Asia-Pacific shares, China, yuan, Bank of Japan, Hang Seng index

South Korea was expected to see further declines in exports and imports

South Korea’s export growth in December is expected to mark a third straight month of annual decline, according to economists polled by Reuters.

Average forecasts predict exports fell 10.1% on an annual basis in December – a slight improvement after seeing a 14% drop in November, when it saw the biggest contraction since May 2020.

Economists forecast the country’s import growth to fall 0.6 percent in December, resulting in a trade deficit of about $6.7 billion.

South Korea is scheduled to release its trade data on January 1.

– Lee Ying Shan

Nio shares fall after cutting fourth-quarter delivery outlook

Hong Kong shares of Chinese EV maker Nio fell 9.11% in Asian trading hours after the company lowered its fourth-quarter delivery outlook, citing supply chain disruptions from Covid outbreaks in major Chinese cities.

The company now expects to deliver between 38,500 and 39,500 vehicles, compared to its initial forecast of 43,000 to 48,000 vehicles, according to updated delivery guidance.

Its New York-listed shares fell 8 percent in U.S. trading hours.

– Rebecca Picciotto, Lee Ying Shan

The Bank of Japan says adjusting the yield curve does not mean changing monetary policy

The Bank of Japan reiterated that its latest decision to widen its monetary policy tolerance range does not mean a change in the course of monetary policy, according to the Summary of Opinions from its December meeting.

“The widening of the range of fluctuations in the 10-year JFB yield from the target level is not intended to change the direction of monetary easing,” it said.

“It is a policy measure to make the current monetary easing … more sustainable,” she added.

The Bank of Japan added that the assessment of the 2% inflation target is “not appropriate.”

“Variation of that rate is not appropriate because it could obscure the target and make the monetary policy response inappropriate,” she said.

– Jihye Lee

Tesla’s Asian suppliers are down after production halted at the Shanghai factory

Shares of Tesla’s suppliers in Asia fell as production at the company’s Shanghai factory was reportedly halted after a wave of Covid infections was seen among its Chinese workers.

South Korea’s LG Chem fell by 3.66 percent and Japan’s also fell Panasonic It lost 0.31% in early Asian trade. Shares of Contemporary Amperex Technology, also known as CATL, fell 3.39%.

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– Jihye Lee

Oil prices are supported by the opening of China and Moscow’s decision to ban the sale of oil

Oil prices rose on the back of a potential increase in demand caused by China’s new opening, as well as Moscow’s announcement of a ban on oil sales for participating countries in the price of Russian crude oil, led by the US.

Brent crude oil rose 0.2 percent to $84.50 a barrel, West Texas Intermediate rose 0.19 percent to $79.70 a barrel.

According to the decree of Russian President Vladimir Putin, published on the Kremlin portal, Moscow said that the imposed ban “applies to all stages of sales up to and including the final buyer.”

– Lee Ying Shan

The United States is imposing new rules for travelers from China

The US government is considering imposing new Covid rules on travelers from China, officials said.

“There is growing concern in the international community about the continued rise of COVID-19 in China and the lack of clear data, including genomic sequence data of the virus, being reported from the PRC,” the officials said.

Separately, Japan announced on Tuesday that it will require a negative Covid test for visitors from China starting December 30.

Read the full story here.

– Jihye Lee

Hong Kong’s reopening stocks rise on China’s reopening measures

China’s factory activity is expected to contract for the third straight month

China’s official Purchasing Managers’ Index of manufacturing for December is expected to hit 48 on Saturday, below the 50-point mark that separates growth from contraction.

Analysts polled by Reuters expected the reading to be unchanged from the November reading published by the Bureau of National Statistics.

PMI readings are conservative and represent month-to-month changes in factory activity.

– Lee Ying Shan

Tesla extends production shutdown at Shanghai plant: Wall Street Journal

Tesla halted production at a factory in Shanghai on Saturday after an outbreak of Covid among its employees at the facility, the Wall Street Journal reported.

The decision comes as an extension of a planned eight-day production shutdown, according to the report. The electric vehicle maker had informed employees that production would resume on January 2, she said.

Tesla The stock was down 11% in late trading and further down in after-hours trading.

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– Lee Ying Shan, Alex Harring

Platinum on pace for best quarter since 2009

Platinum It’s on track for its best quarter since 2009 — and metal-related stocks are also posting strong performances.

Compared to the beginning of the quarter, the metal increases by 19.86 percent. That’s the best performance platinum has seen since the first quarter of 2009, when it gained 19.89%.

If platinum surpasses this quarter, it will be the best quarter since the first quarter of 2008.

Platinum-related companies are on the rise. In this case, Impala Platinum plus 31.7%. Anglo American Platinum and Sibanye Stillwater followed by 21% and 17.6% in the same period.

The Platinum Investment Group attributed some of the price increase to physical stocks of the metal being exported to China, which it found elsewhere.

– Alex Harring, Gina Francolla

Oil hits three-week high as investors cheer China’s quarantine changes

Oil prices rose to a three-week high as investors held hopes of a recovery in demand on the latest news of China’s easing of Covid restrictions.

Brent oil By 1.55 dollars, that is 1.9%, it became 85.47 dollars per barrel. US West Texas Crude Oil It added $1.37, or 1.7%, to $80.93.

Both hit highs not seen in intraday trading since December 5. China’s National Health Commission said Monday that it will stop requiring travelers coming into the country for quarantine, a move seen by investors as a key step in easing Covid-19 restrictions that have disrupted global supply chains and travel.

China-related stocks rise as the country eases restrictions

Shares of Chinese companies trading on US exchanges rallied as the country eased Covid restrictions. China has announced that it plans to lift quarantine requirements for travelers starting January 8.

Alibaba shares gained 1.5%, while JD.com and Pinduoduo each rose 2%.

China ETFs also gained, with the KraneShares CSI China Internet ETF up 2.7% in the race, on pace for its first gain in three sessions. iShares China Large-Cap and iShares China Large-Cap each added 2%.

In the news, casino stocks related to Macau were also removed from competition. Las Vegas Sands was last up 1.4%, while Wynn and Melco Resorts rose 2.5% and 4.2%, respectively.

– Samantha Subin

GMO says international and emerging market stocks are set to return the most in the next 7 years

International stocks, but especially emerging market stocks – and especially emerging market value stocks – are the most likely to outperform large and small-cap stocks in the United States over the next seven years, according to the latest monthly forecast from Grantham. offers Mayo Van Otterloo & Co.

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Emerging market value stocks are expected to return exactly 9% per year over the next seven years, while emerging market stocks are expected to return 5.2% per year as a whole. International small-cap stocks are expected to return 4.5% real while large-cap international stocks are expected to return 2.4% in a year, after inflation.

The U.S. is expected to continue, with U.S. small-caps projected to decline 1.4% annually after inflation, and U.S. large-caps projected to decline 1.8% annually over seven years.

Similarly, emerging market debt is likely to finish as the best performing fixed income class, returning 3.5% real annually, followed by US Treasuries at +0.8%, US inflation-linked bonds in 0.3%. International bonds hedged against currency exposure are expected to lose 1.8% per year and US bonds to return -0.3%.

As stocks crashed in 2022, valuations improved and the outlook for future returns brightened. As of early 2022, GMO has projected emerging market value stocks to return +5% annually over seven years, emerging market stocks +2.2%, international small caps -1.2%, international large caps – 2.5%, US small caps -6.5% and US large caps -7.3%.

U.S. Treasuries are expected to lose the least amount of money at the start of the year, down 1.1% a year after inflation appears over the next seven years, followed by emerging market debt at -1.7%, inflation-linked bonds. of the United States (- 3.7 %), US bonds (-4.1 %) and international covered bonds (-4.7 %).

– Scott Schnipper

Treasury yields are rising

Bond yields rose on Tuesday, putting pressure on growth stocks like technology.

Product on 10-year Treasury The latest note increased by 11 basis points to 3.854%. that one 2-year Treasury The yield rose 8 basis points and last traded at 4,402%.

Productivity and value have an inverse relationship. One basis point is equal to 0.01%.

The tech-heavy Nasdaq Composite, which is more sensitive to movements in rates, was last down 1.2%.

– Samantha Subin

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