Tag Archives: Shenzhen

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.

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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

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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

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Asia-Pacific markets trade mixed as region kicks off 2023

India’s cement stocks to perform well on government infrastructure spending, says IIFL Securities

India’s domestic cement stocks are set to rise on increased government spending on infrastructure, said Sanjiv Bhasin, director at investment management firm IIFL Securities.

“The government spending on both commercial and real estate, and [developments on] the infrastructure, is going to see cement companies do well,” Bhasin said on CNBC’s “Street Signs Asia” on Tuesday.

He said his firm is positive on companies such as Larsen & Toubro, Ultratech India, and Kotak Mahindra Bank, adding that cement prices in India is expected to rise as the country enters a period of high levels in construction activity.

Australian miners, metal prices fall as China Covid cases rise

Shares of mining companies listed in Australia fell in Tuesday’s afternoon trade as prices of metals fell in Shanghai as Covid infections soared in mainland China.

The February copper contract trading on the Shanghai Futures Exchange fell 0.7% to 65,670 yuan per ton while aluminum fell 2.7% to 18,175 yuan per ton.

Sandfire Resources inched 0.18% lower while Oz Minerals traded 0.25% higher – Rio Tinto fell more than 1% while Yancoal Australia shed more than 4.6% and Whitehaven fell 5.89%. Fortescue Metals lost 0.73% and South32 traded 0.5% lower.

— Jihye Lee

Consumer growth in Asia remains a ‘massive challenge’ for region, says Singapore Exchange

Consumer growth in Asia remains a “massive challenge” for the region, as its economic growth is significantly dependent on trade, Geoff Howie, markets strategist at the Singapore Exchange said.

Howie pointed to South Korea and Taiwan’s declines in exports since May 2021 as well as Singapore’s non-oil exports contracting by 14.6% in November.

There have been “much hinges on trade and tech, and we are expecting moderation in global trade,” he said on CNBC’s “Street Signs Asia” on Tuesday. “Consumer growth is an area that we have to really watch,” Howie said.

– Charmaine Jacob

‘Rough front half, better second half for tech stocks’: Jefferies shares 2023 outlook

The first half of 2023 is going to be a “tough setup” for tech stocks, Brent Thill, managing director and senior analyst of investment firm Jefferies, told CNBC’s “Street Signs Asia” Tuesday.

“You still have the economic overhang that is going to be impacting earnings as we go into the beginning of this year. Companies have to lower numbers and expectations are still coming down,” said Thill.

He projected things to turn around in the second half of 2023, as it “takes time” for effects from macro economic conditions such as rising interest rates to unravel and “investors start to look at 2024 numbers being reset.”

“I think the worst-case scenario is that 2023 could be a total wash,” said Thill, adding that Jefferies is expecting a recession to hit the third quarter, which is later than most expect.

– Sheila Chiang

Oil prices to fall to $70-levels by end of 2023, says analyst

The price of Brent oil will fall to the lower end of $70 a barrel by year’s end, according to Citi’s global head of commodities research, Ed Morse, adding volatility surrounding the oil markets will remain.

“We’re expecting volatility to be about what it was last year,” said Morse. “We’re looking at Brent prices going down by the end of the year to the low 70s,” he estimated.

A number of oil producing countries are facing extreme difficulties, Morse said. He also expects demand for oil to be kept low due to a prolonged recession in China.

Developments on Russia’s war on Ukraine will also add onto volatility in prices, Morse added.

Brent crude dipped 0.43% to $85.57 a barrel. The U.S. West Texas Intermediate crude traded down 0.39% to $79.95. 

—Lee Ying Shan

Japanese yen at strongest levels in seven months

The Japanese yen hovered around its strongest levels since early June, Refinitiv data showed.

The currency last traded at 129.7 against the U.S. dollar after strengthening past the key technical level of 130.4 that it last saw in August. Late last year, the yen depreciated significantly and hit its weakest levels in 32 years.

The currency weakened past 151 against the greenback in mid-October as the Bank of Japan maintained its ultra-dovish monetary policy and yield curve control strategy. But the yen has since strengthened after the central bank widened its YCC band last month.

– Jihye Lee

China’s Caixin PMI shows further factory activity decline

China’s factory activity slid further into contraction territory in December, a private sector survey showed.

The Caixin/Markit manufacturing purchasing managers’ index fell further to 49 in December after recording 49.4 in November – remaining below the 50-point mark that separates growth and contraction.

The survey saw improved optimism among businesses, the release said, adding that firms expressed confidence in China’s economic recovery following the relaxation of most of its stringent Covid measures.

Separately, China’s National Bureau of Statistics said the official manufacturing PMI fell to 47 for the month, marking the biggest drop since the start of the Covid outbreak in January 2020.

– Jihye Lee

Singapore economy grew 3.8% in 2022

Singapore’s economy saw full-year growth of 3.8% for 2022, according to data released by the Ministry of Trade and Industry on Tuesday.

The economy grew 2.2% in the fourth quarter compared with a year ago, the slowest pace since mid-2021 but beating expectations of 2.1% from a Reuters poll.

The latest figures reflected continued recovery in the service sector that followed lifting of domestic and border restrictions since April, the ministry said in a statement, adding that the accommodation sector expanded for the first time since mid-2021.

— Jihye Lee

Bank of Japan is reportedly considering hiking its inflation forecasts in January, according to Nikkei

Japan’s central bank is reportedly considering boosting its inflation forecasts in January to reflect price growth that’s closer to its 2% target in the 2024 fiscal year, according to a Dec. 30 report from Nikkei, citing sources familiar.

The move could be laying the groundwork for a shift toward tighter fiscal policy, according to the report.

The report arrives more than a week after the Bank of Japan changed its bond yield controls, allowing long-term interest rates to rise more. The rate on the 10-year bond will be allowed to fluctuate by half a percentage point above and below the nation’s target of 0% – up from a quarter-percentage point range.

Retail sales have also ticked higher in Japan, rising for a ninth consecutive month in November.

Darla Mercado

Week ahead: PMIs in Asia-Pacific, trade data, inflation readings

Key economic events in the Asia-Pacific next week will be dominated by Purchasing Managers’ Index readings in the region.

China’s National Bureau of Statistics is scheduled to release the official manufacturing and non-manufacturing PMI prints on Saturday. Reuters expects China’s factory activity to show a contraction with a reading of 48.

South Korea is also slated to report its December trade data over the weekend, in which economists polled by Reuters predict will show a drop of 10.1% compared with a year ago.

Singapore is scheduled to release manufacturing PMI readings next week, while S&P Global is scheduled to release its PMI readings for South Korea, Indonesia and India on Monday.

Inflation prints for the Philippines and Indonesia will also be closely watched, with the releases scheduled for Tuesday and Monday, respectively.

Japan’s PMI reading and China’s private survey for services PMI will be released on Wednesday. Singapore will release November’s retail sales on Thursday as well as South Korea’s unemployment rate for December.

– Jihye Lee

CNBC Pro: Wall Street veteran names the stocks that could go to $0 — and his favorites in tech

2022 has marked the end of an era of cheap money, and that’s bad news for companies with a “growth at all costs” approach, said David Trainer, CEO of investment research firm New Constructs.

In the year ahead, investors will need to exercise due diligence in distinguishing between good and bad firms, he told CNBC Pro.

That’s because the U.S. Federal Reserve’s interest rate hikes in 2022 have “ended the era of super easy money,” and exposed many companies with bad business models. He calls those companies “zombie stocks” with heavy cash burn.

He highlights a list of such names to avoid and what to buy instead.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Final market stats for 2022

Friday was the final trading day of the 2022, but also for the quarter, month and year. Here’s how the major market averages fared over those time frames.

The Dow finished:

  • down 8.78% for the year
  • up 15.39% for the quarter
  • down 4.17% for the month
  • down 0.17% for the week

The S&P 500 finished:

  • down 19.44% for the year
  • up 7.08% for the quarter
  • down 5.90% for the month
  • down 0.14% for the week

The Nasdaq Composite finished:

  • down 33.10% for the year
  • down 1.03% for the quarter
  • down 8.73% for the month
  • down 0.30% for the week

The Russell 2000 small caps finished:

  • down 21.56% for the year
  • up 5.8% for the quarter
  • down 6.64% for the month
  • up 0.02% for the week

— Jesse Pound, Christopher Hayes

CNBC Pro: 2023 looks good for the market — especially for one ‘extremely attractive’ asset class: Fund manager

Markets have bottomed and things are looking up for stocks and bonds, which could rally more than 10% in 2023, according to one portfolio manager.

Jay Hatfield, CEO and portfolio manager at Infrastructure Capital Advisors, also highlighted the “conviction investment themes” he expects will be very attractive in 2023.

That includes one asset he said could beat its peers.

CNBC Pro subscribers can read more here.

— Weizhen Tan

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Asia-Pacific shares, China, yuan, Bank of Japan, Hang Seng index

Hong Kong’s John Lee announces further easing of measures

Hong Kong will remove all mandatory PCR tests for inbound travelers, Chief Executive John Lee said in a press briefing announcing further easing of the city’s Covid restrictions.

Lee added the city will also cancel the vaccine pass scheme, adding that the government will adopt “more targeted measures” for elderly vaccination.

Hong Kong will also remove all social distancing measures, including a ban on group gatherings of more than 12 people, Lee said, adding the measures will take into effect Dec. 29.

– Jihye Lee, Lee Ying Shan

Hong Kong to scrap Covid tests for arrivals, SCMP reports

Hong Kong is slated to scrap its mandatory PCR tests for inbound travelers, South China Morning Post reported, citing people familiar with the matter.

The report added that Hong Kong will fully drop its vaccine pass scheme, which requires proof of three doses of Covid vaccination to enter certain premises – the city will also remove a mandatory five-day home isolation for close contacts.

Hong Kong Chief Executive John Lee is expected to announce the latest updates in a media briefing at 3:30 p.m. local time.

The measures will also include lifting a current ban on public gatherings of more than 12 people, while maintaining rules for wearing masks.

—Lee Ying Shan

Hong Kong reopening stocks rise on China’s reopening measures

Nio shares plunge after trimming fourth quarter delivery outlook

Hong Kong-listed shares of Chinese EV maker Nio dropped 9.11% in Asia trading hours after the company lowered its fourth quarter delivery outlook, citing supply chain disruptions from Covid outbreaks in major Chinese cities.

The company now expects to deliver between 38,500 to 39,500 vehicles, down from its initial projection of 43,000 to 48,000 vehicles, according to the updated delivery guidance.

Its New York-listed shares saw an 8% drop during U.S. trading hours.

— Rebecca Picciotto, Lee Ying Shan

South Korea expected to see a further drop in exports and imports

South Korea’s export growth in December is expected to mark the third month of annualized drop, according to economists polled by Reuters.

Average forecasts project exports to fall 10.1% in December on an annualized basis – a slight improvement after seeing a drop of 14% in November, when it saw the biggest contraction since May 2020.

Economists expect the country’s import growth in December to have dropped 0.6%, resulting in a trade deficit of about $6.7 billion.

South Korea is scheduled to release its trade data on January 1.

— Lee Ying Shan

Bank of Japan says yield curve tolerance adjustment doesn’t mean monetary policy change

The Bank of Japan reiterated that its latest decision to expand the yield curve control tolerance range does not mean a change in its direction of monetary policy, according to the Summary of Opinions from its December meeting.

“The expansion of the range of 10-year JFB yield fluctuations from the target level is not intended to change the direction of monetary easing,” it said.

“It is a policy measure to make the current monetary easing … more sustainable,” it added.

Japan’s central bank added that reviewing its inflation target of 2% is “not appropriate.”

“Revision of that value is not appropriate since it could make the target ambiguous and the monetary policy response inadequate,” it said.

– Jihye Lee

Tesla’s Asia suppliers fall after production halt reported at Shanghai plant

Shares of Tesla suppliers in Asia fell as production at the company’s Shanghai plant reportedly remained paused after seeing a wave of Covid infections among its Chinese workforce.

South Korea’s LG Chem fell 3.66% and Japan’s Panasonic lost 0.31% in early Asia trade. Shares of Contemporary Amperex Technology, also known as CATL, fell 3.39%.

– Jihye Lee

Oil prices supported by China reopening and Moscow’s decree to ban oil sales

Oil prices rose on the back of a potential demand boost fueled by China’s reopening, as well as Moscow’s announcement to ban oil sales to countries participating in the U.S.-led price cap on Russian crude.

Brent crude futures rose 0.2% to $84.50 a barrel, while the U.S. West Texas Intermediate futures gained 0.19% to $79.7 a barrel.

According to a decree by Russian President Vladimir Putin, which was published on the Kremlin portal, Moscow said the established ban “applies to all stages of sales up to and including the final buyer.”

– Lee Ying Shan

U.S. weighs new rules for travelers from China

The U.S. government is considering imposing new Covid rules for travelers from China, officials said.

“There are mounting concerns in the international community on the ongoing COVID-19 surges in China and the lack of transparent data, including viral genomic sequence data, being reported from the PRC,” officials said.

Separately, Japan announced on Tuesday it would require a negative Covid test for visitors from China starting Dec. 30.

Read the full story here.

– Jihye Lee

China’s factory activity expected to contract for third straight month

China’s official manufacturing Purchasing Managers’ Index for December is expected to come in at 48 on Saturday, below the 50-point mark that separates growth from contraction.

Analysts polled by Reuters predict the reading will remain unchanged from November’s reading released by the National Bureau of Statistics.

PMI readings are sequential and represent month-on-month changes in factory activity.

— Lee Ying Shan

Tesla extends suspension of production at Shanghai plant: Wall Street Journal

Tesla suspended production at a plant in Shanghai on Saturday after a Covid outbreak among its employees at the facility, the Wall Street Journal reported.

The decision comes as an extension of a planned eight-day production pause, according to the report. The electric vehicle maker had informed employees that production will resume on January 2, it said.

Tesla stocks plunged 11% at the close and continued to slide further in after-hours trading.

—Lee Ying Shan, Alex Harring

Platinum on pace for best quarter since 2009

Platinum is on track for its best quarter since 2009 — and stocks associated with the metal are also posting strong performances.

The metal is trading up nearly 19.86% compared with the start of the quarter. That’s the best performance platinum has seen since the first quarter of 2009, when it gained 19.89%.

If platinum surpasses that quarter, it will be the best quarter since the first in 2008. In that period, it gained 33.96%.

Stocks associated with platinum are rising in turn. During this quarter, Impala Platinum added 31.7%. Anglo American Platinum and Sibanye Stillwater followed, gaining 21% and 17.6%, respectively, in the same period.

The Platinum Investment Council attributed some of the price increase to physical stocks of the metal being imported into China, which has decreased supply elsewhere.

— Alex Harring, Gina Francolla

Oil hits three-week high as investors cheer China’s quarantine changes

Oil prices reached a three-week high as investors hedged hopes of demand recovering on the latest news of China’s Covid restrictions easing.

Brent crude gained $1.55, or 1.9%, to $85.47 a barrel. U.S. West Texas Intermediate crude added $1.37, or 1.7%, to $80.93. 

Both hit highs not seen since Dec. 5 earlier in the trading day. China’s National Health Commission said Monday it would stop requiring travelers coming into the country to quarantine, a move viewed by investors as a key step in rolling back the Covid restrictions that have hampered global supply chains and travel.

China-linked stocks rise as country eases restrictions

Shares of China-based companies trading on U.S. exchanges rose in the premarket as the country eases Covid restrictions. China announced it plans to lift quarantine requirements for travelers beginning Jan. 8.

Shares of Alibaba gained 1.5%, while JD.com and Pinduoduo rose more than 2% each.

China ETFs also gained, with the KraneShares CSI China Internet ETF up 2.7% in the premarket, on pace for its first gain in three sessions. iShares China Large-Cap and iShares China Large-Cap added 2% each.

The news also lifted Macau-linked casino stocks in the premarket. Las Vegas Sands was last up 1.4%, while Wynn and Melco Resorts rose 2.5% and 4.2%, respectively.

— Samantha Subin

International and emerging market stocks seen returning most over next 7 years, GMO says

International stocks, but especially emerging market stocks — and most notably emerging market value stocks — offer the greatest likelihood of outperforming large and small stocks in the U.S. over the next seven years, even after adjusting for inflation, according to the latest monthly projection from Grantham Mayo Van Otterloo & Co.

Emerging market value stocks are likely to return a real 9% per annum over the next seven years, while emerging market stocks as a whole are forecast to return 5.2% a year. International small-cap stocks are projected to return a real 4.5% while international large-cap stocks come in at 2.4% a year, after inflation.

The U.S. isn’t forecast to keep up, with U.S. small caps projected to shrink 1.4% each year after inflation, and U.S. large caps estimated to fall an average 1.8% annually over seven years.

Similarly, emerging market debt is likely to end up as the best-performing fixed-income class, returning a real 3.5% annually, followed by U.S. cash at +0.8%, U.S. inflation-linked bonds at 0.3%. International bonds hedged against currency exposure are forecast to lose 1.8% a year and U.S. bonds to return -0.3%.

As stocks floundered in 2022, valuations improved and the outlook for future returns has brightened. At the start of 2022, GMO pegged emerging market value stocks to return +5% annually over seven years, emerging market stocks +2.2%, international small caps -1.2%, international large caps -2.5%, U.S. small caps -6.5% and U.S. large caps -7.3%.

U.S. cash was projected to lose the least amount of money at the start of the year, falling 1.1% a year after inflation looking out over the next seven years, followed by emerging market debt at -1.7%, U.S. inflation-linked bonds (-3.7%), U.S. bonds (-4.1%) and currency-hedged international bonds (-4.7%).

— Scott Schnipper

Treasury yields climb

Bonds yields climbed Tuesday, putting pressure on growth stocks like technology.

The yield on the 10-year Treasury note was last up by 11 basis points at 3.854%. The 2-year Treasury yield rose 8 basis points to last trade at 4.402%.

Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.

The tech-heavy Nasdaq Composite, which is more susceptible to moves in rates, last traded 1.2% lower.

— Samantha Subin

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Fed rate decision, South Korea Trade, Australia Unemployment, New Zealand GDP

China’s November retail sales see significant miss

China’s industrial production for November grew 2.2%, after seeing a growth of 5% in October, according to official data. That’s lower than expectations for growth of 3.6% in a Reuters survey.

Retail sales fell 5.9% on an annualized basis, further than expectations of a decline of 3.7% in a Reuters survey and a fall of 0.5% the previous month.

— Jihye Lee

JPMorgan expects Asian markets to end week with cautious tone after Fed hike

JPMorgan expects markets in the Asia-Pacific region to end the week on a cautious tone following the Federal Reserve’s interest rate hike of 50 basis points.

“Given the U.S. market reaction after the FOMC meeting, we expect Asian markets to end the week with more cautious tone,” Tai Hui, the firm’s Asia-Pacific chief market strategist, said in a note.

Tai added that a weaker inflation print is needed before the Fed’s hawkishness fades, while the region may have more optimism on China’s expected reopening.

“The medium term prospects of China’s economic reopening and Asia’s domestic demand resilience could be a bright spot as the U.S. and Europe face more growth challenges,” Tai said. “We would need more weak inflation data in order for the Fed to tone down its hawkishness.”

— Jihye Lee

South Korea’s revised trade data shows slightly narrower trade deficit

South Korea’s revised trade data for November was flat, official data from the Bank of Korea showed.

Imports grew by 2.7% while exports fell by 14%, in line with readings from the previous month, resulting in a trade deficit of $6.99 billion, slightly narrower than the previous month’s reading of $7.01 billion.

Prices for imports grew 14.2% compared with a year ago after seeing growth of 19.8% the previous month. Export prices grew 8.6% in November compared with a year ago, after growing 13.7% in October.

— Jihye Lee

Japan’s trade data beat estimates, reports wider-than-expected trade deficit

Japan’s exports and imports for November grew more than expected on an annualized basis, official data showed.

Exports for the month rose 20%, beating expectations of 19.8% in a Reuters survey. Imports rose 30.3%, also higher than expectations of 27% in a Reuters poll.

This resulted in a wider-than-expected trade deficit of 2.02 trillion yen ($14.91 billion) after posting 2.16 trillion yen ($15.96 billion) in the previous month.

— Jihye Lee

CNBC Pro: Missed China’s reopening rally? Bank of America names global stocks to ride the second-leg

Investors will have a second opportunity to take part in the stock market rally after China announced a relaxation of Covid-19 restrictions, according to Bank of America.

The bank named more than 10 stocks after having found “green shoots of recovery in high-frequency data” that point toward rising earnings at companies exporting to China.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Australia unemployment rate in line with expectations

Australia’s unemployment rate for November remained at 3.5% on an annualized basis, in line with expectations from a Reuters poll and flat from the prior month.

Official data from the Australia Bureau of Statistics showed the labor participation rate also remained at 66.7%, and the employment to population ratio remained at 64.4%.

Monthly hours worked increased to 1.89 billion.

— Jihye Lee

Fed announces 50 point rate hike

The Fed announced it will raise interest rates by 50 basis points, marking an end to the pattern of 75 point hikes seen in recent months.

Before this move, the Fed had raised rates by 75 basis points at the last four meetings. A basis point is equivalent to 0.01%.

The 50 basis point hike was widely expected ahead of the meeting.

It’s the final policy decision expected from the central bank in 2022.

Alex Harring

Powell wants ‘substantially more evidence’ that inflation is cooling

Federal Reserve Chairman Jerome Powell said Wednesday the recent positive signs for inflation aren’t enough for the central bank to ease back on interest rate increases.

“It will take substantially more evidence to have confidence that inflation is on a sustained downward” path, Powell said during his post-meeting news conference.

The comments came as the Fed raised its benchmark rate another half percentage point and indicated at least another three-quarters of a point in hikes are coming. The decision also occurs a day after November’s consumer price index reading was up just 0.1%, an indication that inflation may have peaked.

However, Powell said inflation remains a problem.

“Price pressures remain evident across a broad range of goods and services,” Powell added.

—Jeff Cox

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Beijing, Shenzhen loosen more Covid curbs as China easing gathers pace

Epidemic control workers who perform nucleic acid tests wear protective suits as they to prevent the spread of COVID-19 ride a scooter in a nearly empty street in Beijing, China. (Photo by Kevin Frayer/Getty Images)

Kevin Frayer | Getty Images News | Getty Images

Beijing residents cheered the removal of Covid-19 testing booths while Shenzhen followed other cities in announcing it would no longer require commuters to present their test results to travel, as an easing of China’s virus curbs gathered pace.

Although daily cases hover near all-time highs, some cities are taking steps to loosen Covid-19 testing requirements and quarantine rules as China looks to make its zero-Covid policy more targeted amid an economic slowdown and public frustration that has boiled over into unrest.

Three years into the pandemic, China has been a global outlier with its zero-tolerance approach towards Covid that has seen it enforce lockdowns and frequent virus testing. It says the measures are needed to save lives and avoid overwhelming its healthcare system.

China began tweaking its approach last month, urging localities to become more targeted. Initial reactions, however, were marked with confusion and even tighter lockdowns as cities scrambled to keep a lid on rising cases.

Then a deadly apartment fire last month in the far western city of Urumqi sparked dozens of protests against Covid curbs in a wave unprecedented in mainland China since President Xi Jinping took power in 2012. Cities including Guangzhou and Beijing have since taken the lead in making changes.

Less testing

On Saturday, the southern city of Shenzhen announced it would no longer require people to show a negative Covid test result to use public transport or enter parks, following similar moves by Chengdu and Tianjin, among China’s biggest cities.

Many testing booths in the Chinese capital of Beijing have also been shut, as the city stops demanding negative test results as a condition to enter places such as supermarkets and prepares to do so for subways from Monday, though many other venues including offices still have the requirement.

A video showing workers in Beijing removing a testing booth by crane on to a truck went viral on Chinese social media on Friday.

“This should have been taken away earlier!,” said one commentator. “Banished to history,” said another.

Reuters was not able verify the authenticity of the footage. At some of the remaining booths, however, residents grumbled about hour-long queues for the tests due to the closures.

Further reductions coming

China is set to further announce a nationwide reduction in testing requirements as well as allowing positive cases and close contacts to isolate at home under certain conditions, sources familiar with the matter told Reuters earlier this week.

Xi, during a meeting with European Union officials in Beijing on Thursday, blamed the mass protests on youth frustrated by years of the Covid-19 pandemic, but said the now-dominant Omicron variant of the virus paved the way for fewer restrictions, EU officials said.

Officials have only recently begun to downplay the dangers of Omicron, a significant change in messaging in a country where fear of Covid has run deep.

On Friday, some Beijing neighbourhoods posted guidelines on social media on how positive cases can be quarantined at home, a landmark move that marks a break from official guidance to send such people to central quarantine.

Still, the relief has also been accompanied by concerns, especially from groups such as the elderly who feel more exposed to a disease authorities had consistently described as deadly until this week, highlighting the difficulties Xi and Chinese leaders face in loosening.

China reported 32,827 new local Covid-19 infections for Dec. 2, down from 34,772 a day earlier.

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New Zealand interest rate hikes, inflation data

New Zealand central bank hints at more hikes ahead

Reserve Bank of New Zealand (RBNZ) governor Adrian Orr said that the bank’s sole target is to get the official cash rate to a point where inflation can be worn down.

Orr’s comments come after the central bank delivered its biggest rate hike of 75 basis points.

“Our core inflation rate is too high,” Orr said in a press conference, adding that the central bank is “well down on the path of the tightening cycle.”

In a separate press release shortly after the decision, the RBNZ said, “Committee members agreed that monetary conditions needed to continue to tighten further

— Lee Ying Shan

BYD shares drop after Berkshire Hathaway trims stake

Shares of BYD listed in Hong Kong traded 2.64% lower after Warren Buffett’s Berkshire Hathaway announced it cut its stake in the Chinese electric vehicle maker.

According to an HKEX filing, the company sold 3.2 million shares worth about 630 million Hong Kong dollars ($80.6 million), trimming its holdings of the company to 15.99% from 16.28%, the filing showed.

Separately, the company also announced it will raise prices for some of its EV models, according to Reuters.

– Jihye Lee

Shares of Kuaishou, Baidu rise after reporting earnings

CNBC Pro: UBS says self-driving cars could become a $100 billion market in China — and names stocks to play it

Electric vehicles are fast gaining traction, particularly in China, the largest EV market in the world.

But UBS believes autonomous driving will be an even bigger megatrend than electrification — with a market size in China alone of around $100 billion by 2030.

Here’s how investors can play this megatrend, according to UBS.

Pro subscribers can read more here.

— Zavier Ong

Xiaomi expected to post revenue decline for third quarter

Xiaomi is expected to see a decline in revenue for the third quarter of 2022, according to a mean of estimates from a Refinitiv poll.

The company is expected to see a 9.66% decline in revenue to 70.52 billion yuan ($9.87 billion) for the July to September quarter, compared with 78.06 billion yuan in the same period last year.

The expected dip is likely due to “tepid smartphone sales,” as well as the weak macro environment and consumer sentiment, Daiwa Capital Markets wrote in a note.

Xiaomi’s shares fell as much as 1.72% in morning trade ahead of the release, and was last around 1% lower.

–Lee Ying Shan

New Zealand dollar strengthens after biggest rate hike

New Zealand dollar strengthened to 0.6192 against the dollar after the central bank raised rates by 75 basis points, its biggest hike on record.

The NZD last traded at 0.6170 against the dollar and the NZX 50 index in New Zealand fell 0.8%.

The New Zealand 10-year Treasury yield briefly touched 4.305% shortly after the decision, and last traded at 4.235%. Yields move inversely to prices, and a basis point is equal to 0.01%.

– Lee Ying Shan

Singapore releases narrowed GDP estimates for 2022

Singapore’s economy is projected to grow around 3.5% in 2022, according to forecasts from the Ministry of Trade and Industry, citing a softening external demand outlook following Europe’s energy crunch and China’s continued Covid-related restrictions.

The figure is a narrowed estimate from its previous projected range of between 3% and 4% — and reflects the third quarter’s 4.1% annualized growth and 1.1% growth from the previous quarter.

The ministry also said it sees the nation’s 2023 GDP growth to be between 0.5% to 2.5%.

— Jihye Lee

New Zealand’s central bank hikes rates by 75 basis points

The Reserve Bank of New Zealand raised its official cash rates by 75 basis points, its biggest hike on record, to 4.25%.

The decision is in line with analysts’ expectations, according to a Reuters poll.

It is the ninth consecutive hike since the RBNZ first started its rate hike cycle in October 2021, five of which were 50 basis point hikes.

New Zealand’s Inflation currently stands at 7.2%, just below three-decade highs.

— Lee Ying Shan

Investors should rotate into second-tier Chinese tech stocks: UBS Global Wealth Management

Investors should take advantage of the bumpy ride in Chinese tech stocks to move into smaller and less established companies, according to Eva Lee, head of greater China equities at UBS Global Wealth Management’s chief investment office.

“Under the current regulation, the second tier players will do better than the top ones. Use this opportunity to rotate to companies that are second tier,” such as those with resilient income, she told CNBC’s “Street Signs Asia.”

Additionally, tech giants are perceived to be “macro recovery [proxies], and the path to an eventual full reopening is “going to be up and down, it’s going to be choppy,” she said.

“We are moving over there eventually but it takes time,” she said.

— Abigail Ng

Stocks rise, S&P 500 closes above key 4,000 level for first time since Sept.

Stocks rose Tuesday with all three major averages gaining more than 1% as Wall Street bet that interest rate hikes and inflation will ease heading into the end of the year. The S&P 500 also closed at a level not seen since September.

The Dow Jones Industrial Average closed 397.82 points, or 1.18%, higher at 34,098.10. The Nasdaq Composite also gained 1.36% to 11.174.41.

The S&P 500 rose 1.36% to close at 4,003.58, its first close above the 4,000 level since September.

—Carmen Reinicke

84% of today’s 19 S&P 500 52-week highs are all-time records

Nineteen stocks in the S&P 500 hit 52-week highs so far Tuesday and, of those, 16 (84%) also touched all-time highs. Three of the 19 (TRV, MRK, IBM) are also in the Dow Jones Industrial Average, and two of those are among the all-time highs:

  • General Parts Co. (GPC), highest since a 1948 IPO
  • O’Reilly Auto (ORLY), all-time high since 1993 IPO
  • TJX Cos. (TJX), all-time high back to 1987 IPO
  • General Mills (GIS), all-time highs back through history dating from 1927
  • Monster Beverage (MNST), all-time high back to predecessor’s Nasdaq listing in 1992
  • Pepsico (PEP), highest ever, going back to Pepsi-Cola’s merger with Frito-Lay in 1965
  • Marathon Petroleum (MPC), all-time high back to spinoff from Marathon Oil in 2011
  • Aflac Inc. (AFL), all-time back through CNBC data history in 1973
  • Arthur J Gallagher (AJG), all-time high back to 1984 IPO
  • Globe Life (GL), all-time high back to predecessor’s data in 1980
  • MetLife (MET), all-time high back to going public in 2000
  • Progressive (PGR), all-time high back to 1971 IPO
  • Travelers (TRV), all-time high back to spin-off from Citi in 2002
  • Gilead Sciences (GILD), highest since April 2020
  • Merck & Co. (MRK), all-time high back through CNBC history starting in 1978
  • PACCAR (PCAR), all-time high back to 1971 IPO
  • Quanta Services (PWR), all-time high back to 1998 IPO
  • Snap-On (SNA), highest since June 2021
  • International Business Machines (IBM), highest since Feb. 2020

There were two 52-week lows in the S&P 500 early Tuesday:

  • Tesla (TSLA), lowest since Nov. 2020
  • Medtronic (MDT), lowest since March 2020

No comment.

— Scott Schnipper and Christopher Hayes

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Hong Kong’s Hang Seng rises 2%, leads Asia markets higher after Powell’s inflation comments

HSBC says China’s latest inflation readings allow PBOC to maintain accommodative monetary policy

China’s latest inflation figures give the People’s Bank of China room to maintain its current monetary stance, HSBC said in a note.

“The moderation in price pressures gives the PBOC room to stay accommodative,” greater China economist Erin Xin said.

Xin added that the central bank is likely to further ease using structural tools such as “additional re-lending quotas for focus areas like manufacturing and green investment.”

—Jihye Lee

China consumer price index rises 2.5% in August, misses estimates

China’s consumer price index rose 2.5% year-on-year in August, lower than the 2.7% figure recorded in July, data from the National Bureau of Statistics showed, missing a Reuters poll forecast of 2.8%.

Producers price rose 2.3% for the month, also slower than a rise of 4.2% for July and missing estimates of 3.1%.

A report by Nomura earlier this week said 12% of China’s total GDP was impacted by Covid controls on a weighted basis — up from 5.3% last week.

Jihye Lee

Worst is not over for Japanese yen, analyst says

The Japanese yen’s depreciation is one of the more “rigorous” and “easiest” moves to explain because it is “based on real fundamentals,” director of Monex Group Jesper Koll told CNBC, adding it could plummet even further in coming months.

It is the most “textbook-driven currency move I’ve seen in 30 years,” he said.

Koll pointed towards the interest rate differential between the U.S. and Japan as one of the “powerful forces” that will move the yen, adding the chance of the Bank of Japan raising rates is “close to nil.”

Read the full story here.

—Charmaine Jacob

CNBC Pro: Uranium is ‘on a tear’ right now. Here are two ETFs to play it

One niche area of the commodity market — uranium — has been a bright spot over the past month, with its performance outpacing even that of the broader energy sector.

Two ETFs have surged in recent weeks, as the West scrambles to reduce its reliance on Russian energy.

Pro subscribers can read more here.

— Weizhen Tan

Bilibili plunges 16% at open after reporting second-quarter loss

Hong Kong-listed shares of Chinese video and gaming company Bilibili plunged more than 16% at the open after reporting a miss on its second-quarter earnings overnight.

The company reported a net loss of more than $300 million almost double the amount of loss reported for the same period a year ago.

Citi Research’s vice president of China internet and media Brian Gong, however, was optimistic and said regulatory concerns over the country’s gaming industry are easing.

Pointing to the government’s resuming of gaming licenses, Gong said “although their number is less than expected, it shows the environment is improving,” he said on CNBC’s “Squawk Box Asia,” adding that “the worst is behind us.”

—Jihye Lee

CNBC Pro: Citi just upgraded eight Chinese stocks

China’s “economic recovery looks to be slower than market expectations,” Citi’s stock analysts said in a Sept. 2 report.

They downgraded 12 China stocks — but upgraded eight. Here are three stocks from their updated list of top Hong Kong and mainland-traded Chinese stocks to buy.

Pro subscribers can read more here.

Evelyn Cheng

U.S. stock futures open little changed

U.S. stock futures opened little changed following a choppy session in the major averages as Wall Street considered the pace of future interest rate hikes.

Dow Jones Industrial Average futures rose by 23 points, or 0.07%. S&P 500 and Nasdaq 100 futures climbed 0.08% and 0.13%, respectively.

— Sarah Min

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Japan’s Nikkei rises 2% in mixed Asia session following Wall Street’s rebound rally

Australia’s central bank sees case for slower rate hikes

Reserve Bank of Australia Governor Philip Lowe said the central bank “recognizes” that “the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises.”

National Australia Bank economist Tapas Stickland said Lowe’s remarks may be “signaling a downshift to 25bp increments at some point.”

“Given lags in the operation of monetary policy and the rapid increase in interest rates over the past four months, this could be soon, and a pause is also likely at some point,” he said of Lowe’s remarks.

—Jihye Lee

Nio says Nvidia chip restrictions won’t hurt them

Nio said U.S. restrictions on Nvidia chip sales to China won’t affect the automaker’s business.

“We believe this will not have an impact on our business operations,” founder, chairman and CEO of Nio William Li said, according to a StreetAccount transcript of the company’s translation during an earnings call Wednesday.

“Based on our estimations, our computing power is sufficient for our autonomous driving technology development in the aspect of the AI training for now,” Li said.

Read the full story here.

— Evelyn Cheng

Oil prices climb following Russian threat to halt energy exports

Oil prices rose, rebounding from losses in the previous session, following Russian President Vladimir Putin’s threat to stop oil and gas exports if European nations impose price caps on Russian oil.

Brent crude futures climbed 1% to stand at $88.88 per barrel, while U.S. West Texas Intermediate added 1.1% to $82.83 per barrel.

“The easing in global oil prices was brought about by concerns around slower growth in China following the August trade data,” according to a Mizuho note.

—Lee Ying Shan

Freight rates peaked earlier than expected as global trade slows, S&P says

Freight rates for containers and dry bulkers — or vessels carrying raw materials and bulk goods — have fallen over the past three months, S&P said, adding that rates peaked earlier than expected in the second quarter.

S&P’s Freight Rate Forecast models have also predicted the Baltic Dry Index — a barometer for the price of moving major raw materials by sea — is expected to fall about 20% to 30% for the year before recovering slightly in 2024. 

This underscores the increasing risks of a global recession as consumer demand retreats amid rising cost of living and inflation.

Read the full story here.

— Su-Lin Tan

Australia posts record drop in trade surplus; iron ore and coal exports falll

Australia posted a record drop in its trade surplus mainly due to falling iron ore and coal exports.

Exports in July fell 10% from the month before while imports rose 5%, resulting in a shrunken trade surplus of $8.7 billion Australian dollars in July from A$17.1 billion the month before.

Capital Economics said the slumped trade surplus was “well below the analyst consensus of A$14.5 billion and even our bottom of the consensus forecast of A$10.5 billion”.

“The recent fall in the iron ore price hasn’t fully fed through to iron ore exports yet. Indeed, with the RBA’s commodity price index in August 20% below its peak in May, it’s clear that the trade surplus has peaked,” Capital Economics senior economist Marcel Thieliant said.

— Su-Lin Tan

Apple’s Asia suppliers rise after iPhone 14 announcements

U.S. dollar has legs to move even higher, Wells Fargo strategist says

The U.S. dollar has room to inch up even higher thanks to rate differentials on the back of a hawkish Federal Reserve, according to Wells Fargo Securities FX strategist Brendan McKenna.

“We think a lot of these international banks will not be able to raise rates as aggressively as the markets are priced in for,” he told CNBC’s “Squawk Box Asia.”

“So it’s kind of a combination of a more hawkish Fed and a less hawkish tightening cycle from these international central banks that support the dollar over the remainder of this year,” he said.

–Jihye Lee

Huawei launches first smartphone to connect to China’s rival to GPS

Huawei took the wraps off the Mate 50 smartphone, its latest attempt to stay relevant in the mobile market even as it has lost a huge amount of ground due to U.S. sanctions.

Huawei claims this is the first smartphone released to the public that can connect to China’s Beidou satellite networking, a rival to the U.S. state-owned Global Positioning System (GPS) that was completed in 2020.

U.S. sanctions on the company over the past three years have cut the company off from key components and software and crushed its smartphone business.

Read the full story here.

–Arjun Kharpal

Goldman Sachs raises Fed hike forecasts for this year

Goldman Sachs revised its forecasts for upcoming Federal Reserve rate decisions year.

Analysts led by chief economist Jan Hatzius said in a note that the firm expects a 75-basis-point hike in September, up from a previous forecast of 50 basis points, as well as a 50-basis-point hike in November, also revised from a previous projection of 25 basis points.

It also expects a 25 basis point hike in December — citing officials’ recent hawkish commentary.

The note said Fed officials “have seemed to imply that progress toward taming inflation has not been as uniform or as rapid as they would like,” the note said.

–Jihye Lee

Japan’s economy grew annualized 3.5%, beats estimates

Japan’s economy grew an annualized 3.5% in the second quarter, beating estimates from a Reuters poll forecasting a growth of 2.9%.

The economy grew 0.9% quarter-on-quarter, official data showed.

Spending growth will continue to be positive in Japan, according to Darren Tay, economist at Capital Economics Japan.

“Consumers do have a large pot of pandemic forced savings that they can rely on,” Tay said on CNBC’s “Squawk Box Asia,” adding that investors are betting on further widening of interest rate differentials between the Federal Reserve and a dovish Bank of Japan.

–Jihye Lee, Charmaine Jacob

CNBC Pro: Wall Street pro predicts when the S&P 500 will rally — and reveals how to trade it

Market volatility is here to stay, according to market veteran Phil Blancato.

But the president and CEO of Ladenburg Thalmann Asset Management sees a “strong rally” on the cards as market conditions improve.

He predicts when the rally will be, and names his top picks to trade the volatility.

Pro subscribers can read more here.

— Zavier Ong

All major averages close higher, Nasdaq snaps 7-day losing streak

Stocks rallied Wednesday as Wall Street looked past concerns about aggressive rate hikes coming from the Federal Reserve.

The Dow Jones Industrial Average gained 435.98 points, or 1.40%, to end the day at 31,581.28. The S&P 500 rose 1.83% to 3,979.90 and the Nasdaq Composite ticked up 2.14% to 11,791.90, breaking a seven-day losing streak.

—Carmen Reinicke

Brainard says Fed is ‘in this for as long as it takes’

Federal Reserve Vice Chair Lael Brainard pledged on Wednesday to continue the central bank’s flight against inflation, saying that rising prices were hurting lower income households.

“We are in this for as long as it takes to get inflation down,” Brainard said in prepared remarks for a speech in New York. “So far, we have expeditiously raised the policy rate to the peak of the previous cycle, and the policy rate will need to rise further.”

Brainard said there was some examples of prices coming down in the retail sector but that there “also could be scope for reduction” in the profit margins of auto companies in particular.

— Jesse Pound, Jeff Cox

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