Japanese movers: Softbank, Nintendo, Toyota fall
Apple suppliers in Asia drop after analyst downgrade
China reports better-than-expected factory activity for September
China’s official manufacturing purchasing managers’ index grew surprisingly to 50.1 in September, much higher than the 49.6 analysts had forecast in a Reuters poll.
The 50 point figure separates growth from contraction. PMI prints compare activity from month to month.
Meanwhile, the Caixin/S&P Global manufacturing Purchasing Managers’ Index, a private survey of factory activity — reported a contraction with a reading of 48.1.
“Moderate demand and lower production demands have led companies to scale back their sourcing activities in September, with the decline being the fastest in four months,” Caixin’s press release said.
The official PMI for non-manufactured goods stood at 50.6 in September, up from 52.6 in August.
— Abigail Ng
Factory activity in China is expected to decline again
According to a poll by analysts from Reuters, China’s official purchasing managers’ index for September is expected to fall below the 50-point separating growth and contraction.
Economists expect a figure of 49.6, slightly higher than August’s 49.4, which would mark the third consecutive month of contraction.
PMI measurements are sequential and represent month-over-month expansion or contraction.
A private survey of Chinese factory activity is also scheduled for Friday, with analysts polled by Reuters predict the printout will come in at 49.5.
— Abigail Ng
Japanese industrial production rises more than expected
CNBC Pro: Is the Fed on the Right Track? Wall Street Veteran Ed Yardeni Says It Should Be Next
Earlier this month, the US Federal Reserve announced a 75 basis point hike, pushing Federal Funds interest rates up to a range of 3% to 3.25%. The central bank also indicated that it could raise interest rates by as much as 4.6% in 2023 to contain inflation.
Ed Yardeni, the economist who coined the term “government guards,” gives his take on the Fed’s response to inflation, which is under intense scrutiny.
Pro subscribers can read more here.
— Zavier Ongo
Fed’s Loretta Mester says interest rates are not yet restrictive
Loretta Mester, president of the Cleveland Federal Reserve, said interest rates are not yet restrictive and more needs to be done to curb inflation.
“Inflation is still 40 years high,” Mester told CNBC’s Steve Liesman during a performance on “Squawk Box.” “So right now the talk has to be what we need to do, what we need to do to get back to price stability, because we can’t have a healthy economy, we can’t have good labor markets over time unless we go back for price stability.”
Mester said she’s probably “a little above average” among Fed officials when it comes to raising interest rates, citing ongoing inflation.
“We’re still not even in restrictive fund rate territory, so you’re right, we’ve increased fund rates by 300 basis points this year, but look how high inflation is,” Mester said.
— Sarah Min