Asian markets mixed as China cuts key lending rates
11 minutes ago
Congestion in the ports is largely back to normal, says HSBC
Congestion at the ports has largely returned to normal, and disruptions related to the Covid spending boom “are certainly behind us,” said Parash Jain, HSBC’s Head of Transport Research in Asia Pacific.
“What we are witnessing now is a massive destocking going on in the United States,” Jain told CNBC’s “Squawk Box Asia”[ads1]; on Tuesday.
US port import data is down about 20% year-over-year, but, Jain said, it is “still holding up better” than in 2019. Normalization is also happening in air cargo, he added.
Total cargo volume is back to pre-Covid trends, Jain said.
— Audrey Wan
2 minutes ago
Australia’s central bank cites sticky domestic inflation as the reason for raising interest rates in June
The Reserve Bank of Australia said it took the decision to raise its benchmark interest rate to 4.1% after seeing that inflation data had “shifted to the upside” and that domestic inflation will take longer to return to target.
In minutes released for the RBA’s June meeting, the central bank revealed that members were considering whether to raise interest rates or hold them pending further data.
However, the case for raising interest rates prevailed, with the argument that inflation was already projected to be above target for a number of years and was expected to take somewhat longer to return to target in Australia than in some other countries.
The RBA cited the increase in Australia’s inflation rate in April, and that the decline in commodity inflation was smaller than observed in other countries.
“Service price inflation had yet to show signs of moderating and the evidence from abroad suggested that it may prove persistent,” the minutes added.
— Lim Hui Jie
26 minutes ago
Shares of mainland Chinese developers plummet in Hong Kong after China cuts interest rates
Shares of mainland Chinese developers fell more than 3% after China cut its five-year prime lending rates less than some economists expected.
Reuters said that according to a survey it conducted before the announcement, 16 of the 32 analysts polled expected a deeper cut of at least 15 basis points to the five-year prime lending rate.
The five-year LPR, which serves as the benchmark interest rate for mortgages, was cut by 10 basis points to 4.2%.
Property stocks on the Hang Seng Index led losses, while the Hang Seng Mainland Properties Index fell more than 3.5%.
Property developer Country Garden Holdings was the biggest loser on the HSI, falling 5.65%, while property investment firm Longfor Group fell 4.94%.
— Lim Hui Jie
11 minutes ago
Congestion in the ports is largely back to normal, says HSBC
Congestion at the ports has largely returned to normal, and disruptions related to the Covid spending boom “are certainly behind us,” said Parash Jain, HSBC’s Head of Transport Research in Asia Pacific.
“What we are witnessing now is a massive destocking going on in the United States,” Jain told CNBC’s “Squawk Box Asia” on Tuesday.
US port import data is down about 20% year-over-year, but, Jain said, it is “still holding up better” than in 2019. Normalization is also happening in air cargo, he added.
Total cargo volume is back to pre-Covid trends, Jain said.
— Audrey Wan
An hour ago
China cuts lending rates by 10 basis points
China has cut its key one-year and five-year prime rates by 10 basis points each, the first cut since August.
The one-year LPR stands at 3.55%, down from 3.65%, while the five-year LPR was reduced to 4.20% from 4.30%. The moves reflect cuts China made last week in its short- and medium-term lending rates.
Following the announcement, the offshore yuan weakened 0.13% to trade at 7.172 against the dollar.
— Lim Hui Jie
2 hours ago
Japanese trading houses rise after Buffett raises stakes
Japanese trading houses jumped at the open on Tuesday after Berkshire Hathaway increased its stake in five Japanese trading firms to an average of more than 8.5%.
Mitsui jumped 4.55%, Marubeni gained 3.44%, and Mitsubishi rose nearly 4% while Itochu and Sumitomo rose nearly 3% each.
Japan’s top five trading houses saw renewed momentum thanks to Warren Buffett, who bucked the trend as Japanese shares continued to fall for another day.
The firm noted that the combined value of these interests exceeds the value of Berkshire-owned shares in any country outside the United States, the firm said.
— Jihye Lee, Elliot Smith, Ruxandra Iordache
2 hours ago
China was expected to deliver cuts in its prime rates
The People’s Bank of China is expected to deliver rate cuts to its 1- and 5-year prime rates later today.
Economists polled by Reuters forecast a 10 basis point cut in the 1-year prime rate and a 15 basis point cut in the 5-year prime rate, according to Factset.
China last delivered cuts to its LPRs in August 2022. Investors will watch today’s decision closely after the central bank lowered its medium-term lending facility and its seven-day reverse repo rate.
– Jihye Lee
3 hours ago
CNBC Pro: Analyst says this automaker could be next in line for a Tesla supercharger deal
A global auto giant could be the next company to sign a deal with Tesla to use its supercharger stations, according to RBC analyst Tom Narayan.
If the deal goes through, the deal would follow similar partnerships that Tesla has entered into with Ford and General Motors.
Investors have rewarded all parties to the deal in the past. The day after the agreement, Tesla’s and Ford’s shares rose by 4.7% and 6.2% respectively. Both automakers’ share prices have risen by more than 25% since then.
CNBC Pro subscribers can read more here.
– Ganesh Rao
3 hours ago
CNBC Pro: This veteran investor’s fund has outperformed since 2006. Here are his best strategies
Top portfolio manager Jordan Cvetanovski has been looking for certain characteristics in the companies he’s selected for the past nearly 20 years.
And the results have proven consistent through the global financial crisis, the era of zero interest rates – and now high interest rates.
One fund managed by Cvetanovski of Pella Funds Management beat the benchmark by a whopping 27% over a four-year period.
CNBC Pro subscribers can read more here.
— Weizhen Tan
4 hours ago
A strong week — even with Friday’s weak finish
The three major averages hit notable milestones with last week’s wins, although Friday ended on a downbeat note.
While the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite ended Friday’s session in the red, all three indexes were up for the week.
The S&P 500 jumped 2.6% for the week, its strongest weekly performance since March and its fifth consecutive positive week — a first since it ended a streak of the same length in November 2021. Tech-heavy Nasdaq gained 3.25% for the week, the best since March and the eighth consecutive positive week for the first time since ending a 10-week streak in March 2019.
The Dow also edged to a modest weekly win, adding 1.25% and posting its third consecutive positive week since April this year.
—Darla Mercado, Chris Hayes
4 hours ago
