Asia-Pacific markets mostly fall as investors digest Chinese economic data

Goldman Sachs: China’s ‘exit wave’ on reopening is taking a toll on the economy

China’s “exit wave” during the reopening process has dragged down the economy significantly, Goldman Sachs economists said in a report.

“The ongoing ‘exit wave’ on the back of China’s faster-than-expected reopening has taken a heavy toll on economic activity in recent months, due to rising infections, a temporary labor shortage and supply chain disruptions,” a report said. .

“It is very surprising in our view that the reported figures for December were not worse,”[ads1]; the economists said.

– Jihye Lee

Credit Suisse says iron ore prices will peak at around $130 to $140 this year

Iron ore prices are forecast to be around $130 to $140 as traders keep China’s reopening in focus, Credit Suisse’s head of energy and resources research Saul Kavonic said.

“We expect $130 to $140 to be where prices end up and peak this year,” he said.

While the past few weeks of iron ore demand are bolstered by speculative and holiday buying, he said markets are currently watching how China’s reopening plays out and the rollout of any infrastructure stimulus.

He said these measures will “sustain demand for iron ore during this year well into next year.”

Australia’s mining giant Rio Tinto published its fourth-quarter production results that slightly beat estimates.

β€œThe real focus [of] “Rio has been on iron ore, which has supported the whole sector in recent months, which has been a conversation that has finally come to fruition at the end of last year and early this year,” he said.

Rio TintoThe shares last traded down 1.11 percent.

– Lee Ying Shan

China’s retail sales beat estimates, economy grows more than expected

China’s December retail sales beat estimates, falling just 1.8% year-on-year, significantly better than the 8.6% decline forecast in a Reuters poll.

Industrial production also grew by 1.3% in December, higher than expectations for a 0.2% increase.

In the fourth quarter, China’s economy expanded by 2.9% year-on-year, better than expected growth of 1.8%. While quarterly growth was flat, it still beat expectations for a 0.8% decline.

Despite better-than-expected data, the Chinese offshore yuan weakened sharply from 6.7403 to 6.7563 against the US dollar shortly after the release.

Alibaba shares rise after Ryan Cohen is said to have taken shares in the company

Shares in Alibaba rose after the Wall Street Journal reported that Ryan Cohen was building a stake in the company “worth hundreds of millions of dollars.”

Cohen, who founded online pet retailer Chewy and is also chairman of GameStop, is privately pushing Alibaba to accelerate and further increase its stock buyback program, the Journal report said.

Hong Kong-listed shares of Alibaba rose 2% in the first hour of trading. The stock has since reduced the rise to trade roughly flat.

– Jihye Lee

China’s Liu He will meet US Treasury Secretary Janet Yellen

US Treasury Secretary Janet Yellen is scheduled to hold a meeting with China’s Vice Premier Liu He on the sidelines of the World Economic Forum, China’s Ministry of Commerce said in a statement.

The two will hold a meeting to “strengthen macroeconomic and fiscal policy coordination,” the ministry said.

The meeting will take place in Zurich on January 18, according to the statement, adding that the two will discuss the implementation of the agreements reached between US President Joe Biden and Chinese President Xi Jinping late last year in Bali, Indonesia.

The sit-in will mark the first face-to-face meeting between Yellen and Liu.

Separately, Politico reported that US Secretary of State Antony Blinken will meet newly appointed Chinese Foreign Minister Qin Gang in Beijing on 5-6. February, citing Washington-based diplomats familiar with the matter.

– Jihye Lee

Singapore’s non-oil domestic exports fall more than 20% in December

Singapore’s non-oil domestic exports fell 20.6% in December year-on-year, a further drop from a 14.7% decline in November.

The sharp decline was mainly driven by exports to China, Indonesia and Hong Kong, according to the authorities’ announcement. Exports to South Korea and Japan increased, it says.

The nation’s total trade fell 7.7% in the month of December compared to a year ago – with exports falling 7.1% and imports also falling 8.2%.

– Ji Hye Lee

CNBC Pro: This under-the-radar global carbon capture stock could rise 65%, investment banks say

Shares of an under-the-radar carbon capture company are expected to rise 65% on rising global demand for emissions reduction technology, according to investment banks that analyze the stock.

The company’s latest innovation, revealed last week, could cut the energy needed to capture carbon and improve the company’s profitability in the future, according to analysts at a German investment bank.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Where the major indexes stand, the first two weeks of 2023 trading will come

With the first two weeks of 2023 trading complete, the three major indexes are up so far for the year.

The Nasdaq Composite leads the way, adding 5.9% as investors bought depressed tech stocks on rising hopes of a better landscape for growth stocks. The S&P 500 and Dow followed, increasing 4.2% and 3.5% respectively.

– Alex Harring

Stock futures open lower

Equity futures were lower despite the market coming off a winning week.

Futures linked to the Dow fell 0.1%. S&P 500 and Nasdaq-100 futures fell 0.2% and 0.4%, respectively.

– Alex Harring

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