Shares higher ahead of RBA decision; Caixin PMI below 50

Australia’s central bank raises interest rates by 25 basis points as expected

The Reserve Bank of Australia raised interest rates by 25 basis points to 2.85%, in line with the average forecast of analysts in a Reuters poll.

This is the seventh tightening move in a row by the RBA in an attempt to control inflation in the country.

The Australian dollars rose to around $0.6440 before the decision and last traded at $0.6429 after the announcement.

At the previous meeting in October, the central bank raised the interest rate by 25 basis points, fewer than the expected half-point increase.

— Abigail Of

Movers in Hong Kong: Hang Seng Tech shares lead gains in broader index

Hong Kong-listed technology stocks led gains in the broader Hang Seng index, with Meituan increases more than 10% in the morning session.

Tencent increased 8.56%, Ali Baba rose 7.2% and Xiaomi increased 4.3 percent. also rose 6.06%.

The move comes after Caixin PMI data for China’s factory activity came in slightly better than expected, according to CMC Markets market analyst Tina Teng.

– Jihye Lee

Hang Seng loses more than 14% in the month of October

Asia-Pacific market developments in October

Market Month to date performance Year to date performance
Australia’s S&P ASX 200 6.01% -7.81%
Japanese Nikkei 225 4.5% -5.86%
South Korea’s Kospi 6.23% -23.1%
China’s Shanghai Composite -4.33% -20.5%
Hong Kong’s Hang Seng -14.55% -37.1%

The markets in Mainland China and Hong Kong did worse than corresponding Asia-Pacific markets in October.

The Hang Seng the index tumbled to its lowest levels since April 2009 after losing 14.55% at Monday’s close.

Meanwhile, stocks in Australia, Japan and South Korea posted single-digit gains to close the first month of the year’s final quarter, while the Shanghai Composite fell 4.33%.

Japanese stocks closed at their highest since September 20, but major APAC indexes remained under water from the start of the year.

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CNBC Pro: What investors should buy in this ‘short-lived’ rally, according to an analyst

Shares higher ahead of RBA decision;  Caixin PMI below 50

After the stock market rally in October, investors are debating whether shares have bottomed out or whether it is another short-lived bounce.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is in the latter camp, arguing that the rally again looks temporary.

He told CNBC what he thinks investors should buy — and short.

CNBC Pro subscribers can read more here.

— Weizhen Tan

China’s factory activity shrank for a third month in a row in October, private survey shows

The Caixin manufacturing Purchasing Managers’ Index for October showed that factory activity declined for the third consecutive month.

The gauge came in at 49.2, compared with expectations for a print of 49. In September, the manufacturing PMI was at 48.1, below the 50-point mark that separates growth from contraction.

PMI readings compare activity from month to month.

Official data from the National Bureau of Statistics came in at 49.2 on Monday, missing expectations for a print of 50.

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Hong Kong’s economy shrank by 4.5% in the third quarter

Hong Kong’s gross domestic product fell 4.5% in the third quarter of the year compared with the same period a year ago, preliminary estimates from the Census and Statistics Department showed on Monday.

It is the worst decline since the second quarter of 2020. Analysts polled by Reuters had expected 0.7% growth, while GDP fell 1.3% in the second quarter.

“The deteriorating external environment and continued disruptions in cross-border land cargo flows dealt a serious blow to Hong Kong’s exports,” the statement said, adding that the drop in GDP was “mainly due to the weak performance of external demand in the quarter.”

Fixed investment, or investments, fell by 14.3%, while exports and imports also fell.

— Abigail Of

CNBC Pro: This Chinese EV maker’s stock could rise more than 260%, Citi says

Citi has selected a major electric car maker as one of its “top” buying ideas among Chinese stocks.

It expects shares in the automaker to rise more than 260% over the next 12 months as sales of electric cars soar.

CNBC Pro subscribers can read more here.

– Ganesh Rao

South Korea’s trade deficit widens for the month of October

South Korea’s trade deficit widened to $6.7 billion for the month of October from a revised figure of $3.78 billion in September, customs data showed.

Imports rose 9.9% to $59.18 billion from the same period a year ago, while exports fell 5.7% to $52.48 billion.

The latest data shows the biggest drop in exports since August 2020, according to FactSet.

– Jihye Lee

CNBC Pro: Forget Tesla? Citi and HSBC mention 2 options for playing the electric car boom

Tesla may be an investor favorite for exposure to the electric car industry, but Citi and HSBC cite two options to play the growing demand for electric vehicles.

Pro subscribers can read more here.

— Zavier Ong

Japan spent $42.7 billion to prop up the yen, the ministry says

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