Asia-Pacific markets trade mixed as region kicks off 2023

Tesla’s China boss effectively succeeds Musk: Report

Tesla has used its China boss, Tom Zhu, to oversee the company’s US assembly plants and its sales operations in North America, Reuters reported, citing an internal company filing of the report.

The news agency said Tesla’s organizational chart was posted internally and noted that the reporting lines for Zhu keep vehicle design and development separate but effectively make him deputy CEO Elon Musk, who focuses on managing sales and manufacturing worldwide. the world

Reuters added that the managers of the Texas Gigafactory, the senior manager of the Fremont factory and the leading vice presidents of Europe, the Middle East and Africa will report to Zhu – as will Troy Jones, the vice president of North American sales.

Electrek previously reported that Zhu will assume sales, service and delivery responsibilities in North America.

– Jihye Lee

Indian cement companies performing well on government infrastructure spending, says IIFL Securities

Sanjiv Bhasin, director of investment management firm IIFL Securities, said India’s domestic cement stocks are rising in line with government spending on infrastructure.

“Government lending on both commercial and real estate, and [developments on] infrastructure, will see cement companies doing well,” Bhasin said on CNBC’s “Street Notes Asia” on Tuesday.

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

The investment management firm says India's cement stocks 'should do very well'

As China’s Covid cases rise, Australian workers, metal prices fall

Shares in Australian-listed mining companies fell in midday trading on Tuesday as metals prices fell in Shanghai as Covid infections surged in mainland China.

The February copper contract traded on the Shanghai Futures Exchange fell 0.7 percent to 65,670 yuan a tonne, while aluminum fell 2.7 percent to 18,175 yuan a tonne.

Sandfire Resources inch 0.18% less when Oz Minerals trade rose 0.25% – Rio Tinto when it fell by more than 1% Yancoal Australia spilled more than 4.6% and Whitehaven 5.89% down. Fortescue Metals It lost 0.73% and South32 shed 0.5%.

– Jihye Lee

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

Inflation in Asia may be lower and faster than in the United States and Europe, the strategist says

Geoff Howie, market strategist at the Singapore Stock Exchange, said consumer growth in Asia remains a “big challenge” for the region, as its economic growth is heavily dependent on trade.

Howie pointed to the decline in exports to South Korea and Taiwan since May 2021, as well as Singapore’s non-oil exports falling 14.6 percent in November.

On trade and technology “there’s a lot to do, and we expect moderation in global trade,” he said Tuesday on CNBC’s “Street Notes Asia.” “Consumer growth is an area we have to really watch,” Howie said.

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– Charmaine Jacob

‘Tough first half, better second half for tech stocks’: Jefferies shares 2023 outlook

Tech stocks to face tough environment in first half of 2023, analyst says

Brent Thill, managing director and senior analyst at investment firm Jefferies, told CNBC’s “See Signs Asia” on Tuesday that the first half of 2023 will be a “tough session” for tech stocks.

“You still have economic uncertainty that will affect earnings as we go into the beginning of this year. Companies are going to have to cut numbers and expectations are still going down,” Thill said.

He predicted that things will turn around in the second half of 2023, as it “takes time” for the effects of macro economic conditions such as rising interest rates to wear off and “investors are starting to look at the 2024 numbers.” -or see what’s being updated.”

“I think the worst-case scenario is that 2023 could be a complete washout,” said Thill, adding that Jefferies expects a rebound in the third quarter, which is later than most expect.

– Sheila Chiang

The price of oil will drop to 70 dollars by the end of 2023, the analyst says

Brent oil prices will fall below $70 a barrel by the end of the year, according to Citi’s global head of commodity research, Ed Morse, adding that volatility around oil markets will remain.

“We expect volatility to be in line with last year,” said Morse. “We’re looking at Brent prices going down to the low 70s by the end of the year,” he predicted.

Morse said, a number of oil producing countries are facing serious difficulties. He also expects oil demand to remain subdued due to a prolonged recession in China.

Developments on Russia’s war on Ukraine will also add to the price volatility, Morse said.

The barrel of Brent oil decreased by 0.43 percent and became 85.57 dollars. US West Texas Intermediate crude oil dropped by 0.39 percent to $79.95.

– Lee Ying Shan

The Japanese yen is at its strongest level in seven months

that one Japanese yen It hovered around its strongest levels since early June, Refinitiv data showed.

The currency last traded at 129.7 against the US dollar after breaching the key technical level of 130.4 last seen in August. At the end of last year, the yen fell sharply and reached its weakest level in 32 years.

The greenback weakened to 151 against the greenback in mid-October as the Bank of Japan continued its accommodative monetary policy and control strategy. But the yen has since strengthened after the central bank widened its YCC bond last month.

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– Jihye Lee

China’s Caixin PMI shows further decline in factory activity

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

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

The survey found improved optimism among businesses, the release said, adding that firms expressed confidence in China’s economic recovery following the easing of most of its strict 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’s economy grew by 3.8 percent in 2022

Singapore’s economy is expected to grow by 3.8% in 2022, according to data released by the Ministry of Trade and Industry on Tuesday.

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

The latest figures show continued improvement in the services sector after the lifting of domestic and border restrictions from April, the ministry said in a statement, adding that the accommodation sector expanded for the first time since mid-2021.

– Jihye Lee

The Bank of Japan has announced that it is raising its inflation forecasts for January, according to the Nikkei

Japan’s central bank is considering raising its inflation forecasts in January to keep price growth close to its 2% target in the 2024 fiscal year, according to a Dec. 30 Nikkei report, citing sources familiar with the matter. show

According to the report, this move could lay the groundwork for a shift towards tighter fiscal policy.

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

Retail sales were also higher in Japan, rising for the ninth consecutive month in November.

Darla Mercado

Next week: PMI 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 decline with a reading of 48.

South Korea is also scheduled to release its December trade data at the end of the week, which economists polled by Reuters predict will show a 10.1% drop from a year ago.

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Singapore is expected to release a manufacturing PMI reading 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 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 retail sales on Thursday as well as South Korea’s unemployment rate for December.

– Jihye Lee

CNBC Pro: Wall Street veteran names stocks that could hit $0 — and his picks in tech

2022 marks the end of an era of cheap cash, and that’s bad news for companies with an “at any cost” approach, said David Trainer, CEO of investment research firm New Constructs.

In the coming year, investors will need to be diligent in distinguishing between good and bad companies, he told CNBC Pro.

That is why the US Federal Reserve’s interest rate hike in 2022 “ended the era of super easy money”, and many companies with bad business models have been exposed. He calls those companies “zombie stocks” that burn a lot of cash.

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

CNBC Pro subscribers can read more here.

– Weizhen Tan

Latest market statistics for 2022

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

Dow ended:

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

The S&P 500 ended:

  • decreased by 19.44% for the year
  • increased by 7.08% for the quarter
  • down 5.90% for the month
  • down 0.14% for the week

The Nasdaq Composite finished:

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

The Russell 2000 small caps are finished:

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

– Jesse Pound, Christopher Hayes

CNBC Pro: 2023 looks good for the stock market — especially for one “very interesting” asset class: Fund managers

According to a portfolio manager, the market has bottomed out and things are looking up for stocks and bonds, which could gain more than 10% in 2023.

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

This includes one asset that he said can defeat his peers.

CNBC Pro subscribers can read more here.

– Weizhen Tan

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