Asia-Pacific markets rose after Wall Street saw gains on optimism led by regional banks

An hour ago

CNBC Pro: RBC names 5 global financial stocks to buy right now as banks sell off

Recent share price falls in European financial institutions have presented a buying opportunity, according to RBC Capital Markets.

The investment bank singled out five stocks to buy during the price drop, noting that these financial institutions are not the type to ever face a bank run.

CNBC Pro subscribers can read more here.

– Ganesh Rao

2 hours ago

Shares in Indonesia’s GoTo fell 4.6% as the firm has a wider net loss

GoTo Group shares fell as much as 4.62% in early trading on Tuesday after the Indonesian tech giant posted a wider net loss of 40.4 trillion rupiah ($2.63 billion) in 2022.

The net loss in 2021 came up to 25.9 trillion rupiah.

GoTo has struggled towards profitability, and the management promises further cost cuts during the earnings call for the third quarter in November. The firm had said it expects a “significant part” of the cost cuts, including headcount reductions, to be realized in the first quarter of 2023.

“Looking ahead, the first two months of 2023 show even faster progress, which means we are on track to reach positive adjusted EBITDA during the fourth quarter of 2023,” Andre Soelistyo, GoTo Group CEO, said in a press release .

– Sheila Chiang

2 hours ago

IMF is bullish Sri Lanka’s troubled economy can recover in 2024

The IMF has approved a $3 billion rescue package for Sri Lanka, enabling the South Asian country’s economy to restructure its debt.

Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, told CNBC that Sri Lanka’s economy has “contracted quite sharply” as a result of the economic and humanitarian crisis.

However, the IMF expects “a 3% contraction this year before the economy picks up next year.”

Sri Lanka has been struggling with severe shortages of food, medicine, fuel and electricity since last year. The IMF’s decision will allow an immediate disbursement of a loan of 333 million dollars over four years.

Gabriel Sterne, head of global emerging markets at Oxford Economics, told CNBC in an interview that the IMF’s loan approval is significant for Sri Lanka, which defaulted on its debt last year.

Read the whole story here.

– Sumathi Bala

2 hours ago

Thai shares rise slightly after parliament dissolves, Delta Electronics top performer

Shares in Thailand rose slightly after the country’s parliament was dissolved on Monday, making way for national elections.

The benchmark Set 50 rose 0.76% in early trade on Tuesday, led by electronics exporter and manufacturer Delta Electronics.

Other top performers include PTT, a Thai state-owned oil and gas company, as well as energy supplier Gulf Energy Development.

3 hours ago

Japan says Kishida will visit Ukraine, hold talks with Zelenskyy

Japan’s Ministry of Foreign Affairs confirmed that Prime Minister Fumio Kishida is visiting Ukraine.

“Like the G-7 [chair]Prime Minister Kishida will directly convey our solidarity and unwavering support to Ukraine,” said a statement from the ministry.

Kishida will visit Poland on Wednesday after the trip and return to Japan on Thursday, the ministry said.

Japan’s Prime Minister left India after meeting his counterpart there, Narendra Modi. The two leaders discussed stronger ties between their countries – both democracies – in the face of growing assertiveness by China in the Indo-Pacific region.

Last month, Ukraine’s ambassador to Japan told CNBC he was optimistic Kishida would visit Ukraine before hosting the G-7 summit in Hiroshima in May.

– Jihye Lee

4 hours ago

Moody’s changes UBS’ outlook to negative from stable

Moody’s Investors Services affirmed its ratings on UBS Group AG while changing the outlook for the long-term deposit and senior unsecured ratings from stable to negative.

The move comes after UBS agreed to buy Credit Suisse for $3.2 billion as regulators try to shore up confidence in the global banking system.

“Despite any franchise benefits, Moody’s also notes that the transaction poses significant financial, cultural and franchise-related integration challenges for UBSG,” the note said.

Moody’s listed the need to retain Credit Suisse personnel in the process of the deal, working to minimize the loss of client overlap in businesses and the need to reconcile the two companies’ cultures as challenges UBS will face.

It expressed more optimism for its wealth management business from the deal than its investment banking business.

“Moody’s believes that the acquisition of CSG has the potential to significantly strengthen UBSG’s wealth management, Swiss banking, asset management and, to a lesser extent, investment banking franchises, while targeting a reduction in operating costs of more than $8 billion,” it said.

– Jihye Lee

5 hours ago

South Korea’s February producer price index falls to 4.8%

South Korea’s producer price index for February rose 4.8% from a year earlier, lower than January’s figure of 5.1%.

This puts the index at 120.42, higher than 120.25 in January.

The PPI measures the average movements in the prices received by domestic producers for goods and services sold.

The Korean won weakened 0.25% after the announcement to trade at 1,307.43 per dollar.

— Lim Hui Jie

4 hours ago

New Zealand’s trade deficit narrows marginally to $445 million in February

New Zealand saw its February trade deficit narrow to NZ$714 million ($445 million), marginally lower than the NZ$715 million recorded in the same period a year ago.

Data from the country’s statistics department showed merchandise exports rose 0.8% year-on-year to NZ$5.2 billion, while merchandise imports rose 0.7% to NZ$5.9 billion.

Exports to all of New Zealand’s major export partners mostly increased, except for the EU. China remained the country’s export partner, with exports increasing by 7.1% to NZ$1.5 billion.

However, imports from China saw the biggest drop in February among all of New Zealand’s trading partners, falling 22% to $1.2 billion. Imports from all other major trading partners increased.

The New Zealand dollar gained 0.3% on Tuesday, trading at 0.6227 against the US dollar.

— Lim Hui Jie

6 hours ago

South Korea’s trade falls in the first 20 days of March

South Korea saw an annual drop in exports of 17.4% and a drop of 5.7% in imports in the first 20 days of March, trade ministry data showed.

Exports for the first 20 days of March came in at $30.9 billion, while imports were at $37.3 billion.

Exports to the US increased by 4.6% compared to the same period last year, while exports to China saw the largest drop of 36.2%, followed by Vietnam with a drop of 28.3%.

Imports from China and Taiwan increased by 9.1% and 14.1% respectively, while the largest decrease in imports was seen from Australia with a decrease of 24.7%.

Following the announcement, the Korean won weakened 0.18% to trade at 1,306.72 against the US dollar.

6 hours ago

CNBC Pro: Goldman’s Oppenheimer says stocks will remain ‘fat and flat’ – and reveals how to trade them

Fears of contagion in the banking sector may have subsided with a rescue deal for Credit Suisse, but Goldman Sachs chief global equity strategist Peter Oppenheimer believes stocks are not out of the woods yet.

“Even if markets pull back from current levels in the near term, high uncertainty and reduced confidence levels are likely to mean an ongoing ‘fat and flat’ market given that valuations don’t look particularly attractive,” he said.

Pro subscribers can read more here.

— Zavier Ong

6 hours ago

CNBC Pro: JPMorgan vs. Bank of America? Analysts say one of the stocks is set to rise 50 percent

It is not only regional bank shares that have been affected by the recent banking crisis – major bank shares have also fallen.

But some analysts say the sales are overblown.

Kenny Polcari, market strategist at SlateStone Wealth, described the pullback as “an opportunity for those with a strong stomach,” referring to stocks such as JPMorgan, Bank of America, Citi and Wells Fargo.

For those looking to invest, CNBC Pro takes a look at what analysts are saying about JPMorgan Chase and Bank of America in particular.

CNBC Pro subscribers can read more here.

— Weizhen Tan

6 hours ago

Bill Ackman suggests the Fed should take a break from raising interest rates on Wednesday

Billionaire investor and Pershing Square CEO Bill Ackman said the U.S. Federal Reserve should put rate hikes on hold as the Federal Open Market Committee meeting begins on Tuesday.

Noting that markets have seen “big shocks” with the closure of US banks, Ackman said the banking crisis “remains unresolved” and that higher interest rates will not help the situation.

“This is not an environment there @federalreserve should raise interest rates and add further pressure to the system as financial stability is the Fed’s first responsibility,” he said in his tweet

– Jihye Lee

15 hours ago

Regional bank shares recover after heavy losses

16 hours ago

Oil prices fall amid global banking turmoil

First-month WTI Nymex for April was down 1.45% on Monday, trading at $65.75 a barrel. This level remains above Friday’s low of $65.17, which was the lowest level since December 2, 2021 when WTI traded as low as 62.43

Brent crude oil prices also fell into the red, recently down 0.7%, or to $72.47 a barrel.

—Pia Singh

17 hours ago

Bitcoin rises to nine-month highs as Treasury yields hit six-month lows

Bitcoin climbed to $28,551.73 in early trade, the highest level since June 12, 2022, when bitcoin traded as high as $28,647.91.

Ether hit $1,846.25, the highest level since August 19, 2022, when ether traded as high as $1,879. Coinbase is on its sixth consecutive daily advance.

The moves came as 2- and 10-year Treasury yields fell to six-month lows. The US 2-year yield fell to 3.635%, the lowest since September 13, while the US 10-year yield reached 3.291%, the lowest since September 12.

—Scott Schnipper, Gina Francolla

13 hours ago

Stocks that make the biggest movements of the day

Here are some of the names making the biggest moves in the dinner trade:

  • UBS, Credit Suisse – US-listed shares of Credit Suisse surged nearly 52% after UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion. The UBS share rose around 5%.
  • US Bancorp — Shares rose nearly 6% after being upgraded to outperform from neutral by Baird. The Wall Street firm said US Bancorp could benefit from the banking crisis pushing depositors to shift stakes to larger regional banks.
  • Virgin Orbit— Shares fell more than 35% as the company tried to secure financing and avoid bankruptcy, which could come as early as this week without a deal, according to people familiar with the matter.

To see more stocks making moves in midday trading, read the full story here.

—Michelle Fox

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