Asia Pacific Markets, Trade Data, Bank of Japan
Toyota’s CEO is stepping down from his position with effect from 1 April
Toyota Motor Corporation President and CEO Akio Toyoda will step down from his post on April 1, to be replaced by current Chief Branding Officer Koji Sato, the Japanese automaker said.
Toyoda will become the new chairman, while current chairman Takeshi Uchiyamada will continue as a board member.
“I thought the best way to advance Toyoda’s transformation would be for me to become chairman in support of a new president, and this has led to today’s decision,” Toyoda said in a webcast.
Tokyo-listed shares of Toyota ended the session 0.63% lower on Thursday before the announcement.
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Hyundai has a fantastic profit in the fourth quarter
Hyundai Motor posted net income of 1.71 trillion won ($1.4 billion) for the fourth quarter ended in December, up 143.8% year-on-year.
Despite the stellar results, the reading was still shy of Refinitiv’s forecast of 2.5 trillion won in net profit.
The figure also marks a growth of 21.1% compared to the previous quarter which ended in September.
The automaker’s sports utility vehicle (SUV) sales were a major contributor to the results, and Hyundai expects “strong sales of high-end models to continue.”
The company’s shares last traded up 6.04% on Thursday.
– Lee Ying Shan
Singapore factory output contracted 3.1%, extending the decline since October
Singapore’s annual manufacturing output for December fell 3.1%, beating Reuters expectations for a 6.9% plunge.
The measurement marks the third consecutive decline since October, and follows November’s figure of a 3.2% decline.
On a month-on-month basis, Singapore’s manufacturing data rose 3.2%, compared with a 1.2% decline the previous month.
– Lee Ying Shan
Hang Seng Index heavyweights come into play after the holidays
Heavyweight shares of Hong Kong’s benchmark index The Hang Seng Index played catch-up after returning from the Lunar New Year holiday, with the index jumping 1.8%.
The technology company’s shares Xiaomi and Lenovo rose 9.27% and 4.51% respectively.
Shares in the property company experienced a similar increase. Longfor Group saw an increase of 6%, while Logan Group went up 7.35 percent. Rural garden rose 3.13 percent.
Shares of listed car companies in Hong Kong also rose, with BYD increasing by 5.83% and Geely up 4.32 percent.
– Lee Ying Shan
Macquarie estimates that Hyundai has a record 3.2 trillion won in operating profit
Hyundai is expected to post a record 3.2 trillion won ($2.597 billion) in operating profit, according to an earnings forecast from Macquarie’s Capital Head of Mobility Research, James Hong.
“We are slightly above market consensus,” said Hong, who attributed the forecast to the company’s Brazilian manufacturing arm driving sales volume growth, as well as currency tailwinds from the weak Korean won against the dollar.
According to Refinitiv estimates, Hyundai is expected to deliver fourth-quarter net income of 2.311 trillion won, which would mark an 81% increase from the company’s third-quarter net income of 1.272 trillion won.
Hyundai’s earnings call is scheduled for 1pm local time.
The company’s shares were last up 1.93%.
– Lee Ying Shan
CNBC Pro: Wall Street majors share when global stock markets could bottom and by how much
As stocks continue their rise, several major financial institutions are now predicting a significant decline in global equity markets.
The The S&P 500 index has risen by more than 10% since its low in October last year. In Europe is STOXX 600 has increased by more than 15% in the same period.
But according to some investment banks, those gains are now at risk as they fear the lagged effects of monetary tightening are likely to hit earnings and lead to compression of profit margins this year.
CNBC Pro subscribers can read about when the market is likely to fall and by how much here.
– Ganesh Rao
The Philippines’ economy grows a strong 7.2% in the fourth quarter
The Philippine economy grew a robust 7.2% in the fourth quarter of 2022, beating expectations, according to data from the Statistics Authority.
A Reuters poll had forecast gross domestic product growth to come in at 6.5% in the final three months of 2022, from a year earlier.
For the full year, the economy grew 7.6% in 2022 on the back of strong growth in sectors such as wholesale and retail trade; repair of motor vehicles and motorcycles, which rose 8.7%. Production came in at 5% and construction 12.7%.
“It just so happens that for this year what really matters is domestic consumption, and that’s what the Philippines has,” said Alicia Garcia-Herrero, chief Asia economist at Natixis, speaking to CNBC’s “Squawk Box Asia” on Thursday, before release of GDP data.
“For that reason, I think 2023 will be quite good for the Philippines compared to the rest of the region. Also the fact… that the central bank will have to do a bit more – maybe up to 6%, and then pause. And interest rates are very important for consumption.”
She added that interest rates will start to fall next year and that is “positive again” for the Philippines.
– Sumathi Bala
The Bank of Japan emphasizes the need to maintain current monetary policy
The Bank of Japan stressed the need to maintain its current monetary policy, including leaving control of the yield curve unchanged, according to the summary of opinions from its latest meeting published on Thursday.
“The bank must continue with the current yield curve control, given the prospect that it will take time to reach the price stability target of 2 percent in a sustainable and stable manner,” the message said, reiterating its unchanged stance on the inflation target. .
The central bank continued its operations to buy Japanese government bonds in response to the upward pressure on yields. The Nikkei reported earlier this week that the BOJ revealed it technically held more than 100% of several key 10-year JGBs – or runs higher than the issue amounts.
“There has been upward pressure on long-term interest rates and the distortions in the yield curve have not disappeared,” the BOJ said in its summary of opinions, noting further purchases of JGBs as one of many options for action it could take. to keep the yield curve controlled within the tolerance range.
– Jihye Lee
Singapore’s factory output is expected to fall 6.9%, extending the decline since October
Singapore’s year-on-year manufacturing output for December is expected to fall 6.9%, according to analysts polled by Reuters, which would register more than double the decline recorded in November.
The projected forecast would also extend Singapore’s output decline since October, and November’s figure of a 3.2% drop.
On a monthly basis, Singapore’s factory output is expected to register a 1.1% drop.
– Lee Ying Shan
South Korea’s economy marks first contraction since 2020
South Korea’s gross domestic product fell 0.4% in the fourth quarter of 2022 compared to the previous quarter, marking the first decline in two and a half years.
Private consumption fell by 0.4 percent, exports fell by 5.8 percent and industry fell by 4.1 percent, according to the Bank of Korea.
Government spending increased sharply by 3.2% compared to the third quarter’s increase of 0.1%.
On an annual basis, South Korea’s GDP in the last quarter rose 1.4% from a year earlier, missing Reuters’ expectations for growth of 1.5%.
– Lee Ying Shan
CNBC Pro: Want to cash in on China’s reopening? Bank of America and UBS have some less obvious stock picks
Stocks in certain key sectors directly related to China’s reopening, such as domestic consumption and travel, have performed well in recent months.
Investors looking for entry into these stocks may find them unpalatable at current valuations. But there may be another way to play the reopening, with Bank of America and UBS after identifying a number of less obvious beneficiaries outside China.
Pro subscribers can read more here.
— Zavier Ong
CNBC Pro: Lithium has a strong year ahead – and China’s reopening will boost this stock, analyst says
Things are looking up for the electric car industry, thanks to China’s reopening — especially in the second half of the year, an analyst says.
Corinne Blanchard, vice president of lithium and cleantech equity analysis at Deutsche Bank, mentions one of the most popular stocks.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Stocks ready mixed
Stocks were mixed on Wednesday.
The Dow Jones Industrial Average rose 9.88 points, or 0.03%, to end at 33,743.84. The Nasdaq Composite fell 0.18% to close at 11,313.36, and the S&P 500 fell 0.02% to settle at 4,016.22.
– Samantha Subin
Microsoft shares shed after-hours gains, turn negative
Microsoft shares fell about 1% in after-hours trading, reversing earlier gains.
Shares were initially higher after the company posted quarterly earnings per share that beat the Street’s expectations. But investor sentiment soured after Microsoft gave disappointing guidance for revenue in the current quarter at its earnings conference call.
The company forecast $50.5 billion to $51.5 billion in fiscal revenue for the third quarter, while analysts surveyed by Refinitiv expected $52.43 billion.
Read more about Microsoft’s results here.
–Darla Mercado, Jordan Novet
