Asian markets are mixed as talks on the US debt ceiling end without a deal

An hour ago

New Zealand’s central bank expected to raise interest rates by 25 basis points to 5.5%

New Zealand’s central bank is expected to raise its benchmark interest rate to 5.5% when it meets on Tuesday, according to a Reuters poll of 25 economists.

21 of the economists surveyed expected an upswing, while the rest expected a pause. In the same Reuters survey, the median expected interest rate increase is 25 basis points.

A rate hike on Tuesday would be the Reserve Bank of New Zealand̵[ads1]7;s 12th since October 2021.

The RBNZ earlier surprised investors with a 50 basis point hike to 5.25% in March, when most economists had expected a 25 basis point increase.

Lim Hui Jie

An hour ago

South Korea’s consumer sentiment rises to its highest level in a year

South Korea’s consumer sentiment climbed in May to its highest level in a year. Data from the Bank of Korea showed a reading of 98, compared with 95.1 a month ago.

Inflation is expected to weaken to 3.5 per cent, lower than 3.7 per cent the previous month, the central bank said.

Reuters reported a BOK official as saying “It is too early to say that inflation expectations are stabilizing, with continued uncertainty around government price increases and other factors.”

— Lim Hui Jie

3 hours ago

Japan’s factory activity expands for the first time since October 2022: au Jibun bank

Japan’s manufacturing sector registered an expansion for the first time in seven months, according to flash estimates from au Jibun Bank.

The manufacturing PMI came in at 50.8 in May, a reversal from 49.5 recorded in April, “signaling the first improvement in operating conditions since October 2022,” the report showed. A PMI reading above 50 indicates expansion, while a reading below that level indicates contraction.

The bank noted that there were renewed increases in both output and new orders, with both variables rising at the strongest pace in 13 months. Manufacturers indicated that supply chain problems were showing signs of improvement.

Japan’s services PMI was 56.3 in May, higher than the 55.4 seen in April and rising at the strongest pace since the series began. Composite PMI rose to 54.9, up from 52.9 in April.

— Lim Hui Jie

4 hours ago

Hong Kong’s inflation rate rises to 2.1% in April

Hong Kong inflation rose 2.1% in April from a year earlier, slightly above the 2% expected by economists polled by Reuters. Inflation in April was also higher than the 1.7% recorded in March.

A city government spokesman said prices of energy-related goods continued to rise sharply year-on-year, as well as the cost of clothing and footwear.

The price of electricity, gas and water rose by 17.8%, while the prices of clothes and shoes rose by 6.4%.

The price of takeaway meals and dining out also rose by 4.2%, while “price pressures on other key components remained broadly contained,” the spokesman said.

Going forward, Hong Kong expects that domestic price pressures may increase along with the economic recovery. Overall inflation is likely to pick up in the rest of 2023, but will remain “largely moderate”.

— Lim Hui Jie

10 hours ago

McCarthy has high expectations for his debt ceiling meeting with Biden

House Speaker Kevin McCarthy, R-Calif., says “decisions must be made” at his meeting on the debt ceiling with President Joe Biden, scheduled to begin at 5:30 p.m. ET.

“We have to have movement” on parts of any deal to raise the debt ceiling, McCarthy told reporters at the Capitol, adding “I know where I think people should be able to get to.”

With just 10 days to go until the earliest date Treasury Secretary Janet Yellen says the US will risk default, Biden and McCarthy are under intense pressure to reach a compromise deal. If and when they do, it will still take at least a week to turn the handshake agreement into legislation and send it through the House and Senate.

The House is currently scheduled to adjourn for the Memorial Day holiday this weekend, but McCarthy said he would delay if necessary to hold a vote to raise the debt ceiling. “We’re going to stay and do our job,” he said.

-Christina Wilkie

4 hours ago

CNBC Pro: Asset manager reveals short position in these 4 global commercial real estate stocks

Shares of several global commercial real estate companies are set to fall further, according to chief investment officer Patrick Armstrong.

Armstrong, who manages equity strategy at asset manager Plurimi, revealed he is shorting four global commercial real estate companies.

“It’s an expensive company, in my opinion, facing a pretty toxic environment,” he said of one of his shorts.

CNBC Pro subscribers can read more here.

– Ganesh Rao

4 hours ago

CNBC Pro: Fund manager shares tips on investing sustainably – and generating great returns

Philip Ripman manages the $1 billion Storebrand Global Solutions fund, with a focus on sustainability. But in addition to green energy stocks, he also invests in chipmakers, cybersecurity stocks, pharmaceuticals and more.

His strategy appears to have paid off in the long term: his fund ranks at the top with a 10-year annualized return (15%) on Morningstar’s list of global mega-cap equity funds.

Here are three tips on sustainable investing, including how to play the renewable energy theme, according to Ripman.

CNBC Pro subscribers can read more here.

— Weizhen Tan

16 hours ago

Kashkari calls potential for June break ‘an imminent call’

Minneapolis Federal Reserve President Neel Kashkari noted Monday that a rate hike versus a pause in June is a “close call.” However, he added that even if the central bank decides on another hike, it should not be considered a sign of the future.

“Right now it’s a close call anyway … If we were to skip in June, that doesn’t mean we’re done with our tightening cycle, it means to me we’re getting more information,” he said on CNBC’s ” Squawk Box. “

He called the economy “robust” and noted that “we may have to go north of 6%” for the Fed Funds rate from the current target range of 5%-5.25% if inflation shows no more signs of falling.

-Jeff Cox

11 hours ago

Bitcoin and Ether are in for their worst month of 2023

Cryptocurrencies were flat to start the week as moves in stocks and bond yields continued to push and pull on crypto prices.

Bitcoin was down 8.7% for May and on pace for its worst month since November, according to Coin Metrics. Ether was lower for the month by nearly 5% and is heading for its worst month since December.

“Crypto continues to remain the best-performing asset this year relative to gold, stocks, bonds and the DXY,” Bernstein analyst Gautam Chhugani said in a note on Monday. “We continue to believe in our structural thesis of the ‘new crypto cycle,’ but there is never a straight path up… These dull markets, we believe, offer the best long-term risk rewards.”

— Tanaya Machel, Gina Francolla

13 hours ago

Micron shares fall as China curbs sales

Shares of Micron Technology fell more than 3% on news that China will restrict some sales of the memory chip maker’s products.

The country’s cyberspace administration barred operators of “critical information infrastructure” from buying products from the company after Micron’s products failed network security reviews.

The firm poses a “major security risk” to China’s supply chain for critical information infrastructure and impacts [its] national security, says a statement.

The news lifted Chinese chipmakers, including Hong Kong-listed Hua Hong Semiconductor and SMIC. Some chipmakers, including Qualcomm, Lam Research, Broadcom and Applied Materials, were down nearly 1% each.

– Samantha Subin

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