Asian currencies strengthen against the dollar after the Fed meeting
Currencies within the Asia-Pacific region strengthened against the dollar US dollar index fell to 102 after the Federal Reserve raised rates of interest and suggested an end to the hike cycle.
The Japanese yen it strengthened within the afternoon in Asia by 0.6% to 130.7 against the US dollar. The Korean Won it also strengthened by 1.5% to 1,278.9 against the dollar
The australian dollar there was also a strengthening of over 0.8% to 0.6738 against the US dollar. Chinese land yuan it strengthened by 0.63% to six.8220 against the dollar.
Singapore headline inflation slows barely to six.3% in February
Singapore Consumer Price Index increased by 6.3% yr on yr for February, barely lower than the 6.6% recorded in January.
This was mainly attributable to lower inflation in private transport, he said Monetary Authority of Singapore.
Core inflation, which excludes accommodation and personal transport, remained stable at 5.5%.
MAS said it expects headline inflation to be between 5.5% and 6.5% in 2023, with core inflation predicting a core inflation rate of between 3.5% and 4.5%.
On Thursday, the Singapore dollar strengthened by 0.5% against the US dollar at 1.324.
– Lim Hui Jie
The Fed rate hike is a “big mistake,” says managing partner at Garcia, Hamilton and Associates
![US Fed raises interest rates 'too far and too fast', says investment management firm](https://image.cnbcfm.com/api/v1/image/107213690-16795323401679532338-28696314161-1080pnbcnews.jpg?v=1679543894&w=750&h=422&vtcrop=y)
Gilbert Garcia, managing partner at Garcia, Hamilton and Associates, said the US Federal Reserve is making a “big mistake” after raising rates of interest by one other 25 basis points.
He noted that the Fed is raising rates of interest “an excessive amount of, too soon” while all leading indicators appear to suggest that the US economy is at risk of recession.
“Whether it’s the expansion of the cash supply or the form of the yield curve – it’s really beginning to decelerate, we’re actually in for a recession,” he told CNBC’s Squawk Box Asia.
“I believe that they are going to raise rates of interest again can be an enormous mistake. They shouldn’t only stop raising rates of interest, they also needs to stop quantitative tightening.”
— Sumathi Bala
Tencent shares surge greater than 5% after revenue topped expectations
Stocks of the Chinese tech giant Tencent jumped 5.3% on Thursday as the corporate posted better-than-expected quarterly revenue the day before, buoyed by ad growth in its growing “video accounts” business.
The stock was one in every of the most important gains available in the market Hang Seng Indexand can also be the most important company on the HSI by index weight.
The broader Hang Seng index was up 0.78%, while the Hang Seng Tech index – of which Tencent and Lenovo are part – was up 1.62%.
– Lim Hui Jie
The most important Japanese banks result in losses on Topix
Japanese banks and finance posted losses on Topix on Thursday, following moves by U.S. regional banks after Treasury Secretary Janet Yellen said the FDIC was not considering extending bank deposit guarantees beyond the present limit.
Mitsubishi UFJ Financial was the most important loser amongst the most important Japanese banks, with its share price down 2.66%, while their counterparts Sumitomo Mitsui Financial AND Mizuho Financial Company decreased by 1.78% and 1.96%, respectively.
JPMorgan emphasizes a “defensive” approach to Asian markets
JPMorgan has highlighted the necessity to take a “defensive” approach to Asian markets following the Federal Reserve’s recent decision to boost rates of interest by 25 basis points amid recent volatility seen within the banking sector.
“For APAC investors, the recent Fed decision and stress within the banking sector in recent weeks reinforces our belief that we’d like to take a more defensive approach to asset allocation, specializing in high-quality fixed income,” said APAC chief market strategist, Tai Hui, in Thursday’s note.
He added that the Chinese economy would outperform in the approaching months, resulting in a “window of opportunity” for less export-dependent firms within the region. He expects currencies in Asia and emerging markets to also profit from a weaker dollar.
– Jihye Lee
Tencent reports higher quarterly revenues due to promoting sales
Chinese tech giant Tencent posted better-than-expected quarterly revenue, driven by ad growth in its growing “video accounts” business.
“This ad unit allowed them to unlock revenue from e-commerce, which was doing quite well,” James Lee, a US and Chinese web analyst at Mizuho Securities, told CNBC’s “Squawk Box Asia”.
Lee has a neutral rating for Tencent and a price goal of HK$400.
Internet marketing revenue within the fourth quarter grew 15% year-on-year to 24.7 billion yuan ($3.59 billion), bringing total revenue for the quarter to 144.95 billion yuan. That is greater than FactSet’s forecast of 143.89 billion yuan.
– Evelyn Cheng
Bill Ackman warns that the outflow of bank deposits could speed up
Billionaire investor and Pershing Square CEO Bill Ackman warned in a tweet that bank deposit outflows could speed up after Treasury Secretary Janet Yellen said the FDIC was not considering extending bank deposit guarantees beyond the present $250,000 limit.
Yellen’s statements led to a fall in shares of regional banks within the US
“I’d be surprised if the outflow of deposits didn’t speed up straight away,” Ackman wrote in his tweet.
In a separate tweet, Ackman said he was concerned markets were “heading for an additional trainwreck”, adding that he hoped regulators would “get it right”.
“The longer this banking crisis lasts, the greater the damage to smaller banks and their ability to access low-cost capital,” he said.
– Jihye Lee
Yellen says she is just not considering general deposit insurance
Treasury Secretary Janet Yellen said Wednesday that the FDIC is just not considering providing “comprehensive insurance” for bank deposits, in accordance with Reuters. Yellen made the remarks during a hearing before the U.S. Senate Appropriations Subcommittee.
Yellen said the administration was not considering extending bank deposit guarantees beyond the present $250,000 limit, Reuters reported. Some investors hoped that such an expansion would help prevent the crisis from spreading further.
— Yun Lee
The Fed raises rates of interest by 25 basis points
The Federal Reserve raised its benchmark interest rate by one other 25 basis points, in keeping with Wall Street’s predictions.
That is the central bank’s ninth hike because it began raising rates of interest in March 2022, and the primary announcement following the recent crisis within the banking sector. The rise raises the reference federal funds rate to a goal range between 4.75% and 5%.
The Federal Open Market Committee said in an announcement after the meeting that it “can be closely monitoring incoming information and assessing the implications for monetary policy.” The Fed forecasts only another rate hike this yr.
— Hakyung Kim
Financial conditions have tightened greater than the market shows, says Powell
Financial conditions appear to have tightened greater than US benchmarks indicate, Federal Reserve Chairman Jerome Powell said at a Wednesday news conference.
“Traditional indices focus heavily on rates of interest and stocks and do not necessarily reflect lending conditions,” Powell said when asked what financial situation would justify a cut in rates of interest, especially if credit conditions were to tighten even further. The banking crisis has intensified fears of a credit crunch, which occurs when banks significantly tighten their lending standards.
If tighter lending conditions are maintained, Powell acknowledged that it could easily have a big macroeconomic impact that can be factored into the Fed’s policy decisions.
“The query for us, nonetheless, is how significant that will be and what can be its scope and duration,” he said, adding that “rate cuts usually are not in our baseline scenario.”
— Pia Singh
Cryptocurrencies are rising ahead of the Federal Reserve’s interest rate decision
Bitcoins it hit a high of $28,790 on Wednesday, continuing its recent rally in cryptocurrency prices as investors awaited the conclusion of today’s afternoon Federal Reserve policy meeting. In response to Coin Metrics, this level is the best since June 11, 2022, when the worth of bitcoin was $29,405. Ether also gained 0.7% to $1,813.52.
Cryptocurrency stocks Global Coin Database previously it was up 0.4%, at an pace for the eighth consecutive positive day after the stock gained 37% to date this month. It recently fell 0.2% to $83.80. The rally marks a reversal of Coinbase’s poor performance throughout 2022, when its shares dropped 86%.
— Pia Singh
CNBC Pro: Morgan Stanley just updated global energy stocks it says have ‘significant’ upside potential
Morgan Stanley increased the worth of shares of the European energy company and in addition raised the share price goal.
In response to the bank, it has “one in every of the strongest balance sheets” and is “nearly debt-free”.
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: In response to Morgan Stanley, this e-commerce stock is up 300% up
E-commerce growth is back, and Morgan Stanley has several stock offerings for investors, including a less obvious name that it says has huge benefits.
Pro subscribers can read more here.
— Zavier Ong