Asia-Pacific stocks rise, BOJ remains unchanged in yield range

Asia-Pacific stocks rise, BOJ remains unchanged in yield range
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Gaming shares soar after China grants license approvals

Game shares traded on the Hong Kong stock exchange rose after China License approved for 88 gamesfurther easing Beijing’s gaming pressure, including NetEase, Tencent Holdings, and miHoYo.

shares NetEase It climbed as much as 6.81% in early trading and hit the highest level in more than four months. Tencent stocks rose 0.11%.

– Lee Ying Shan

UBS: Bank of Japan may raise yield curve control another 50 basis points

Tan Teck Leng, executive director of UBS Global Wealth Management, said the central bank of Japan will expand the 10-year treasury yield curve control range by another 50 basis points to a range below and above the 0% target of 1%.

“The scenario of a complete abandonment of the YCC is unlikely,” he said on CNBC’s “Squawk Box Asia”, adding that a move would be “unconventional” for the central bank.

“I think it’s easiest for them to remove the cap, let them find fair value – but then again there’s a lot of uncertainty, so we think they should at least raise the cap as a middle ground.” and an upper limit of 1.0%.

yield above 10-year Japanese Government Bonds It surpassed the upper ceiling of its band for the 5th consecutive session on Wednesday morning before the BOJ’s monetary policy announcement.

Japan’s November core manufacturing orders fell more-than-expected

Japan’s November private sector manufacturing orders fell 8.3% compared to the previous month. according to official data.

The drop was significantly larger than Reuters’ expectation for a 0.9% drop. Manufacturing orders fell 3.7% year-on-year.

Private sector machinery figures exclude orders that are variable for ships and electric power companies.

—Lee Ying Shan

CNBC Pro: Thinking of returning to Big Tech? This investor is especially wary of 2 stocks

CNBC Pro: Morgan Stanley says cheaper EVs are coming – and names global stocks that will benefit

According to Morgan Stanley, as electric cars become more and more popular, a new manufacturing technique is gaining attention that could make them more affordable.

The Wall Street bank said some automakers are outsourcing the process, which could benefit three of Asia’s leading parts suppliers.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Stocks end the day mixed, Dow down nearly 400 points

The Dow Jones Industrial Average Index ended the day lower as Goldman Sachs stocks put pressure on the stock index.

The Dow was down 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 finished the day at 11,095.11, up 0.14%.

— Tanaya Maceel

Bank of America thinks recession started later

A recession probably won’t begin until late 2023, as consumer spending is stronger than expected and the Federal Reserve makes it easier to intensify rate hikes, according to Bank of America.

“Given the resilience of consumer spending due to strong labor markets, excess savings, falling energy prices and easier financial conditions, we are delaying the timing of our outlook for a moderate recession in the U.S. economy by about a quarter,” the firm said. and customer notes. “However, we think headwinds will push consumers to cut spending and raise the savings rate as the year progresses.”

That puts the recession into the second quarter, caused by an investment-driven slowdown seeping into consumer spending.

After the Fed increased the benchmark borrowing rate by 4.25 points in 2022, it is expected to cut interest rates by increasing it by 0.25 points in February. This is expected to be followed by additional quarter point increases in March and May.

The firm said the rate cuts likely won’t come until 2024.

—Jeff Cox

Goldman Sachs shares slumped on earnings loss

Goldman Sachs shares fell 2.4 percent after Wall Street investment bank shares missed fourth-quarter earnings results analysts’ expectations on both the top and bottom lines.

The bank reported earnings per share of $3.32 on revenue of $10.59 billion. Consensus estimates required $5.48 in earnings and $10.83 billion in revenue share, according to analysts polled by Refinitiv.

The provision for credit losses also came in slightly above expectations.

— Hugh Son, Samantha Subin

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