Hong Kong stocks trade nearly 4% higher as China’s Covid briefing underway

Pinpoint Asset Management expects a positive message to be delivered in China’s Covid brief

China's government did not take the Covid protests negatively, economist says

China’s state legislature is expected to deliver a positive message at an upcoming Covid press conference, but the announcement won’t make a “major impact”, said Pinpoint Asset Management Chairman Zhiwei Zhang.

“I think the message will be really positive … there are a lot of positive signals coming from the central and local governments,” said Zhang, who cited examples such as the government allowing residential complexes to open in Beijing.

However, he warned that reopening would be a “long process” until March next year, saying “the medical system may not be able to support the transition” especially for the fast-moving winter season.

– Lee Ying Shan

Currency control: Asia-Pacific currencies are strengthening sharply, led by the Chinese yuan

Both the onshore and offshore Chinese yuan strengthened against the dollar in the Asian session ahead of a press conference on Covid measures.

The greenback lost 1.09% against the yuan and 0.65% against the yuan sea ​​yuan, with both trading around the 7.16-level. The offshore yuan traded at $7.24 before strengthening sharply.

Other Asia-Pacific currencies also rose against the dollar. that one Australian dollar to $0.6701 after rising from around the $0.66 level, and Korean win It was 1,326.79 per dollar, compared to around 1,340 on Tuesday.

– Abigail Ng

Chinese indices rise ahead of Covid brief

Indexes in China rose more than 2% as investors closely watched developments in the nation’s zero-Covid policy after seeing losses in the previous session.

China’s CSI 300 index rose 2.97% in the morning session, while it rose 2.97% Shanghai Composite 2.2% rose. that one Shenzhen section The index increased by 2,172%.

Local media reported that the Chinese State Council will hold a press conference on Covid measures at 3pm local time, or 2am ET.

The country saw a decrease in the number of daily infections for the first time in more than a week.

– Evelyn Cheng, Jihye Lee

China’s Xi will likely continue to be “very pragmatic”, despite Covid policy, strategist says.

Chinese President Xi Jinping has been realistic and practical on Covid, real estate issues and domestic politics since the end of the National Congress of the Communist Party of China, said Andy Rothman, investment strategist at Matthews Asia.

“He’s being pragmatic on Covid policy, announcing a change in direction more towards living with Covid than Covid zero,” he said on CNBC’s “Squawk Box Asia” when asked how the government may be in response to recent unrest in parts of China.

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“He’s been pragmatic on the property, he’s been very pragmatic in dealing with Joe Biden, so I hope that continues,” Rothman said.

He added that he sees the objections related to the extended zero-Covid policies as largely in line with what is expected from the Chinese government.

“What the protesters seem to be demanding is what Xi Jinping has already said he wants to deliver,” he said. “He wants to deliver a path from zero tolerance to Covid, to living with Covid like the rest of the world.”

Rothman added that the latest announcements to ease quarantine measures for international travelers indicate that the delivery of changes from the zero-Covid policy will be “relatively easier.”

“He doesn’t back down, [or] under pressure, he’s just delivering at a faster pace what he’s told these students he wants to give them,” he said.

– Abigail Ng

Before the meeting in China, the price of oil increases by more than one dollar

Oil prices rose ahead of a news conference to be held by China’s State Council, as investors continued to monitor developments – some losses were seen on Monday, when it hit its lowest level in almost a year.

West Texas Intermediate crude rose 1.76 percent to $78.59 a barrel, while Brent crude rose 2.28 percent to $85.00 a barrel.

However, oil markets may have “misjudged news of China’s lockdown,” Rstad Energy wrote in a note.

“[The latest lockdowns’] “The impact on China’s short-term oil demand, particularly in transportation, is likely to be minimal,” the note added, citing the company’s research on actual traffic activity in China.

Even as daily cases of Covid continue to rise, cities like Shanghai have not shown a slowdown in road traffic activity, according to Rstad Energy’s own research.

– Lee Ying Shan

China may not make sudden changes to its Covid policy: National University of Singapore

The Chinese government is unlikely to make sudden changes to its zero-Covid policy because it will bring chaos, National University of Singapore Professor Wang Gungwu said on CNBC’s “Squawk Box Asia.”

“If you change the policy suddenly, I think the damage and consequences will be even worse – it will be really chaotic because I think the spread of Covid will be absolutely unprecedented,” said Wang.

He added that he expects Chinese leader Xi Jinping to make more adjustments at local levels to ease public discontent.

Wang said Xi does not want to officially admit “the policy has been wrong for a long time”, but also cannot change it immediately.

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– Jihye Lee

Hong Kong-listed property stocks rise after China changes fundraising rules

Equities related to Hong Kong-listed property developers rose after China’s regulator announced it would lift a ban on fundraising for the sector.

The China Securities Regulatory Commission announced five support measures for the real estate market, including the lifting of a multi-year restriction on property developers selling stocks to raise cash.

Cifi Holdings Group rose 13.01% in the first hour of trading, Country garden also increased by 13.36% The Logan Group rose to 10.23% and The Longfor Group Earned 9.88%.

– Jihye Lee

Hong Kong had its best month since April 1999

of Hong Kong Hang Seng Index leading its best month since April 1999, when the index gained 21.85%.

The index rose more than 3% as of Tuesday morning, and was up 22% for November, according to Refinitiv data.

The HSI closed 1.57% lower on Monday, its worst day in a week, while the Hang Seng lost 1.87% on November 21.

Gina Francolla, Jihye Lee

Japan’s unemployment rate is unchanged, retail sales miss estimates

According to official data, Japan’s unemployment rate was steady in October from September’s reading of 2.6%. The figure is slightly higher than the average expectation of 2.5% among economists polled by Reuters.

The job-to-applicant ratio, which measures active job openings per worker, was at 1.35. This shows that there are 135 jobs for every 100 applicants, which is still a tight labor market in Japan.

The nation’s retail sales rose 4.3% on an annual basis in October, missing expectations of a 5% increase predicted in a separate Reuters poll.

The latest reading marks the first moderation in retail sales growth seen since June this year.

Jihye Lee

Bullard says the Fed should continue to hike next year

James Bullard in Jackson Hole, Wyoming.

David A. Grogan | CNBC

President of St.

“We have to continue to raise our interest rate in 2023, and there is some risk that we will have to go higher than that. [5%]Bullard said in a Barron’s Live webinar.

Bullard sent shockwaves through financial markets earlier this month when he said the Fed’s hikes have so far had “only limited effects” on inflation and that the key interest rate may rise to between 5% and 7%.

Bullard, who is a voting member of the FOMC, said the Fed would need to hold off on any rate cuts next year, even if the inflation picture starts to show a steady improvement.

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“I think we’re probably going to stay there through 2023 and into 2024, given the historical movement of core PCE inflation or the Dallas Fed cut-off average inflation. They’re going to come down, I think. That’s my main point. But maybe they will.” As fast as the markets want and maybe the Fed wants,” Bullard said.

– Jesse Pound

CNBC Pro: Wealth manager names 9 ‘cheap’ stocks to buy as recession fears grow

It’s “critical” for investors to look at valuations now because a recession is looming and inflation looks set to continue, said Steven Glass, managing director of Pella Funds.

In this environment, Glass selected a list of nine stocks that he said, “look particularly cheap given their growth outlook.”

CNBC Pro subscribers can read more here.

– Weizhen Tan

Crypto prices fall but quickly bounce back after BlockFi declares bankruptcy

The price of bitcoin fell on Monday after BlockFi officially announced that it has filed for Chapter 11 bankruptcy following the bankruptcy of FTX.

Bitcoin briefly fell to around $16,000 but has since recovered. According to Coin Metrics, it was last down just 1% at $16,300. The action in the price of ether showed a similar reaction.

BlockFi has been in bad shape since the spring, after the explosion of the Terra project that led to the collapse of Three Arrows Capital. At the time, the company accepted a bailout from FTX that would help it avoid bankruptcy. Of course, FTX is now going through bankruptcy.

– Tanaya Macheel

CNBC Pro: Goldman Sachs names global automakers exposed to China slowdown

According to Goldman Sachs, many global companies have a strong presence in China, including some of the world’s largest automakers, which generate between 20% and 40% of their global sales in the country.

In a note to clients on Nov. 22 — ahead of the latest protests — the investment bank outlined the global auto industry’s exposure to Chinese consumers.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Stocks are lower in Monday’s session

After a successful Thanksgiving week, the three major indexes ended Monday as investors sold off amid heightened concerns about supply chain disruptions amid Covid-related protests in China.

that one Dow Jones Industrial Average It lost 1.45%, or 497.57 points, and closed at 33,849.46. that one S&P 500 at the same time it fell 1.54% and ended at 3,963.94. that one Nasdaq Composite It fell 1.58% and ended at 11,049.50.

– Alex Harring

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