Hong Kong stocks volatile, Asia markets mixed; China PMI shrinks into contraction

Hong Kong-listed Macao gaming stocks pared losses after an update on visa policy for mainland Chinese residents wishing to visit Macao.

China’s Immigration Bureau said in a statement on WeChat that mainland residents can visit the gaming center through the online visa system starting November 1. It is expected that this move will increase the number of tourists to Macao.

MGM China shares gained 2.89 percent Wynn Macau rose 4.92%, Galaxy Entertainment shares rose 2.98 percent. Sands of China shares also increased by 4.49%. Likewise, SJM Holdings by more than 4%.

Whipsaw in gaming stocks came after seeing a sharp fall earlier following lockdown warnings in areas surrounding a worker’s residence in MGM China‘s casino Cotai that tested positive for Covid on Sunday.

– Lee Ying Shan

US Secretary of State Antony Blinken spoke with Chinese Foreign Minister Wang Yi and discussed “the need to maintain open lines of communication,” according to a State Department statement.

Blinken said he also discussed managing the U.S.-China rivalry “responsibly,” without elaborating.

The State Department said Blinken discussed Russia’s war on Ukraine and the “threats it poses to global security and economic stability,” in a statement.

– Jihye Lee

that one US dollar According to Wells Fargo, rate differentials are expected to strengthen further as central banks around the world take a “less hawkish” tone.

FX strategist Brendan McKenna said on CNBC’s “Squawk Box Asia,” “We’re starting to see some foreign central banks … turn a little bit on the dovish side,” as the Federal Reserve maintains its hawkish stance.

McKenna said he expects the dollar’s strengthening to continue “at least” into the first quarter of next year.

– Jihye Lee

Australian retail sales rose 0.6% in September from August, official data showed, in line with expectations in a Reuters poll and at the same pace as reported in the previous monthly period.

Sales of clothing, footwear and personal goods were up 2%, while coffee shops, restaurants and takeaways were up 1.3%.

The nation’s sales figures are released on Friday, and ANZ Research expects quarterly growth of 0.4%.

“This will represent the slowest growth since Covid but is still solid for household spending due to a shift from retail to services,” ANZ Research said in a tweet.

– Abigail Ng

Goldman Sachs economists expect the Federal Reserve funds rate to rise to 5%, after increasing their forecast for the central bank to hike by 75 basis points at this week’s meeting.

Economists led by Jan Hatzius said in a note Saturday that they are adding another 25 basis points to their forecasts — now calling for a 50 bps hike in December, a 25 bps hike in February, and a 25 bps hike in March.

“Inflation is likely to remain uncomfortably high for some time, with continued increases in small steps likely to be the path of least resistance,” the note said.

– Jihye Lee

Hong Kong-listed Macao gaming stocks fell sharply in early trade after an employee MGM ChinaAccording to a government release, the Cotai casino has tested positive for Covid.

Several areas related to the case have been placed under lockdown, another statement said, with the measures expected to be lifted between November 3-5.

Shares of MGM China fell 2.89% Wynn Macau 2.62% down Galaxy Entertainment shares fell 1.85%. Sands of China Last year it decreased by 2.29%. SJM Holdings also decreased by more than 3%.

China’s factory activity slowed in October compared to September, according to data from the National Bureau of Statistics.

The official Manufacturing Purchasing Managers’ Index print reached 49.2, missing expectations for a reading of 50 – the indicator that separates monthly growth from contraction.

In September, the PMI reading stood at 50.1.

China’s official non-manufacturing PMI came in at 48.7, compared to a print of 50.6 in September.

– Abigail Ng

Japan’s industrial production fell 1.6% in September from August, government data showed – beat expectations for a 1% drop in a Reuters poll, ending a three-month streak of growth.

The decline was led by motor vehicles, chemicals and manufacturing machinery, the statement said.

A government survey that forecasts industrial production numbers predicts a decline in October, while seeing an increase in November.

– Jihye Lee

Stocks around the world have sold off this year on fears of a recession and rising inflation – and now look cheap.

Analysts say there may be buying opportunities in some stocks that they expect to rally.

To find those stocks, CNBC Pro crunched the names under the MSCI World index that meet a number of criteria.

CNBC Pro subscribers can read more here.

– Weizhen Tan

Japan yen In Asian morning trade, it weakened to 148 against the US dollar for the first time since last Wednesday.

The move comes ahead of this week’s Fed policy meeting, where the central bank is expected to raise rates by 75 basis points, further widening the rate differential between the US and Japan.

The Japanese yen strengthened slightly to 146 last week ahead of the Bank of Japan’s monetary decision to keep rates steady, before retreating to 148 against the greenback.

Last time every dollar was 148.23.

– Abigail Ng

China’s official Purchasing Managers’ Index for October was flat from September, according to a Reuters poll.

The reading is expected to reach 50, the point that separates growth from contraction. PMI prints compare activity from month to month.

In September, the economy posted a PMI reading of 50.1.

– Abigail Ng

Wall Street will be closely watching the Federal Reserve’s announcement this week for signs that the central bank will ease the pace of rate hikes.

According to the CME FedWatch tool, traders believe there is an 80% chance the Fed will hike by three-quarters of a point on Wednesday.

That would bring the central bank’s target rate between 3.75% and 4%.

Beyond that, however, the market looks more opaque. There is only a 44% chance of another increase of that size in December.

– Jesse Pound