China Covid relaxation, Hong Kong stocks rise

Indonesia’s GoTo has lost nearly 70% of its value since its IPO in April

Indonesia’s GoTo Group — the merger of ride-hailing giant Gojek and e-commerce marketplace Tokopedia — has lost 68.5% of its initial valuation of 400 trillion rupiah ($28 billion) since its initial public offering in April.

On Thursday, pre-IPO shareholders such as Alibaba and SoftBank opted out of a second offering after the lock-up ended on November 30, causing the stock price to drop 7%.

The companies had agreed on an eight-month lock-up period to support GoTo’s stock price following its IPO as initial shareholders.

Its share price continued to rise in Monday’s session, valuing the company at about 126 trillion rupiah, according to CNBC calculations. GoTo’s shares plunged in a year, losing 68% of their value.

– Sheila Chiang

Australia expects to raise rates by 25 basis points: Reuters poll

Australia’s central bank is expected to raise its cash rate by 25 basis points to 3.1% on Tuesday, according to economists polled by Reuters.

It would be the Reserve Bank of Australia’s eighth hike this year, and the third consecutive hike of 25 basis points since October.

In a statement after its November meeting, the RBA said the “full impact” of a series of interest rate hikes was ahead.

Meanwhile, Matt Simpson, senior market analyst at City Index, said there was potential for a rate hike to stop ahead.

“There’s definitely a case for stopping,” he said. “Some measures of inflation expectations are falling, and the monthly inflation print indicates that inflation is peaking.”

Inflation in Australia remains well above the RBA’s target of between 2% and 3%, although it eased slightly in October, according to the central bank’s monthly consumer price index.

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– Charmaine Jacob

Morgan Stanley upgrades China stocks to overweight

Strategists at Morgan Stanley have raised their recommendation for Chinese stocks to overweight, according to a Sunday note.

The update marks the end of the firm’s equally weighted stance on Chinese assets that has lasted nearly two years, strategists led by Laura Wang said.

Morgan Stanley points to several factors that see “meaningful positive development” since November, including what the company sees as “an acceptable path to the final post-Covid recovery.”

– Michael Bloom, Jihye Lee

Hong Kong moves: Chinese tech companies and stock reopening are on the rise

Chinese technology, consumer and travel-related companies listed in Hong Kong saw sharp gains in early trade after some Chinese cities saw some easing of Covid restrictions.

Tech heavyweight Tencent gained 5.5 percent and Meituan rose 3.5 percent, while Alibaba rose 4.72 percent and Xiaomi rose 7.31 percent. EV stocks such as Li Auto rose 9.19% and Nio rose 11.5%.

Meanwhile, casino stocks in Hong Kong also climbed, with MGM China up 12.44%, Wynn Macau up 12.35% and Sands China up 7.5%. Galaxy Entertainment rose to 3.61% and SJM Holdings It rose 4.82%.

Hotpot restaurant operator Haidilao It rose 15%, and airline shares rose as well. China Southern Airlines and China Eastern Airlines each rose more than 5%, while Air China 4% profit.

The broader Hang Seng index increased by 3.21 percent.

– Abigail Ng, Jihye Lee

China’s business activity index is the lowest in six months, a private study shows

The Caixin/S&P Global Services Purchasing Managers’ Index rose to 46.7 in November, represents the minimum study in six months.

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The print also showed a third straight month of declines in output and new business, after October’s reading was 48.4, while September’s print was 49.3.

PMI readings are conservative and represent month-to-month changes in factory activity. The 50-point mark separates growth from contraction.

“The rate of decline was solid overall, but remained weaker than the previous large wave of Covid-19 cases from March to May,” Caixin said in a statement.

“Efforts to contain the spread of Covid-19 amid a dramatic increase in case numbers in recent weeks weighed on business operations in the service sector and consumer demand across China in November,” it added.

China’s official non-manufacturing PMI released last week stood at 46.7, the lowest since April 2022.

– Abigail Ng

Chinese Yuan strengthens on opening expectations

The Chinese currency strengthened around 7 against the US dollar following the latest reports that signaled further easing of China’s Covid policies.

The offshore yuan traded at 6.9861 against the greenback, strengthening past the 7-level for the first time since mid-September.

Beijing and Shenzhen are taking steps to relax testing requirements and quarantine rules even as the daily case count hovers near an all-time high.

The latest moves come nearly a week after public protests over strict measures erupted in various parts of the country.

– Jihye Lee

Oil futures are up 2% after OPEC+ holds steady and China eases some Covid restrictions.

Chinese markets to halt trading for 3 minutes on Tuesday as nation mourns former president

CNBC Pro: Fund manager names two global retailers ‘on dominance’

A veteran Schroders fund manager has named two global retailers that ‘dominate’ their sector.

Andrew Brough, who runs the Schroder UK Mid Cap Fund, said the two conservatively managed companies were quietly gaining market share at the expense of failing rivals.

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One of those stocks is up 30% this year, while its benchmark index is down 29%.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Stock futures fall, bond yields rise on the back of warmer-than-expected jobs data

Stock futures fell while bond yields rose in response to 8:30 a.m. jobs data that was stronger than economists had expected.

Here’s how each major index futures and benchmark bond yields fare in the 30 minutes leading up to the data release:

CNBC Pro: Goldman Sachs updates this global tech boom, saying the stock could rise as much as 90%

Goldman Sachs sees one opportunity in electric vehicles that is on a “higher trend.”

The trend will gain momentum as EVs become “more technologically advanced” and easier to manufacture, Goldman analysts said in a Dec. 1 report.

Goldman said this has benefited him, making up to 90% upside in his pipeline case for the company.

CNBC Pro subscribers can read more here.

– Weizhen Tan

U.S. payrolls rose 263,000 in November

Despite the Federal Reserve’s efforts to cool the labor market, job growth was stronger than expected in November.

Nonfarm payrolls rose by 263,000 last month while the unemployment rate was unchanged at 3.7%, according to the Labor Department on Friday.

Payroll numbers are expected to increase by another 200,000 jobs, according to Dow Jones consensus estimates. The unemployment rate is expected to remain at 3.7%.

Stock futures fell after the earnings release.

– Sarah Min


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