Hong Kong-listed Chinese technology companies fell in early session
Shares of Hong Kong-listed Chinese technology companies rose sharply in the first hour of trading.
Tencent rose 7.6%, Meituan 5.9% profit, and Alibaba 9% rose. The Hang Seng Tech Index rose by about 4%.
The move comes despite disappointing activity and retail sales data from China, and after a meeting between US President Joe Biden and Chinese President Xi Jinping ahead of the G-20 summit in Bali.
Safanad’s chief investment strategist said the discussion between the two leaders went “much better” than expected, though he largely chalked it up to low expectations.
Shares of TSMC rose 9% on the news of Berkshire Hathaway’s stake
Shares Taiwan semiconductor manufacturing company It fell behind in the list in Taiwan Berkshire Hathaway 4 billion dollars share of the company was announced.
The stock rose by 9.44% and reached the highest level in two months.
Berkshire added more than 60 million shares of the Taiwanese chipmaker’s US depositary receipts, worth $4.1 billion (1.2%) TSM) at the end of the third quarter, Taiwan Semi becomes the 10th largest conglomerate at the end of September.
The stock was last up around 8%.
China’s industrial production, retail sales miss expectations in October
China’s industrial output grew 5% in October from a year earlier, down from the 6.3% increase seen in September. The latest figure misses estimates of a 5.2% increase predicted in a Reuters poll.
Separately, retail sales in China fell 0.5% in October from a year earlier, missing expectations.
Analysts polled by Reuters expected a 1% increase, and retail sales grew 2.5% in September.
– Abigail Ng
CNBC Pro: Top Morningstar strategist says stocks are 15% undervalued and shares 6 picks
According to Morningstar, with many stocks in a bear market, stocks can drop as much as 15 percent.
The chief strategist of the US legal research firm believes that the losses that existed at the beginning of the year will begin to reverse and take advantage at the beginning of next year.
Dave Sekera also shared his “fair value” rating on six companies with “broad financial performance” that will further improve in such an economic environment.
CNBC Pro subscribers can read more here.
– Ganesh Rao
The Central Bank of Australia is hinting at an interest rate hike ahead
The Reserve Bank of Australia has focused on more and possibly bigger interest rate hikes in its efforts to ease inflationary pressures, according to details released from its latest meeting.
“The board agreed on the importance of returning inflation to the target and expects interest rates to rise further in the period ahead,” it said in a statement.
The central bank had considered raising its interest rates by 50 basis points, but found a stronger case to raise the rate by 25 basis points, it said.
The higher interest rates will be part of broader efforts to “establish a sustainable balance of demand and supply in the Australian economy”, the RBA said, adding that members did not rule out the possibility of returning to larger hikes if necessary.
– Jihye Lee
Japan’s economy contracted unexpectedly in the third quarter, data show
Japan’s economy shrank unexpectedly in the third quarter from a year ago, preliminary official estimates showed.
Gross domestic product decreased by 1.2 percent in the July-September quarter compared to the same period last year, missing growth estimates of 1.1% in a Reuters poll.
– Abigail Ng
CNBC Pro: China is easing its Covid measures. Here’s how marketers play it
Which stocks could benefit if China reverses its zero-Covid policy? Market experts reveal how the opening has played out as China eases some of its virus controls.
Pro subscribers can read more here.
– Zavier Ong
Brainard’s comments are part of the lows of the session
The S&P 500 bounced back from lows and Treasuries eased slightly from late-morning gains after Federal Reserve Vice Chairman Lael Brainard said it may be “soon” appropriate to slow the pace of interest rate hikes, in an interview with Bloomberg News.
The S&P 500 was last down just 0.1% after rising 0.7% on Monday. The 10-year Treasury yield was 5 basis points higher at 3.878% after trading as high as 3.90% earlier.
“I think what’s really important to emphasize is that we’ve done a lot, but we still have more work to do, both on raising rates and on the continued suspension, to bring inflation down over time. 2,” Brainard added.
– John Melloy, Jeff Cox
Fed Waller’s message to markets: Rate endpoint ‘still a ways away’
Fed Governor Christopher Waller said that, although the central bank could raise rates quickly next month, this should not be interpreted as a sign of easing in its fight to reduce inflation.
“Stop listening to the rush and start listening to where the endpoint is going to be. Until we get inflation down, that endpoint is still a ways off,” Waller said on Sunday.
Earlier this month, the Fed raised rates by 75 basis points to the highest level since 2008.
– Fred Imbert
