- Three-nation Asia-Pacific tour: PM Modi’s cultural, culinary diplomacy on display Times of India
- How China is driving Indian and US engagement in the Pacific Islands | DW News DW News
- Secretary Antony J. Blinken and Papua New Guinean Prime Minister James Marape at a Joint Press Availability – United States Department of State Department of State
- Indian Diaspora Greets PM Modi As He Lands In Sydney | Quad Summit 2023 | Modi In Sydney 2023 CNN-News18
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Tag Archives: AsiaPacific
Asia-Pacific stocks rise as Tokyo’s inflation nears 42-year high
Adani shares plunge further for second straight day of losses
Shares of Adani Group companies continued to see sharp losses for a second consecutive trading session in India after short seller firm Hindenburg announced its short position in the conglomerate’s firms earlier this week.
Adani refuted the claims in two separate statements, adding that the group is “evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hidenburg Research,” Adani Group’s head of legal Jatin Jalundhwala said in a statement.
Mumbai-listed shares of Adani Enterprises fell more than 5% in India’s trading session on Friday. Adani Transmission fell 16.8%, Adani Green Energy shed 14.9% and Adani Power lost 8.4%. Adani Port’s share price also dropped 8.4%.
Hindenberg doubled down on its initial stance, emphasizing that Adani has not answered any of the questions raised in their claims.
“We fully stand by our report and believe any legal action taken against us would be meritless,” it said,” it said.
— Jihye Lee
Tokyo’s inflation stays above Bank of Japan’s target
Consumer prices in Japan’s capital Tokyo rose by 4.3% in January, higher than expected by economists polled by Reuters.
The reading also maintained levels higher than the Bank of Japan’s target of 2% inflation for an eighth consecutive month after rising 2.1% in June 2022.
The Japanese yen strengthened 0.3% after the data release and last traded at 129.82 against the US dollar.
CNBC Pro: These 6 global ETFs are the only ones to have posted gains every year for the past five years
Only six global stock ETFs have consistently posted yearly gains over the past five years, according to new analysis by CNBC Pro.
They are the only funds among 7,000 equities ETFs trading worldwide to:
- Not have a single year of negative returns between Jan. 1, 2018, and Dec. 31, 2022;
- And be in positive territory this year so far.
CNBC Pro subscribers can find out which ETFs they are here.
— Ganesh Rao
Singapore home prices rose less in final quarter of 2022
Private residential property prices in Singapore rose by 0.4% in the final quarter of 2022, a release by the Urban Redevelopment Authority showed.
The reading showed home prices rose less than the previous period’s increase of 3.8% and the slowest growth since the second quarter of 2020.
Home prices rose 8.6% in the full year of 2022, the release said, also less than then 10.6% increase seen in the full year of 2021.
— Jihye Lee
Australia producer price index rises 5.8% from year ago
The producer price index in Australia rose 5.8% for the final quarter of 2022 on an annualized basis, data from the Australian Bureau of Statistics showed.
The reading was slightly lower than the previous quarter’s print of 6.4%, a signal inflation may be easing in the nation.
On a quarterly basis, the index rose 0.7%, also slower than the previous period’s reading of 1.9%.
The Australian dollar strengthened slightly during Asia’s morning session and last traded at 0.7123 against the U.S. dollar.
— Jihye Lee
GDP, other fourth-quarter data shows economic challenges are ‘beginning to clear,’ economist says
Thursday’s GDP data adds to a broadening picture of economic growth in the fourth quarter, according to Curt Long, chief economist at the National Association of Federally-Insured Credit Unions. And that signals to him the economic outlook is improving.
“The big picture view of economic growth in the fourth quarter is a positive one. Much of that growth was concentrated in inventory build, which is unlikely to grow at a similar pace in 2023,” Long said. “Nevertheless, with resilient consumer spending, low unemployment claims, and receding inflation, some of the clouds that were forming over the economy several months ago are beginning to clear.”
— Alex Harring
CNBC Pro: Buy the dip? Top Morningstar strategist names 3 stocks trading at a steep discount
U.S. stocks are around 15% undervalued, according to Dave Sekera, chief U.S. market strategist for Morningstar, who says the extent of this undervalued territory is rare.
Since the end of 2010, the market has traded at or below the current discount only 5% of the time, he said.
He picks three stocks that he says are trading at steep discounts.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Tesla’s strong orders and weak margins have Wall Street analysts conflicted
Wall Street analysts are divided on Tesla after the electric car company’s latest quarterly results.
Tesla reported a beat on both earnings and revenue for the fourth quarter, and assuaged investor fears of weaker growth at the company after recently issuing a round of price cuts. While the move triggered a drop in used Tesla prices, they also supported demand for the vehicles.
“Thus far in January we’ve seen the strongest orders year to date than ever in our history. We’re currently seeing orders of almost twice the rate of production,” Musk said during a call with analysts.
For Goldman Sachs’ Mark Delaney, that was the “most important takeaway from the call.”
“Importantly, Tesla commented that since it lowered prices it has seen the strongest orders year-to-date in its history, with orders running about 2X production. While we believe this rate of orders may not be sustained in light of the weak macroeconomic environment, it would suggest the company is tracking well to our 1.8 mn delivery estimate,” Delaney wrote.
Other analysts were more negative on the stock outlook, however, saying that Tesla’s automotive gross margins, which was the lowest figure in the last five quarters, spelled trouble ahead.
AllianceBernstein’s Toni Sacconaghi reiterated an underperform rating on Tesla, saying the automaker’s latest results and earnings call had “something for bulls and bears,” adding he remains “torn” on the company. While the strong orders are promising, the analyst said the auto gross margins were too weak to overlook.
“Despite raising our energy storage forecast materially, our FY EPS declines from $3.80 to $3.54 amid lower margins. Moreover, while no one (including Tesla) knows what demand elasticity is, we believe it is uncertain whether surging demand will be sustained, particularly in China, where we believe more price cuts will likely be needed before year end,” Sacconaghi wrote.
CNBC Pro subscribers can read the full story here.
— Sarah Min
CNBC Pro: Morgan Stanley has a ‘simple’ tech playbook, names TSMC and others as stocks to buy right now
A recession may be coming, and the semiconductor sector — widely seen as cyclical and volatile — could be an unlikely safe refuge for investors.
Morgan Stanley says chip stocks have historically done well in past recessions. The bank named its top Asia chip stocks — giving one 40% upside.
Pro subscribers can read more here.
— Zavier Ong
U.S. GDP rose slightly more than expected in the fourth quarter
The U.S. economy expanded at an annualized pace of 2.9% in the fourth quarter, slightly outperforming a Dow Jones estimate of 2.8%. The Commerce Department’s report comes even as inflation persists and the Federal Reserve continues to raise rates.
Consumer spending rose 2.1% for the period, down slightly from 2.3% in the previous period but still positive.
— Jeff Cox
Bitcoin heading toward best month since 2020
Bitcoin’s remains in rally mode despite pulling back the past two days and the cryptocurrency is on pace for its best month since 2020. Some investors see crypto prices as a leading indicator of investors’ risk appetite.
So far this month and year, bitcoin has risen almost 40% and is poised to post its best monthly performance since December 2020, when it gained 49.47% for the month.
Meanwhile, the S&P 500 has risen about 5% this month.
— Tanaya Macheel
Asia-Pacific shares struggle for direction ahead of BoJ rate decision
Japan’s core manufacturing orders for November slump more than expected
Japan’s private-sector manufacturing orders for November fell 8.3% compared to the previous month, according to official data.
The drop was significantly larger than Reuters’ expectations of a 0.9% decline. On an annualized basis, manufacturing orders fell 3.7%.
The private-sector machinery figures exclude orders from volatile ones for ships and electric power companies.
—Lee Ying Shan
CNBC Pro: Thinking of jumping back into Big Tech? This investor is wary of 2 stocks in particular
CNBC Pro: Morgan Stanley says cheaper EVs are coming — and names the global stocks set to benefit
As electric cars become increasingly popular, a new manufacturing technique that could make them more affordable is garnering interest, according to Morgan Stanley.
Some automakers are outsourcing the process which could benefit three leading Asian parts suppliers, said the Wall Street bank.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Stocks end the day mixed, Dow falls almost 400 points
The Dow Jones Industrial Average Index fell to end the day, as Goldman Sachs shares weighed on the stock index.
The Dow lost 391.76 points, or 1.14%, to close at 33,910.85. The S&P 500 fell 0.2% to 3,990.97. The Nasdaq Composite gained 0.14% to end the day at 11,095.11.
— Tanaya Macheel
Bank of America sees a later start to the recession
A recession probably won’t start now until later in 2023 as consumer spending has been stronger than expected and the Federal Reserve eases up on the intensify of its interest rate hikes, according to Bank of America.
“We push back the timing of our outlook for a mild recession in the US economy by about one quarter given durability in consumer spending on account of strong labor markets, excess saving, declining energy prices, and easier financial conditions,” the firm said in a client note. “That said, we think the headwinds will lead consumers to reduce spending and push the saving rate higher as the year progresses.”
That puts the recession into the second quarter, driven by a an investment-led slowdown leaking to consumer spending.
After pushing its benchmark borrowing rate up by 4.25 percentage points in 2022, the Fed is expected to ease back, with a 0.25 percentage point increase in February. That is forecast to be followed by additional quarter-point increases in March and May.
Rate cuts likely won’t come until 2024, the firm said.
—Jeff Cox
Goldman Sachs shares fall on earnings miss
Goldman Sachs shares declined 2.4% after the Wall Street investment bank shared fourth-quarter earnings results that missed analysts’ expectations on both the top and bottom lines.
The bank reported earnings of $3.32 per share on $10.59 billion in revenues. Consensus estimates called for earnings of $5.48 a share on revenues of $10.83 billion, according to analysts surveyed by Refinitiv.
Provisions for credit losses also came in slightly above expectations.
— Hugh Son, Samantha Subin
Asia-Pacific markets mostly fall as investors digest Chinese economic data
Goldman Sachs: China’s ‘exit wave’ on reopening is taking a toll on economy
China’s “exit wave” during its reopening process has dragged down the economy significantly, Goldman Sachs economists said in a report.
“The ongoing ‘exit wave’ on the back of China’s faster-than-expected reopening has taken a heavy toll on economic activity in recent months, due to surging infections, a temporary labor shortage and supply chain disruptions,” it said in a report.
“It is very surprising in our view that the reported numbers for December were not worse,” the economists said.
– Jihye Lee
Credit Suisse says iron ore prices to peak at around $130 to $140 this year
Iron ore prices are forecast to be around $130 to $140 as traders keep China’s reopening in focus, said Credit Suisse’s Head of Energy and Resources Research, Saul Kavonic.
“We are expecting that $130 to $140 mark to be where prices kind of end up and top out this year,” he said.
While the last few weeks of iron ore demand strength is buoyed by speculative buying and holiday period purchases, he said the markets are currently watching how China’s reopening plays out and the rolling out of any infrastructure stimulus.
He said these measures will “sustain that demand for iron ore throughout the course of this year well into next year.”
Australia’s mining giant Rio Tinto posted their fourth quarter production results which slightly beat estimates.
“The real focus [of] Rio has been on iron ore, which is supportive the whole sector over the last few months which has been a call that’s finally come good at the end of last year and early this year,” he said.
Rio Tinto‘s shares last traded down 1.11%.
—Lee Ying Shan
China’s retail sales beat estimates, economy expands more than expected
China’s December retail sales beat estimates, falling only 1.8% on an annualized basis, significantly better than the decline of 8.6% projected in a Reuters poll.
Industrial output also grew 1.3% in December, higher than expectations for an increase of 0.2%.
In the fourth quarter, China’s economy expanded by 2.9% on an annualized basis, better than the expected 1.8% growth. While quarterly growth was flat, it still beat expectations for a 0.8% contraction.
Despite better-than-expected data, the Chinese offshore yuan weakened sharply from 6.7403 to 6.7563 against the U.S. dollar shortly after the release.
Alibaba stock inches up after Ryan Cohen reportedly takes stake in company
Shares of Alibaba rose after the Wall Street Journal reported that Ryan Cohen built a stake in the company “worth hundreds of millions of dollars.”
Cohen, who founded online pet retailer Chewy and is also chairman of GameStop, is privately pushing Alibaba to accelerate and further boost its share-repurchase program, the Journal report said.
Hong Kong-listed shares of Alibaba rose 2% in the first hour of trade. The stock has since pared its gains to trade roughly flat.
– Jihye Lee
China’s Liu He to meet with U.S. Treasury Secretary Janet Yellen
U.S. Treasury Secretary Janet Yellen is scheduled to hold a meeting with Chinese Vice Premier Liu He on the sidelines of the World Economic Forum, China’s commerce ministry said in a statement.
The two will hold a meeting to “strengthen macroeconomic and financial policy coordination,” the ministry said.
The meeting will take place in Zurich on Jan. 18, according to the statement, adding that the two will discuss the implementation of the agreements reached between U.S. President Joe Biden and Chinese President Xi Jinping late last year in Bali, Indonesia.
The sit-down will mark the first face-to-face meeting between Yellen and Liu.
Separately, Politico reported U.S. Secretary of State Antony Blinken will meet newly appointed Chinese foreign minister Qin Gang in Beijing on Feb. 5-6, citing Washington-based diplomats familiar with the matter.
– Jihye Lee
Singapore’s non-oil domestic exports fall by more than 20% in December
Singapore’s non-oil domestic exports fell 20.6% in December on an annualized basis, a further drop from a decline of 14.7% seen in November.
The steep decline was driven mainly by exports to China, Indonesia and Hong Kong, according to the government release. Exports to South Korea and Japan rose, it said.
The nation’s total trade declined 7.7% in the month of December compared with a year ago – with exports dropping 7.1% and imports also dropping 8.2%.
– Jihye Lee
CNBC Pro: This under-the-radar global carbon capture stock could soar by 65%, investment banks say
Shares of an under-the-radar carbon capture company are expected to rise by 65% due to increasing global demand for emissions reduction technology, according to investment banks analyzing the stock.
The company’s latest innovation, revealed last week, could cut the energy needed to capture carbon and improve the company’s profitability in the future, according to analysts at a German investment bank.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Where the major indexes stand coming off the first two weeks of 2023 trading
With the first two weeks of 2023 trading done, the three major indexes are up so far for the year.
The Nasdaq Composite is leading the way, adding 5.9% as investors bought beaten-down technology stocks on rising hopes of an improving landscape for growth holdings. The S&P 500 and Dow followed, gaining 4.2% and 3.5%, respectively.
— Alex Harring
Stock futures open lower
Stock futures were lower despite the market coming off a winning week.
Futures tied to the Dow dipped 0.1%. S&P 500 and Nasdaq-100 futures fell 0.2% and 0.4%, respectively.
— Alex Harring
Asia-Pacific shares mostly higher following cooler inflation print
China’s December exports fell less than expected
China’s exports and imports tumbled less than expected for the month of December, according to the customs administration.
China’s exports fell 9.9% in December from a year ago, in U.S.-dollar terms, slightly better than the 10% drop forecast by a Reuters’ poll.
Imports fell by 7.5% in December compared with a year ago in U.S.-dollar terms, also performing better than the 9.8% slump predicted by Reuters.
The milder slump meant trade still grew for 2022.
—Evelyn Cheng, Lee Ying Shan
Bank of Korea raises rates, says 2022’s fourth-quarter GDP likely to be negative
The Bank of Korea raised interest rates by 25 basis points to 3.5%, marking the highest since December 2008. The move was in line with Reuters’ expectations.
“The Board judges that the additional 25 basis points hike is warranted to ensure price stability, as inflation still remains high and is projected to be above the target level for a considerable time,” the Bank of Korea wrote in a statement.
Governor Rhee Chang-yong said in a press conference that fourth-quarter GDP for 2022 is likely to be negative, but estimated that 2023’s first quarter GDP growth could be better.
“Today’s hike marks the end of the BoK’s current tightening cycle, but the hurdle for a pivot towards an easing bias remains high,” ANZ Research’s economist Krystal Tan wrote in a note.
— Lee Ying Shan
CNBC Pro: Want a recession-proof portfolio? Fund manager names two stocks that could fit the bill
Investors looking for recession-proof stocks may want to consider buying shares in a renewable energy producer and a cyber security firm, according to one outperforming fund manager.
Trent Masters of investment management firm Alphinity, who named the stocks, said that while the energy company can raise prices above inflation even during a recession, the cyber security firm will see increased demand for its services this year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Uniqlo-owner Fast Retailing drops more than 6% after announcing wage hike
Shares of Uniqlo-owner Fast Retailing dropped 6.68% a day after announcing it will raise wages by 40%.
“This war for talent is intensifying, that [Tadashi Yanai], the founder of Uniqlo, is fully recognizing,” Jesper Koll, expert director at Monex Group, told CNBC’s “Squawk Box Asia” regarding the wage hike move.
“Japanese workers have realized their value, have realized their worth… and as a result of that, if you want to retain that talent, you’re going to have to start to pay up.”
Fast Retailing is a heavyweight of Japan’s benchmark Nikkei 225, which declined 0.6%, bucking the overall positive trend of Asia-Pacific shares.
Koll added that while Fast Retailing is doing a “great job” in the physical space, its e-commerce presence still has room to improve.
“For now [that’s] not going to be a key growth driver,” he said.
—Lee Ying Shan
Cryptocurrencies inch higher even as SEC charges crypto firms
Cryptocurrencies rose even after the U.S. Securities and Exchange Commission charged crypto firms Genesis and Gemini with selling unregistered securities.
Bitcoin traded 4.81% higher at $18,838.66, according to data from Coin Metrics. The coin on Thursday jumped above $19,000, its highest in more than two months.
Ether rose 1.67% to stand at $1,414.65.
The SEC alleged Genesis loaned Gemini users’ crypto and sent a portion of the profits back to Gemini, which deducted an agent fee and returned the remaining profit to its users.
—Lee Ying Shan, Kate Rooney
CNBC Pro: Goldman Sachs says Asia tech is about to rebound — and reveals a chip stock to play it
After a tough year for Asia tech, Goldman Sachs believes the sector is headed for a “major bottom” — and subsequent upturn — in the first half of 2023.
Investors seeking to cash in should act early, the bank’s analysts said, with stock prices set to “rebound rapidly.”
They also named a key chip stock to play it.
Pro subscribers can read more here.
— Zavier Ong
Stocks close up
Stocks ended Thursday’s trading session in the green.
The Dow and Nasdaq Composite each ended up 0.6%. The S&P 500 gained 0.3%.
Close marked the fifth straight day of gains for the Nasdaq as investors bought beat-up technology stocks on hopes of an improving outlook for growth names. That’s the first time the index has posted a streak of that length since July.
— Alex Harring
Fed will be unfazed by CPI report
The slight decline in consumer prices in December will not change the path for the Federal Reserve, as it meets to raise rates Jan. 31 and Feb. 1.
CPI fell by 0.01%, as expected by economists, and was up 6.5% from a year ago. Core CPI rose 0.03%, also as expected.
“The Fed has made clear even as markets push back on the Goldilocks scenario in the employment report, the Fed was doubling down on their pledge to derail inflation because they see this as a marathon not a sprint,” said Diane Swonk, chief economist KPMG.
Stock futures were higher after the report while Treasury yields fell. Yields move opposite price.
“It was exactly in line. They ran up the S&P 500 by 50 points yesterday with everyone hoping for a weak number. It was as expected. It doesn’t change anything,” said Peter Boockvar, chief investment officer at Bleakley Financial. “They are almost done raising rates. Higher for longer is what people should be focused on.”
Swonk and other economists expect the Fed to raise rates by a half percentage point on Feb. 1. The futures market, however, has been pricing in a quarter point hike.
–Patti Domm
CPI shows shelter inflation still worrisome
Shelter costs, which includes rent, jumped more than expected in the December consumer price index, and that is an area economists are watching closely.
Shelter rose 0.8%, or 7.5% from a year ago. Some economists had expected a gain of 0.6% in shelter, which accounts for 40% of core CPI. The shelter costs in CPI are known to lag the actual market data on rentals.
“In this single month-over-month report, there is almost no inflation outside of shelter,” said Wilmington Trust chief economist Luke Tilley “Goods prices are collapsing mostly because of motor vehicles and computers and laptops and technology. Used vehicle prices are down 27.5% at annualized rate over the past three months, and they’re likely to keep falling.”
Tilley expects shelter inflation to slow in the next couple of months. As for overall CPI, it fell by 0.01% as expected.
Greg Peters, co-chief investment officer of PGIM Fixed income, said the increase in shelter inflation is something to watch. He said the market had expected a slightly larger decline in headline CPI.
“I still think it’s largely fine. I think numbers will continue to come down. The real question is where does it start to level out?” said Peters. “That’s the piece of it that should be the point of focus. It’s great that CPI mechanically is coming down, and there’s some good news in the report. But that doesn’t mean the Fed gets close enough to its target that they get comfortable.”
Tilley said he expects 2023 will be unlike 2022, where inflation surprised to the upside. “We very well could see in 2023 the reverse of what happened in 2022 with inflation surprising to the downside,” he said.
–Patti Domm
Consumer price index for December matches expectations
The consumer price index fell 0.1% in December, matching a Dow Jones estimate. That was the biggest monthly decline since April 2020. The so-called core CPI, which strips out volatile food and energy prices, also met expectations with a 0.3%. gain.
On a year-over-year basis, the index rose 6.5%, still well above the Fed’s 2% inflation target.
— Fred Imbert
Asia-Pacific shares higher as U.S. inflation data remains in spotlight
SHANGHAI, CHINA – MARCH 01: Skyscrapers stand at the Pudong Lujiazui Financial District on March 1, 2022 in Shanghai, China.
Xiao Yang | Visual China Group | Getty Images
Asia-Pacific shares were mostly higher as investors look ahead to the U.S. consumer price index report Thursday. Economists expect inflation to have cooled in December, which could signal to the Federal Reserve that previous interest rates hikes have had their intended effects.
Australia’s S&P/ASX 200 closed 1.18% up at 7,280.4 after the release of the country’s November trade balance.
The Nikkei 225 closed flat to stand at 26,449.82 while the Topix climbed 0.36% to 1,908.18. South Korea’s Kospi edged up 0.24% to 2,365.1 while the Kosdaq dipped 0.15% to 710.82.
Hong Kong’s Hang Seng index declined fractionally, reversing earlier gains. Mainland China’s Shanghai Composite added 0.051% to close at 3,163.45 and the Shenzhen Component was up 0.23% to 11,465.73. China’s consumer price index rose 1.8% in December from a year ago, in line with Reuters’ expectations.
India’s inflation data for December is also slated for release.
Overnight on Wall Street, major stock indexes closed higher. Economists surveyed by Dow Jones expect the inflation print to show that prices cooled by a modest 0.1% in December from November.
Asia-Pacific shares trade higher ahead of U.S. inflation report
Thai baht to ‘recover the strongest’ among regional currencies on China reopening: Credit Suisse
The Thai baht will “recover the strongest” amongst other Southeast Asian currencies on China’s reopening, said Credit Suisse’s Asia FX strategist Max Lin.
Lin claimed Thailand has not implemented any sort of travel restrictions on Chinese tourists, and the government is “still very supportive” of the tourism freedom.
“It sounds like there still will be a lot of regional tourism demand,” he said, pointing to reports of Chinese outbound tourism activities on travel booking websites.
The Thai Baht has strengthened back to levels seen in April 2022 and last stood at 33.41 against the greenback.
—Lee Ying Shan
Apple’s Asia suppliers mostly fall after reports of in-house screen manufacturing
Shares of some Apple suppliers in Asia fell after Bloomberg reported that the company will begin making in-house screens in 2024.
South Korea listed stocks of LG Display fell 3.35% in its afternoon trade shortly after the report, while Samsung Electronics traded 0.17% higher. Taiwan Semiconductor Manufacturing Co. also traded 0.41% lower.
Separately, Shenzhen-listed shares of BOE Technology Group, or Jingdongfang, rose more than 1% as Reuters reported that the Apple supplier is planning invest a substantial sum to build new factories in Vietnam.
— Jihye Lee
Cryptocurrencies trade higher even as Coinbase announce layoffs
Cryptocurrencies inched higher after crypto company Coinbase announced plans to trim 20% of its workforce as it looks to preserve cash during the crypto market downturn.
Bitcoin last traded higher by 1.55% at $17,459.63 according to Coin Metrics. Ether gained 1% to $1,337.85.
Other digital coins like Cronos and Cardano also advanced gains.
CEO Brian Armstrong said there was “no way” to reduce expenses and increase its chances of “doing well in every scenario” without reducing head count.
—Lee Ying Shan, Kate Rooney
Philippines inflation will return to as low as 2% by 2024, says finance secretary
Inflation in the Philippines is expected to return to the government’s target range in two years, Finance Secretary Benjamin Diokno said.
Diokno said he is confident that average inflation for 2023 will be between 2.5% to 4.5% before easing to 2% to 4% by the next year, he told CNBC on the sidelines of the Asian Financial Forum in Hong Kong.
Headline inflation in the Philippines still remains high, increasing to 8.1% in December 2022 from 8% the month before, according to government data.
Bangko Sentral ng Pilipinas governor Felipe Medalla announced on Monday that interest rates will be raised by another 25 to 50 basis points in February. Diokno added he expects the central bank to pivot some time this year.
“There’s also the possibility that we will cut at some point in this year because we might be overshooting,” he said.
— Charmaine Jacob
Australia’s consumer prices rose 7.3% in November on back of higher housing and food prices
Australia consumer price index rose 7.3% year-on-year in November, according to data from the Australian Bureau of Statistics, a sign that inflationary pressures have yet to slow.
The figure is in line with Reuters’ expectations, and higher than last month’s reading of 6.9%.
Housing, food and transport were amongst the top components fueling the hike, the release said.
Separately, Australia reported an in crease in sales of 1.4% for November compared to a month ago, buoyed by Black Friday sales.
— Lee Ying Shan
CNBC Pro: This global ETF is the only fund that’s posted gains every year for the past decade
The only stock ETF to have had a positive return every year over the past decade has been revealed by CNBC Pro.
It is the sole fund of almost 7,000 equities ETFs worldwide screened by CNBC Pro not to have a single year of negative returns between Jan. 1, 2013, and Dec. 31, 2022.
It has also offered investors a 14% compounded annual growth rate over the same period, which is significantly more than broader index tracking funds, according to Koyfin data.
CNBC Pro subscribers can read more here.
— Ganesh Rao
South Korea’s unemployment rate climbs to 11-month high
South Korea’s unemployment rate for December climbed 3.3%, marking the highest in 11 months, government data showed.
The reading is higher compared to November’s figure of 2.9%
In spite the higher unemployment figure, the total number of employed people in 2022 came up to 28.089 million, up from 816,000 from a year ago.
– Lee Ying Shan, Jihye Lee
CNBC Pro: ‘An expensive mistake: Citi says stop hoarding cash — and reveals two areas to invest in
Investors endured a tough 2022, as stocks and bonds fell amid broader market turmoil.
While many sought refuge in the relative safety of cash, Citi says it’s now time to put it to work and named two ways to deploy it for higher returns.
Pro subscribers can read more here.
— Zavier Ong
Fed should stay politically independent while tackling inflation, Powell says
Fed Chairman Jerome Powell on Tuesday stressed the need for the central bank to be free of political influence while it tackles persistently high inflation.
In a speech delivered to Sweden’s Riksbank, Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.
“Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy,” the chair said in prepared remarks.
“The absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors,” he added.
— Jeff Cox
Copper hits highest price since June
Copper hit a high not seen since June.
The metal settled up just under 1.3% at $4.0775. It posted a high of $4.0835, which was its most expensive since it hit $4.1160 on June 17.
Copper has gained about 7% since 2023 began.
— Gina Francolla, Alex Harring
Coinbase to layoff 20% of workforce
Coinbase’s stock gained 6% after the crypto exchange operator announced plans to slash 20% of its workforce in an attempt to trim costs.
The layoffs will impact 950 jobs and marks the second round of cuts from the company in recent months. Coinbase laid off 18% of its workforce in June in preparation for a potential recession and crypto winter, saying that it had grown “too quickly” during the bull market.
Crypto markets have come under pressure following the collapse of FTX, one of the industry’s largest operators.
Coinbase said the new round of layoffs will bring down its operating expenses by 25% for the quarter ending in March, according to a new regulatory filing.
— Kate Rooney, Samantha Subin
Asia-Pacific shares trade higher ahead of U.S. inflation report
Thai baht to ‘recover the strongest’ among regional currencies on China reopening: Credit Suisse
The Thai baht will “recover the strongest” amongst other Southeast Asian currencies on China’s reopening, said Credit Suisse’s Asia FX strategist Max Lin.
Lin claimed Thailand has not implemented any sort of travel restrictions on Chinese tourists, and the government is “still very supportive” of the tourism freedom.
“It sounds like there still will be a lot of regional tourism demand,” he said, pointing to reports of Chinese outbound tourism activities on travel booking websites.
The Thai Baht has strengthened back to levels seen in April 2022 and last stood at 33.41 against the greenback.
—Lee Ying Shan
Apple’s Asia suppliers mostly fall after reports of in-house screen manufacturing
Shares of some Apple suppliers in Asia fell after Bloomberg reported that the company will begin making in-house screens in 2024.
South Korea listed stocks of LG Display fell 3.35% in its afternoon trade shortly after the report, while Samsung Electronics traded 0.17% higher. Taiwan Semiconductor Manufacturing Co. also traded 0.41% lower.
Separately, Shenzhen-listed shares of BOE Technology Group, or Jingdongfang, rose more than 1% as Reuters reported that the Apple supplier is planning invest a substantial sum to build new factories in Vietnam.
— Jihye Lee
Cryptocurrencies trade higher even as Coinbase announce layoffs
Cryptocurrencies inched higher after crypto company Coinbase announced plans to trim 20% of its workforce as it looks to preserve cash during the crypto market downturn.
Bitcoin last traded higher by 1.55% at $17,459.63 according to Coin Metrics. Ether gained 1% to $1,337.85.
Other digital coins like Cronos and Cardano also advanced gains.
CEO Brian Armstrong said there was “no way” to reduce expenses and increase its chances of “doing well in every scenario” without reducing head count.
—Lee Ying Shan, Kate Rooney
Philippines inflation will return to as low as 2% by 2024, says finance secretary
Inflation in the Philippines is expected to return to the government’s target range in two years, Finance Secretary Benjamin Diokno said.
Diokno said he is confident that average inflation for 2023 will be between 2.5% to 4.5% before easing to 2% to 4% by the next year, he told CNBC on the sidelines of the Asian Financial Forum in Hong Kong.
Headline inflation in the Philippines still remains high, increasing to 8.1% in December 2022 from 8% the month before, according to government data.
Bangko Sentral ng Pilipinas governor Felipe Medalla announced on Monday that interest rates will be raised by another 25 to 50 basis points in February. Diokno added he expects the central bank to pivot some time this year.
“There’s also the possibility that we will cut at some point in this year because we might be overshooting,” he said.
— Charmaine Jacob
Australia’s consumer prices rose 7.3% in November on back of higher housing and food prices
Australia consumer price index rose 7.3% year-on-year in November, according to data from the Australian Bureau of Statistics, a sign that inflationary pressures have yet to slow.
The figure is in line with Reuters’ expectations, and higher than last month’s reading of 6.9%.
Housing, food and transport were amongst the top components fueling the hike, the release said.
Separately, Australia reported an in crease in sales of 1.4% for November compared to a month ago, buoyed by Black Friday sales.
— Lee Ying Shan
CNBC Pro: This global ETF is the only fund that’s posted gains every year for the past decade
The only stock ETF to have had a positive return every year over the past decade has been revealed by CNBC Pro.
It is the sole fund of almost 7,000 equities ETFs worldwide screened by CNBC Pro not to have a single year of negative returns between Jan. 1, 2013, and Dec. 31, 2022.
It has also offered investors a 14% compounded annual growth rate over the same period, which is significantly more than broader index tracking funds, according to Koyfin data.
CNBC Pro subscribers can read more here.
— Ganesh Rao
South Korea’s unemployment rate climbs to 11-month high
South Korea’s unemployment rate for December climbed 3.3%, marking the highest in 11 months, government data showed.
The reading is higher compared to November’s figure of 2.9%
In spite the higher unemployment figure, the total number of employed people in 2022 came up to 28.089 million, up from 816,000 from a year ago.
– Lee Ying Shan, Jihye Lee
CNBC Pro: ‘An expensive mistake: Citi says stop hoarding cash — and reveals two areas to invest in
Investors endured a tough 2022, as stocks and bonds fell amid broader market turmoil.
While many sought refuge in the relative safety of cash, Citi says it’s now time to put it to work and named two ways to deploy it for higher returns.
Pro subscribers can read more here.
— Zavier Ong
Fed should stay politically independent while tackling inflation, Powell says
Fed Chairman Jerome Powell on Tuesday stressed the need for the central bank to be free of political influence while it tackles persistently high inflation.
In a speech delivered to Sweden’s Riksbank, Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.
“Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy,” the chair said in prepared remarks.
“The absence of direct political control over our decisions allows us to take these necessary measures without considering short-term political factors,” he added.
— Jeff Cox
Copper hits highest price since June
Copper hit a high not seen since June.
The metal settled up just under 1.3% at $4.0775. It posted a high of $4.0835, which was its most expensive since it hit $4.1160 on June 17.
Copper has gained about 7% since 2023 began.
— Gina Francolla, Alex Harring
Coinbase to layoff 20% of workforce
Coinbase’s stock gained 6% after the crypto exchange operator announced plans to slash 20% of its workforce in an attempt to trim costs.
The layoffs will impact 950 jobs and marks the second round of cuts from the company in recent months. Coinbase laid off 18% of its workforce in June in preparation for a potential recession and crypto winter, saying that it had grown “too quickly” during the bull market.
Crypto markets have come under pressure following the collapse of FTX, one of the industry’s largest operators.
Coinbase said the new round of layoffs will bring down its operating expenses by 25% for the quarter ending in March, according to a new regulatory filing.
— Kate Rooney, Samantha Subin
Asia-Pacific markets, Fed minutes, inflation, PMI, Singapore retail, Caixin services
Oil prices bounce after two days of declines on Chinese pent-up travel demand
Oil prices climbed more than 1% after seeing two days of declines, as China’s reopening added optimism for an economic rebound and support in demand.
Brent crude futures rose 1.08% to $78.68 a barrel, while the U.S. West Texas Intermediate futures gained 1.19% to $73.71 a barrel.
Investors appeared to have shrugged off concerns of a potential global recession dogged by shaky economic growth prospects of U.S. and China, leading to a more than 9% slump in oil prices in the past two days.
– Lee Ying Shan
CNBC Pro: Bank of America sees 50% upside in this global fertilizer stock due to a worldwide shortage
Bank of America sees a 50% upside in the shares of a global fertilizer maker due to a worldwide shortage.
The Wall Street bank says the company commands a 55% profit margin as it is insulated from the rise in natural gas prices.
CNBC Pro subscribers can read more here.
China’s Caixin services data shows improvement, remains in contraction territory
The Caixin China general services purchasing manager’s index showed easing of pressure on the sector for the month of December, with a reading of 48, maintaining in contraction territory.
The print rose from seeing a six-month low in the previous month with a reading of 46.7.
The 50-point mark separates growth from contraction. PMI readings are sequential and represent month-on-month expansion or contraction.
“Optimism improved significantly,” Caixin Insight Group’s senior economist Wang Zhe said, adding that the gauge for expectations for future activity rose nearly 4 points compared to a month ago.
“Service providers expressed strong confidence in an economic recovery following the easing of Covid containment measures,” said Wang.
– Jihye Lee
CNBC Pro: Tech’s had a brutal year. But four stocks have bright future, investor says
The technology sector took a bashing in 2022.
But investment pro Jason Ware is unfazed. He remains bullish on tech and named four stocks he likes.
Pro subscribers can read more here.
— Zavier Ong
Hong Kong’s S&P Global PMI indicates ease in private sector contraction
Hong Kong’s S&P Purchasing Managers’ Index ticked higher to 49.6 in December from 48.7 in November despite remaining in contraction territory for the fourth consecutive month.
S&P said a slower contraction seen in the city’s private sector was due to a pickup in business activity in the final month of 2022, buoyed by easing of Covid restrictions.
Demand in the city still remains subdued, S&P said, adding that overall new orders are shrinking on the back of deteriorating economic conditions.
— Lee Ying Shan
CNBC Pro: Citi is bearish on lithium — at least for the near future. But it’s giving some stocks big upside
Citi is bearish on lithium — at least for the near future. Lithium is a critical component of electric vehicle batteries.
But the bank remains bullish on its long-term outlook, and names three stocks to watch.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Fed officials expect higher rates for “some time,” minutes show
The Federal Reserve released the minutes from its Dec. 13-14 meeting, which showed central bank officials expect rates to be higher for “some time.”
“Participants generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path to 2 percent, which was likely to take some time,” the meeting summary stated. “In view of the persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy.”
“A number of participants emphasized that it would be important to clearly communicate that a slowing in the pace of rate increases was not an indication of any weakening of the Committee’s resolve to achieve its price-stability goal or a judgment that inflation was already on a persistent downward path,” the minutes said.
— Jeff Cox
November JOLTS better than expected
Job openings in November were 10.5 million, according to the latest Job Openings and Labor Turnover Survey, or JOLTS.
The report came in slightly better than expected even though it was little changed from the previous month. Analysts expected JOLTS to be about 10 million in November.
The number of hires and total separations were also little changed at 6.1 million and 5.9 million, respectively. There were also 4.2 million quits and 1.4 million layoffs and discharges during the month.
—Carmen Reinicke
Chinese ADRs rise in premarket trading
Chinese ADRs climbed in premarket trading after Ant Group received approval to increase its registered capital, a sign that Chinese regulators may be loosening their grip on the country’s tech sector.
Shares of JD.com and Alibaba each rose more than 6%. NetEase, Baidu and Trip.com were other stocks making notable moves higher.
Ant Group, which previously had its own IPO plans scuttled by regulatory concerns, was allowed to double its registered capital as part of the new plan.
— Jesse Pound
Asia-Pacific markets, Fed, Wall Street, Apple, Tesla, Japan PMI
Alibaba shares rise after Ant Group receives approval for capital plan
Shares of Alibaba listed in Hong Kong rose 6.43% in Wednesday’s morning trade – after China’s Banking and Insurance Regulatory Commission approved a plan for Ant Group’s capital expansion plan for its consumer financial unit based in Chongqing.
According to a notice posted last week, Chinese regulators gave the greenlight to billionaire Jack Ma’s financial technology firm to raise 10.5 billion yuan ($1.5 billion).
Ant Group is an affiliate of Alibaba in which the e-commerce giant owns 33%. Ant Group runs the Alipay mobile payments wallet in China. Alibaba’s shares rose 2.78% on Tuesday, the first trading session after the notice was posted.
Other companies named in the notice included Hangzhou Jintou Digital Technology Group, Nanyang Commercial Bank, Zhejiang Sunny Optical and China Huarong Asset management.
The approval marks progress in the state-led regulatory overhaul of the fintech giant.
– Jihye Lee, Evelyn Cheng
CNBC Pro: Analysts see these 10 global renewable energy stocks rising despite higher rates with one offering 50% upside
Skyrocketing energy costs have spurred investment in renewable energy across the world.
Swiss investment bank UBS named 10 prominent renewable energy players capitalizing on the trend and are set to outperform over the next year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Japan’s manufacturing activity marks weakest in more than two years
The au Jibun Bank Flash Japan Manufacturing Purchasing manager’s index for December posted a reading of 48.9, marking a second consecutive month in contraction territory.
The reading inched down from November’s 49.0, and marked the weakest figure since October 2020’s figure of 48.70.
The sustained contractions in production was attributed to “weak global economic trends,” the report stated.
—Lee Ying Shan
Tesla’s Asia suppliers fall after deliveries report
Tesla’s suppliers in Asia fell after it reported its fourth-quarter vehicle production and delivery numbers for 2022 that fell short of expectations.
The deliveries report showed 405,278 total deliveries for the quarter and 1.31 million total deliveries for the year, lower than expectations to see around 427,000 deliveries for the final quarter of the year.
Japan’s Panasonic lost 1.82% in early Asia trade – South Korea’s LG Chem fell 0.17% in earlier hours and Samsung SDI shed about 2%.
Shenzhen-listed shares of Contemporary Amperex Technology, or also known as CATL, fell 1.7%. Shares of Tesla closed down 12% on Tuesday on Wall Street.
– Ashley Capoot, Jihye Lee
CNBC Pro: Wall Street is bullish on this chip giant, with Morgan Stanley giving it 55% upside
The once-hot chip sector suffered in 2022, but Wall Street looks to be turning more optimistic on semiconductor stocks for the year ahead.
Recently, several pros have urged investors to take a longer-term view on the sector, given the importance of chips in several key secular trends.
Analysts named one stock in particular they’re bullish on, citing its earnings potential and future profitability.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Apple’s Asia suppliers trade mostly up in spite of production cut reports
U.S. manufacturing PMI slips at fastest rate since May 2020
The U.S. manufacturing price managers’ index, a measure of output, fell at the fastest rate in December since May 2020, according to S&P Global.
The index was 46.2 in December, down from 47.7 in November, according to data released Tuesday. Lower prices and contracting production levels weighed on the index. In addition, December saw a sharper than expected decline on new sales, with companies noting uncertainty due to the economic backdrop.
—Carmen Reinicke
Tesla sheds 13%, hits new 52-week low
The stock slipped more than 13%, hitting levels not seen since August 2020. The slide is coming off the worst annual performance for the stock – Tesla fell 65% in 2022.
—Carmen Reinicke
Apple market cap falls below $2 trillion
A selloff in Apple shares pushed the iPhone maker’s market capitalization below $2 trillion on Tuesday.
Shares shed 4% amid news that it’s reportedly cutting production on some items due to weak demand. Concerns over iPhone supply during the holiday period have mounted in recent weeks and pressured shares as shutdowns rippled through Apple’s major supplier in China.
The drop in shares contrasts a year ago, when Apple became the first U.S. company to hit a $3 trillion market cap.
Apple was the last of the mega cap technology stocks to hover above the $2 trillion level.
— Samantha Subin
U.S. will avoid recession in 2023, Goldman Sachs says
Goldman Sachs has an out-of-consensus forecast for the U.S. economy in 2023.
“Our economists continue to believe that the US will avoid recession as the Fed successfully engineers a soft landing of the economy,” analysts wrote Tuesday.
“This out-of-consensus forecast partly reflects our view that a period of below-potential growth is enough to gradually rebalance the labor market and dampen wage and price pressures,” the note said. “But it also reflects our analysis that indicates that the drag from fiscal and monetary policy tightening will diminish sharply next year, in contrast to the consensus view that the lagged effects of interest rate hikes will cause a recession in 2023.”
In addition, the bank today raised its 4Q22 GDP growth forecast by 10bp to +2.1% on the back of a surprisingly strong November Construction Spending release
“The disconnect between the resilience of the US economy in 2022 and the downdraft experienced by stocks is has been a key narrative of the past year,” Goldman said. “And, whether this disconnect continues, or the economy matches the market downdraft, or the market rebounds in the wake of an economic soft landing may be at least part of the narrative of 2023.”
—Carmen Reinicke