Hong Kong-listed Chinese tech stocks are up early in the session
Hong Kong-listed shares of Chinese technology companies rose significantly in the first hour of trading.
tencent increased by 7.6%, Meituan won 5.9%, and alibaba increased by 9%. The Hang Seng Tech index rose about 4%.
The moves come despite disappointing activity and retail sales from China, and following the meeting of US President Joe Biden and Chinese President Xi Jinping ahead of the G-20 summit in Bali.
Safanad’s chief investment strategist said the discussion between the two leaders went “much better” than expected, though he attributed that mainly to low expectations.
TSMC Shares Up More Than 9% on Berkshire Hathaway News
Shares of Taiwanese semiconductor manufacturer listed in Taiwan jumped after that Berkshire Hathaway revealed a $4 billion stake in the company.
The share rose as much as 9.44%, reaching its highest level in almost two months.
Berkshire added more than 60 million shares of the Taiwanese chipmaker’s U.S. depositary receipts worth $4.1 billion (1.2% of TSM) by the end of the third quarter, making Taiwan Semi the conglomerate’s 10th largest holding at the end of September.
The stock was recently up about 8%.
China’s industrial production, retail sales miss expectations in October
China’s industrial production grew 5% in October compared to a year ago, a slowdown from a 6.3% increase in September. The latest figure misses the estimates of a 5.2% increase predicted in a Reuters poll.
Separately, retail sales in China fell 0.5% year-on-year in October, falling short of expectations.
Analysts polled by Reuters were expecting a 1% increase and retail sales grew 2.5% in September.
— Abigail Ng
CNBC Pro: Top Morningstar strategist says stocks are 15% undervalued and shares 6 favorites
With many stocks in a bear market, stocks could be 15% undervalued, according to Morningstar.
The chief US strategist at the equity research firm believes the headwinds present earlier this year will ease early next year and benefit equities.
Dave Sekera also shared his “fair value” assessment of six companies with a “broad economic moat” that will outperform in such an economic environment.
CNBC Pro subscribers can read more here.
— Ganesha Rao
Australia’s central bank hints at bigger rate hikes ahead
The Reserve Bank of Australia hinted at further and possibly larger rate hikes in its efforts to curb inflationary pressures, according to minutes of its latest meeting.
“The board agreed on the importance of bringing inflation back to target and expects to raise interest rates further in the coming period,” the press release said.
The central bank had considered raising its cash rates by 50 basis points, but saw a stronger case for raising rates by 25 basis points, she said.
Higher interest rates would be part of broader efforts to “establish a more sustainable balance between supply and demand in the Australian economy,” the RBA said, adding that members had not ruled out the possibility of returning to larger rate hikes if necessary.
– Jihy Lee
Japan’s economy unexpectedly contracted in the third quarter, data shows
Japan’s economy contracted unexpectedly in the third quarter from a year ago, official preliminary estimates showed.
Gross domestic product contracted by 1.2% in the July to September quarter compared to the same period last year, missing estimates for 1.1% growth in a Reuters poll.
— Abigail Ng
CNBC Pro: China Eases Its Covid Measures. This is how market professionals play it
Which Stocks Can Benefit if China Rolls Back Its Zero-Covid Policy? Market pros reveal how to play a reopening as China eases some of its virus controls.
Pro subscribers can read more here.
— Zavier Ong
Stocks of session lows on Brainard comments
The S&P 500 bounced back from its lows and government bond yields fell from their highs a little late this morning after Federal Reserve Vice Chairman Lael Brainard said it may be appropriate “soon” to slow the pace of interest rate hikes, in a conversation with Bloomberg News.
The S&P 500 was last down just 0.1% after falling more than 0.7% at one point Monday. The yield on 10-year government bonds was up 5 basis points to 3.878%, after previously trading around 3.90%.
“I think it’s really important to emphasize that we’ve done a lot, but we still have more work to do, both in terms of raising rates and maintaining restraint to reverse inflation over time. to 2%,” added Brainard.
—John Melloy, Jeff Cox
Fed’s Waller’s message to markets: Tariff endpoint ‘still a way out’
Fed Governor Chirstopher Waller said that while the central bank could raise rates at a slower pace next month, this should not be interpreted as a mitigating sign in its fight to curb inflation.
“Stop watching the pace and pay attention to where the end point will be. Until we lower inflation, that end point is still a way out,” Waller said on Sunday.
Earlier this month, the Fed raised interest rates by 75 basis points to the highest level since 2008.
— Fred Imbert