around 1.43%.

Samsung Electronics shares rose 3.19% after the company released earnings guidance for the second quarter of 2022. Operating profit likely rose to 14.1 trillion won ($10.8 billion) in the April to June quarter, up from 12.57 trillion won a year ago.

Japan’s Nikkei 225 gained 1.44%, and the Topix index rose 1.39%.

The S&P/ASX 200 was up 0.45%. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.88% higher.

Mainland China markets were higher. The Shanghai Composite rose 0.51%, and the Shenzhen Component climbed around 1%. Both indexes fell on Wednesday as Covid concerns came back into focus.

Beijing city said Covid vaccinations would be required to enter sports centers, entertainment venues and more starting next week.

Hong Kong’s Hang Seng index was one of the few losers in the region, slipping 0.41%.

It’s really just clear they’re on this rate hiking path purely until inflation cools off.

Anthony Raza

Head of multi-asset strategy, UOB Asset Management

Federal Reserve officials recognized that a “more restrictive stance” in policy could be suitable if inflation doesn’t ease, even if it slows the economy, the meeting minutes said.

“Participants recognized that policy firming could slow the pace of economic growth for a time, but they saw the return of inflation to 2 percent as critical to achieving maximum employment on a sustained basis,” the document said.

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Fed officials also said a hike of 50 or 75 basis points would be likely at the July meeting.

The Federal Open Market Committee is concerned about inflation expectations becoming unanchored, a ANZ research note said on Thursday.

“The Fed is understandably eager to reinforce to the public that it has got this, and hiking 75bp [and signaling many more hikes to come] certainly reinforces the message,” the note said.

Anthony Raza of UOB Asset Management told CNBC’s “Squawk Box Asia” on Thursday that the Fed’s “hands are tied at this point.”

“It’s really just clear they’re on this rate hiking path purely until inflation cools off,” said Raza, who is head of multi-asset strategy. “I think that’s going to be a slow process,” he added, estimating that it will take around a year.

U.S. markets gained slightly on Wednesday stateside.

The Dow Jones Industrial Average rose 69.86 points, or 0.23%, to 31,037.68. The S&P 500 advanced 0.36% to 3,845.08, and the Nasdaq Composite traded 0.35% higher to close at 11,361.85.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 106.870.

The Japanese yen traded at 135.73 per dollar, and the Australian dollar was at $0.6817.

Oil futures recovered earlier losses to rise in Asia trade after tumbling on Tuesday and Wednesday.

U.S. West Texas Intermediate futures gained 0.52% to $99.04 per barrel, and Brent crude futures climbed 0.54% to $101.23 per barrel.

The U.S. crude benchmark settled 1% lower on Wednesday after an 8% tumble on Tuesday. The international benchmark settled 2% down at $100.69 after falling below the $100 level during Wednesday’s session.

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Asia-Pacific markets are mixed as investors search for direction

SINGAPORE — Australian stocks rose more than 1% while Hong Kong and South Korean markets were lower on Monday ahead of Australia and Malaysia central bank decisions this week.

The S&P/ASX 200 advanced 1.26%, with banking and retail stocks in the green.

Japan and mainland China markets were also higher.

The Nikkei 225 in Japan pared earlier gains to trade 0.54% higher, while the Topix index climbed around 1%.

In China, the Shanghai Composite gained 0.14% and the Shenzhen Component rose 0.9%.

We probably will be bumping along the bottom, maybe a bit more downside from here.

Dan Fineman

Co-head of Asia-Pacific equity strategy, Credit Suisse

Hong Kong and South Korea stocks were down.

The Hang Seng index was closed on Friday and slipped as much as 1.8% in early trade on Monday. It was last down 0.59%.

Exchange-traded funds will be included in the stock connect scheme that links Hong Kong and mainland China from Monday.

South Korea’s Kospi initially struggled for direction and was last down 0.91%, while the Kosdaq shed 1.92%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.13% lower.

In Southeast Asia, Indonesia’s Jakarta Composite dropped 2.54%.

Dan Fineman, co-head of Asia-Pacific equity strategy at Credit Suisse, said markets appear to have adequately priced in the amount of Fed hikes that are to come, but that the “very high risk of recession” means markets are unlikely to rally.

“I think that the worst is behind us. We probably will be bumping along the bottom, maybe a bit more downside from here, but I think the difficulties of the first half will not be repeated on the same scale in the second half,” he told CNBC’s “Street Signs Asia” on Monday.

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Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 105.143.

“The possibility of 75bp hikes at its June and July meetings is keeping the USD strong in the near term, but we maintain our core view that dollar strength will wane later in the year,” Richard Yetsenga, chief economist at ANZ, wrote in a Monday note.

The Japanese yen traded at 135.14 per dollar, strengthening from levels as weak as 137 per dollar last week. The Australian dollar was at $0.6806 after recovering from below $0.679 recently.

Oil futures fell in Asia’s afternoon trade. U.S. crude futures shed 0.22% to $108.19 per barrel, while Brent crude futures slipped 0.21% to $111.39.

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Recession, currencies, oil, Russian debt

SINGAPORE — Shares in the Asia-Pacific traded higher on Monday as investors assess inflation and recession fears.

Hong Kong’s Hang Seng index was up 2.13%, with the Hang Seng Tech index up 3.46%. Alibaba’s shares in the Chinese city rose 4.13% while Meituan was up 4.09%.

Mainland Chinese markets also gained. The Shanghai Composite climbed 0.56%, and the Shenzhen Component rose 0.766%.

Japan’s Nikkei 225 hovered around 1%, while the Topix rose 0.78%. In Australia, the S&P/ASX 200 advanced 1.69%.

The Kospi in South Korea gained 1.73%, and the Kosdaq was 2.78% higher.

MSCI’s broadest index of Asia-Pacific shares rose 1.51%.

Russia defaulted on foreign-currency sovereign debt for the first time in more than 100 years, Bloomberg reported. The country’s central bank foreign reserves remain frozen.

In company news, Trip.com is set to report its first-quarter financial results on Monday in the U.S. after the market close.

Later this week, China and Japan will be reporting Purchasing Managers’ Index data, while Hong Kong will commemorate the 25th anniversary of its handover. China’s President Xi Jinping is expected to visit Hong Kong for the occasion, state media Xinhua reported over the weekend.

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On Friday in the U.S., stocks rallied to snap previous losing streaks.

“It just highlights the fact that markets are going to be very volatile until we do pass that peak in inflation and the outlook for central banks being as hawkish as they are,” said Kerry Craig, global market strategist at JPMorgan Asset Management.

He said markets tend to be choppy as many central banks in developed economies enter a new cycle for rate hikes.

“It’s when you have clarity on that path forward, then you start to refocus on the fundamentals,” he told CNBC’s “Squawk Box Asia” on Monday.

Futures fell slightly on Sunday night following last week’s comeback.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.010.

The Japanese yen traded at 134.61 per dollar, strengthening from levels above 136 against the greenback last week. The Australian dollar was at $0.6920.

Oil futures fell in Asia in early trade on Monday. U.S. crude dropped 0.33% to $107.27 per barrel, while international benchmark Brent crude slid 0.11% to $113 per barrel.

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Wall Street, Bank of Japan, currencies, oil

The rebound in U.S. equities overnight … will be taken with a pinch of salt as elevated inflation and risks to growth persist.

Lavanya Venkateswaran

economist, Mizuho Bank

The S&P/ASX 200 in Australia declined 0.18%. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 1.34%.

Major indexes in the U.S. jumped on Tuesday after weeks of declines. The Dow Jones Industrial Average gained 641.47 points or 2.15% to 30,530.25, while the S&P 500 rose 2.45% to 3,764.79. The tech-focused Nasdaq advanced 2.51% to 11,069.302.

“The rebound in U.S. equities overnight … will be taken with a pinch of salt as elevated inflation and risks to growth persist,” Lavanya Venkateswaran, an economist at Mizuho Bank, said in a note.

“If you are a global investor and you’re seeking a diversification of risk in your portfolio, what’s very interesting is that the dependency of, let’s say the Chinese equity market, on what’s happening in the U.S. is becoming less and less,” said Jim McCafferty, joint-head of APAC equity research at Nomura.

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Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, last traded at 104.590.

The Australian dollar was at $0.6926, after falling from levels above $0.702 late last week.

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