Hong Kong shares rise 4% as China promises support for ailing property market

Andrew Tan, Muzinich’s Asia-Pacific managing director, says private credit is a “very reliable, defensive product.”

Xiaolin Chen, KraneShares Head of International, discusses China’s recent statement from the Politburo and what it could mean for the country’s economic recovery.

Hong Kong’s Hang Seng index rose more than 4% on Tuesday, led by property shares that rose after China promised more support for its beleaguered property sector.

Property developer Longfor Group jumped almost 20% and was the biggest gainer on the index, while property management firm Country Garden Services Holdings rose 17.54%.

Hong Kong tech names were also among the top gainers on the index, with the Hang Seng Tech Index climbing 4.57% led by electric vehicle makers. Chinese electric car maker Xpeng saw a 12.75% increase, while Nio rose 9.79%.

South Korea’s gross domestic product grew by 0.9% year-on-year in the second quarter of 2023, according to advance estimates.

This was unchanged from 0.9% in the first quarter and beat the estimate of 0.8% from economists polled by Reuters.

On a quarterly basis, South Korea’s GDP grew by 0.6%, the largest quarterly growth since the second quarter of 2022.

– Lim Hui Jie

As the S&P 500’s year-to-date rally nears 20%, some investors have questioned whether stocks could be approaching a tipping point.

Other potential risks on the horizon include the inversion of the yield curve – believed by many to be a signal of recession – this week’s interest rate decision by the US Federal Reserve, and inflation figures due next month.

So how should investors allocate their portfolios in this environment? Here’s what Citi, TS Lombard and the Wells Fargo Investment Institute recommend.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Dividend growth is often a key factor for investors seeking stable returns, and four global companies are known for their consistent – ​​and significant – payout increases.

One of the stocks, a multinational food and beverage company, has consistently increased its dividend by more than 10% since 1993. Another has seen its share price rise by more than 4,000% in price returns, in addition to consistent dividend payments.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Bank of America has named several European “top stocks” it says are of “good value, low risk” and “high quality.”

All appeared on “recession screens” for July, in a market BofA described as being in a recessionary cycle. A style cycle refers to the relationship between economic cycles and investment styles, the bank said in a research note dated July 19.

CNBC Pro subscribers can read more here.

– Lucy Handley

Federal Reserve officials will likely need more evidence before declaring victory on inflation, according to a Wall Street Journal report.

Citing economists and Fed officials, the Journal noted that the decline in the inflation rate may be temporary, reflecting concerns policymakers had when inflation rose and also appeared to be temporary.

Uncertainty about inflation has spread to the White House, where one of its top economists, Jared Bernstein, told CNBC last week that “Our work is not done.”

Underscoring its commitment to bringing inflation down further, the Fed is expected to adopt another quarter-point rate hike this week. Investors will be listening closely to Chairman Jerome Powell for more clues about where policy is headed.

-Jeff Cox

West Texas Intermediate oil could close above its 200-day moving average ($77.14) on Monday for the first time since last August. Already, the September contract hit $77.85 a barrel on Monday, the highest since April 26.

September Brent contracts, the global oil benchmark, hit $81.84 early Monday, the highest since April 25.

August RBOB gasoline contracts (RBOB stands for Reformulated Gasoline Blendstock for Oxygenate Blending), which is the US standard, climbed to $2.8403 a gallon on Monday, the highest since April 14.

Meanwhile, the Energy Select Sector SPDR Fund is up 0.8% early Monday, adding to the 4% rally over the previous five trading days, led by Valero Energy, Devon Energy and Phillips 66 ( PSX ), all of which have risen nearly 7% or more in the past week.

“Oil looks poised to break out – WTI pushes through 200-day this morning (unperturbed by weak European data) and gasoline futures are flat +25% since May,” Stratega’s technical and macro research team wrote Monday.

—Scott Schnipper, Gina Francolla

Manufacturing activity picked up in July but remained in contraction, according to an S&P Global Flash PMI reading released on Monday.

The manufacturing PMI registered a reading of 49, representing the percentage of businesses reporting expansion. It was better than 46.3 in June, but still below the 50 level which is the dividing line between expansion and contraction.

Conversely, the services PMI was at 52.4, which is expansionary but was less than June’s 54.4 and the lowest level in five months.

-Jeff Cox

One of the busiest weeks of the second quarter earnings season kicks off this week with 30% of the S&P 500 reporting results. This includes revenue from tech giants including Microsoft, Meta Platforms and Alphabet.

So far this season, 18% of companies in the broad-based index have reported earnings, with 60% beating sales expectations, according to FactSet. Approximately 76% of the companies have topped expectations for earnings per share.

Across the board, analysts are bracing for a more than 9% decline in year-over-year revenue based on the blended growth rate.

– Samantha Subin