Hong Kong’s Hang Seng rises 2%, leads Asia markets higher after Powell’s inflation comments

HSBC says China’s latest inflation readings allow the PBOC to maintain accommodative monetary policy

China’s latest inflation numbers give the People’s Bank of China room to maintain its current monetary stance, HSBC said in a note.

“The moderation in price pressures gives the PBOC room to be accommodating,” China economist Erin Xin said.

Xin added that the central bank is likely to further ease the use of structural tools such as “additional re-lending quotas for focus areas such as manufacturing and green investment.”[ads1];

– Jihye Lee

China’s consumer price index rises 2.5% in August, misses estimates

China’s consumer price index rose 2.5% year-on-year in August, lower than the 2.7% recorded in July, data from the National Bureau of Statistics showed, and missing a Reuters poll forecast of 2.8%.

Producer prices rose 2.3% for the month, also slower than a 4.2% increase for July and missing estimates of 3.1%.

A Nomura report earlier this week said 12% of China’s total GDP was affected by Covid controls on a weighted basis – up from 5.3% last week.

Ji Hye Lee

The worst is not over for the Japanese yen, says analyst

The Japanese yen’s weakening is one of the more “stringent” and “easiest” moves to explain because it is “based on real fundamentals,” Monex Group CEO Jesper Koll told CNBC, adding that it could plunge even further in the coming months.

It’s the most “textbook-driven currency movement I’ve seen in 30 years,” he said.

Koll pointed to the interest rate differential between the US and Japan as one of the “powerful forces” that will move the yen, adding that the chance of the Bank of Japan raising rates is “close to zero.”

Read the whole story here.

— Charmaine Jacob

CNBC Pro: Uranium is ‘on a tear’ right now. Here are two ETFs to play it

One niche area of ​​the commodities market – uranium – has been a bright spot over the past month, with performance outperforming even the wider energy sector.

Two ETFs have rallied in recent weeks as the West tries to reduce its reliance on Russian energy.

Pro subscribers can read more here.

— Weizhen Tan

Bilibili plunges 16% at the open after reporting a loss in the second quarter

Hong Kong-listed shares of Chinese video and gaming company Bilibili plunged more than 16% at the open after reporting a second-quarter earnings miss overnight.

The company reported a net loss of more than $300 million almost double the loss reported for the same period a year ago.

However, Citi Research’s vice president of China internet and media Brian Gong was optimistic, saying regulatory concerns over the country’s gaming industry are easing.

Pointing to the government’s resumption of gambling licenses, Gong said “although the number is less than expected, it shows that the environment is improving,” he said on CNBC’s “Squawk Box Asia,” adding that “the worst is behind us.”

– Jihye Lee

CNBC Pro: Citi just upgraded eight Chinese stocks

China’s “economic recovery appears to be slower than market expectations,” Citi equity analysts said in a Sept. 2 report.

They downgraded 12 Chinese stocks – but upgraded eight. Here are three stocks from their updated list of the best Hong Kong and mainland Chinese stocks to buy.

Pro subscribers can read more here.

Evelyn Cheng

US stock futures open little changed

US stock futures opened little changed after a choppy rally in the major averages as Wall Street assessed the pace of future rate hikes.

Dow Jones Industrial Average futures rose 23 points, or 0.07%. S&P 500 and Nasdaq 100 futures rose 0.08% and 0.13%, respectively.

—Sarah Min

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