Asia-Pacific markets mostly fall as investors digest Chinese economic data

Asia-Pacific markets mostly fall as investors digest Chinese economic data
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Goldman Sachs: China’s ‘exit wave’ of reopening is hurting economy

Goldman Sachs economists said in a report that the “exit wave” in China’s reopening process had dragged the economy down significantly.

“The ongoing ‘exit wave’ after China reopened faster than expected has had a heavy impact on economic activity in recent months, amid rising infections, temporary labor shortages and supply chain disruptions,” a report said. .

“It is surprising, in our view, that the figures reported for December have not been worse,” economists said.

– Jihye Lee

Credit Suisse says iron ore prices will peak around $130-140 this year

Saul Kavonic, Head of Energy and Resources Research at Credit Suisse, forecasts iron ore prices to be around $130 to $140 as traders keep China’s reopening in focus.

“We expect $130 to $140 to be where prices end and peak this year,” he said.

He said that while the strength in iron ore demand over the past few weeks has been supported by speculative buying and holiday buying, markets are currently watching how China reopens and any infrastructure stimulus is presented.

He said these measures “will sustain iron ore demand throughout this year until next year.”

Australian mining giant Rio Tinto announced fourth quarter production results slightly exceeding estimates.

“real focus [of] “Rio has been working on iron ore, which supports the entire industry, for the past few months, and this was a call that finally sounded good at the end of last year and early this year.”

Rio Tinto‘s shares were last traded down 1.11%.

—Lee Ying Shan

China’s retail sales beat forecasts, economy expands more than expected

China’s December retail sales beat estimates, which fell only 1.8% year-on-year; this is significantly better than the 8.6% drop predicted in a Reuters poll.

Industrial production also increased by 1.3% in December, above expectations for an increase of 0.2%.

In the fourth quarter, the Chinese economy grew by 2.9% year-on-year, above the 1.8% growth expectation. While quarterly growth remained flat, it still exceeded expectations for a contraction of 0.8%.

Despite better-than-expected data, the Chinese offshore yuan weakened sharply from 6.7403 to 6.7563 against the US dollar shortly after its announcement.

Alibaba shares soar after Ryan Cohen reportedly bought a stake in the company

Alibaba’s shares rise after the sale The Wall Street Journal reported Ryan Cohen has a stake in the company “worth hundreds of millions of dollars”.

Cohen, who founded online pet retailer Chewy and is also president of GameStop, is specifically pushing Alibaba to step up and further increase its share buyback program, according to the Journal report.

Alibaba’s shares traded in Hong Kong rose 2% in the first hour of trading. The stock has since split its earnings roughly straight into trading.

– Jihye Lee

Chinese Liu He to meet with US Treasury Secretary Janet Yellen

China’s Ministry of Commerce said that US Treasury Secretary Janet Yellen will meet with Chinese Vice Premier Liu He as part of the World Economic Forum. Declaration.

The ministry said the two will hold a meeting to “strengthen macroeconomic and fiscal policy coordination”.

The meeting will be held in Zurich on 1 January. It is reported that they will discuss the implementation of the agreements reached between US President Joe Biden and Chinese President Xi Jinping in Bali, Indonesia, on October 18.

The sit-down meeting will be the first face-to-face meeting between Yellen and Liu.

Separately, Politics It is reported that US Secretary of State Antony Blinken will meet with newly appointed Chinese foreign minister Qin Gang on February 2 in Beijing. 5-6 refers to Washington-based diplomats familiar with the matter.

– Jihye Lee

Singapore’s non-oil domestic exports fell more than 20% in December

Singapore’s non-oil domestic exports fell 20.6% year-on-year in December, down from 14.7% in November.

According to the government’s statement, the sharp decline was mainly due to exports to China, Indonesia and Hong Kong. It was stated that exports to South Korea and Japan increased.

The country’s total trade fell 7.7% in December from a year ago – exports fell 7.1% and imports fell 8.2%.

Jihye Lee

CNBC Pro: Investment banks say this overlooked stock of global carbon capture could rise 65%

Shares of an overlooked carbon capture company are expected to rise 65% due to rising global demand for emissions reduction technology, according to investment banks that analyzed the stock.

The company’s latest innovation, announced last week, could reduce the energy needed to capture carbon and increase 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 main indices come in in the first two weeks of 2023 trading

With the completion of the first two weeks of 2023, the three main indices have risen so far throughout the year.

This Nasdaq Composite It was leading up 5.9% as investors bought weakened tech stocks amid rising hopes for an improving outlook for growth assets. This S&P 500 and Dow It was followed by 4.2% and 3.5%, respectively.

—Alex Harring

Stock futures open lower

Stock futures tumbled despite the market exiting a winning week.

Futures tied to the Dow fell 0.1%. S&P 500 and Nasdaq-100 futures fell 0.2% and 0.4%, respectively.

—Alex Harring

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