Hong Kong Removals: Tech, Consumer, Reopening Actions
Reopening tech and consumers led to gains in Hong Kong during Wednesday morning trading.
Tencent gained 5.53%, NetEase gained 6.94% and Alibaba increased by 4.74%.
Electric vehicle makers also saw gains, with Xpeng gaining 8.73%, Li Auto jumping 7.32%, and Baidu a rise of 5.56%.
Consumer names related to the reopening also rose, with Budweiser Brewing Company gaining 6.38%, Anta Sports gaining 5% and Li Ning gaining 4.64%.
Factory activity in China shows an additional increase in February
chinese official index of production purchasing managers rose to 52.6 in February, above the 50-point line that separates growth from decline, in response to data from the National Bureau of Statistics.
That compared with January’s reading of fifty.1 and above expectations of fifty.5, in response to economists polled by Reuters.
The non-manufacturing PMI rose to 56.3 – also above the January reading of 54.4, the best level since June 2022.
– Jihye Lee
Factory activity in Japan is slowing on the fastest rate in 2.5 years
A non-public survey by au Jibun Bank found factory activity in Japan slowed on the fastest pace in two and a half years in February.
The Industrial Purchasing Managers’ Index fell to 47.7 from 48.9 in January. It also marked the fourth straight month that factory activity in Japan remained in contraction territory.
A PMI reading above 50 indicates expansion, while a reading below 50 indicates a decline in growth.
Industrial production in Japan on Tuesday decreased by 4.6% in comparison with a month ago in January, the biggest contraction within the economy in eight months.
– Lim Hui Jie
Australia’s Gross Domestic Product to grow by 2.7% in 2022
Australia’s economy grew by 2.7% for the entire of 2022, in keeping with economists’ expectations, but lower than in 2021 at 5.9%.
On a quarterly basis, gross domestic product increased by 0.5 percent national statistical office data. Australia has already recorded five consecutive increases in quarterly GDP, but growth has slowed for the last two quarters.
The Australian dollar strengthened against the US dollar by 0.36%, while the S&P/ASX 200 fell by 0.22%.
CNBC Pro: Is ChatGPT the tip of the iceberg? Analysts reveal the potential uses of AI — and the stocks that may make the most of it
The success of ChatGPT captured the general public’s imagination — and investors’ attention. But HSBC says the chatbot may very well be the tip of the AI iceberg.
What next for AI? Wall Street analysts reveal its potential and list several firms that may play within the emerging space.
Pro subscribers can read more here.
— Zavier Ong
South Korea’s trade deficit narrowed in February
South Korea’s trade deficit narrowed to $5.3 billion in February after recording a deficit of $12.65 billion in January, in response to preliminary data.
In line with economists polled by Reuters, the newest reading is a smaller-than-expected deficit of $6.06 billion.
Exports fell by 7.5%, falling lower than the 8.7% drop expected – while imports rose by 3.6%.
– Jihye Lee
The stock market this yr may defy the standard March record of positive gains
March is normally a positive month for the stock market, but this yr could bring more of the identical turmoil that rocked investors in February.
Stocks are set to exit February with big drops, with the S&P 500 down 2.3% within the month to Monday. The index continues to grow by 3.7% annually.
“February is the second worst month of the yr with a mean decline of 0.21%, which is the second worst month after September,” said Sam Stovall, chief investment strategist at CFRA. “Nevertheless, March sees a mean increase of 1.1%, which is a rise of 64% of the cases.” March is the fifth best month for the S&P 500, in response to CFRA data dating back to 1945.
For more information, read the total article on CNBC Pro.
— Patti Domm, Tanaya Maceel
CNBC Pro: Top traders share 3 suggestions for purchasing stocks on this volatile market
US 10-year yields hit their highest since November
The 10-year US Treasury bond yields it hit a high of three.983% on Tuesday, the best since November 10 when the note hit 4.117%. Recently it was higher by about 3 basis points to three.955.
Treasury yields contributed to their surge in February as traders continued to ponder the prospects of a monetary tightening for longer than expected.
— Gina Francolla, Tanaya Maceel
UBS says Fed rate hikes pose “downside risk” to markets
In line with UBS Financial Services, the US Federal Reserve’s rate of interest hikes have affected stock markets.
“We consider the economy is in a late cycle with the Fed continuing to lift rates of interest and sure slowing growth. Tighter policies put markets in danger,” UBS senior economist Brian Rose wrote in a note to clients on Monday.
The corporate expects the S&P 500 to finish the yr near current levels, with more upside potential in cyclical markets outside the US, particularly emerging markets and Germany.
“We prefer value over growth,” Rose wrote.
In line with Rose, financial conditions haven’t tightened with the Fed’s rate of interest hikes. Fed raised rates of interest by 25 basis points on February 1 and hinted at further rate hikes in the approaching months.
— Pia Singh