Hong Kong stocks fall in first hour of trade, led by consumer cyclicals
Hang Seng Index
Hong Kong’s Hang Seng index shed greater than 2% in the primary hour of trade, led by consumer cyclicals, health-care, basic materials and technology stocks.
Property stocks also saw sharp losses, including Longfor Group Holdings that dropped 4.59%, Country Garden that shed 4.56%.
Chinese smartphone maker Xiaomi fell greater than 4% and NetEase shed greater than 3%.
— Jihye Lee
Oil prices inch higher after OPEC says Russian oil production found ‘latest homes’
Oil prices traded barely higher after OPEC’s Secretary-General’s assertion that Russia’s oil production remained strong, with latest export partners within the midst.
“Russian production has been resilient, and it has managed to search out latest homes,” he said. “It just isn’t just China and India, I believe it is usually Turkey,” OPEC Secretary General Haitham Al Ghais said during a CERAWEEK conference held by S&P Global.
Brent crude futures last traded higher 0.23% to $83.48 a barrel, while the U.S. West Texas Intermediate futures inched up 0.06% to $77.63 a barrel.
—Lee Ying Shan
Singapore tech giant Sea’s stock rises after posting its first-ever profit
U.S.-listed stocks of Singapore-based tech giant Sea jumped 21.78% after reporting its first-ever quarterly profit in its latest earnings report on Tuesday.
“Recent cost-cutting measures like freezing salaries and worker headcount has given Sea’s stock some much needed reprieve,” said Jonathan Woo, senior research analyst at Phillip Securities.
Sea had seen billions of losses in previous years.
The firm delivered a positive net income of $422.8 million within the fourth quarter of 2022 from cost improvements, up from negative $616.3 million in the identical period a 12 months ago.
“The positive surprise in fourth-quarter 2022 earnings should provide continued upward momentum for Sea – especially with the trail to profitability barely clearer,” said Woo.
Sea Limited’s stock performance
China saw weaker imports despite rapid reopening: UBS
China’s economy saw weaker imports despite its rapid reopening, UBS’ head of China economic research Wang Tao said in a note.
“Despite a rapid reopening (sequentially) up to now 2 months, domestic demand growth on y/y basis can have been still relatively soft,” she said in a note.
She added the import volume of copper ore and iron ore each improved from December likely as a consequence of a pick up in construction activities.
“Our channel checks suggest that work resumption of construction sector was slow in the primary two weeks post CNY holiday, but accelerated within the third and 4th weeks,” she said, noting that crude oil import growth also fell alongside imports of IT components and auto products.
China on Tuesday saw exports fall by 6.8% in February in U.S. dollar terms and imports also declined 10.2%.
— Jihye Lee
U.S. plans to lift Covid testing requirement for travelers from China: NBC
The U.S. plans to scrap Covid testing requirements for travelers coming from China, a source accustomed to the matter told NBC News.
The necessities, which applied no matter nationality and vaccination status, began Jan. 5.
“For the reason that implementation of the policy, we now have evidence that cases, hospitalizations, and deaths are declining within the [People Republic of China] and we now have gathered higher information in regards to the surge,” the person told NBC, adding that the U.S. will proceed to watch cases in China and around the globe.
The Traveler-based Genomic Surveillance Program will still be kept in place, and can proceed to watch flights from China and regional transportation hubs, NBC reported.
— NBC News, Lee Ying Shan
Japan’s current account surplus fell in January
Japan’s seasonally adjusted current account balance rose to 216.3 billion yen ($1.57 billion) in January, government data showed on Wednesday.
The excess in balance saw a pointy drop from December’s balance of 1.18 trillion yen and November’s balance of 1.92 trillion yen.
The Japanese yen barely weakened on Wednesday morning to 137.46 against the U.S. dollar
— Jihye Lee
Reserve Bank of Australia reiterates they’re closer to pausing rates
Reserve Bank of Australia governor Philip Lowe in a speech on Wednesday said the central bank is closer to reaching some extent to pause further rates of interest hikes.
“With monetary policy now in restrictive territory, we’re closer to the purpose where it can be appropriate to pause rate of interest increases to permit more time to evaluate the state of the economy,” he said, in line with a transcript.
“At what point it can be appropriate to pause can be determined by the information and our assessment of the outlook,” said Lowe.
Commonwealth Bank of Australia’s senior economist Belinda Allen said in a note that the speech didn’t reverse Tuesday’s statement that carried less hawkish tones.
Allen added that CBA expects the central bank to hike over again before pausing to three.85% — or to carry rates within the upcoming April monetary policy meeting.
— Jihye Lee
Key a part of the yield curve hasn’t been this inverted since 1981
The gap between the 2-year Treasury yield and the 10-year Treasury rate widened to 100 basis points during Tuesday’s trading. This spread has not settled at levels this wide since September 22, 1981.
The two-year yield jumped to its highest since 2007 after Federal Reserve Chairman Jerome Powell said the central bank might have to extend the pace of rate of interest hikes again.
The yield curve inversion is a phenomenon that for half a century has accurately signaled coming recessions.
— Yun Li
Key Powell remarks for the market
There have been two key quotes within the Congressional testimony of Federal Reserve Chairman Jerome Powell so far as markets were concerned.
“The most recent economic data have are available in stronger than expected, which suggests that the final word level of rates of interest is prone to be higher than previously anticipated,” Powell said in prepared remarks.
This implies the Fed may keep raising for longer than the market anticipated. Many wanted the Fed to stop climbing soon.
“If the totality of the information were to point that faster tightening is warranted, we could be prepared to extend the pace of rate hikes,” Powell also said.
The Fed’s last hike was just 1 / 4 point because it slowed the pace. Powell is hinting here the Fed might have to hurry back up, which is a giant fear of the markets.
— John Melloy
CNBC Pro: This ETF only invests in women-led corporations — and is predicted to rise 20% this 12 months
A U.S.-listed ETF is barely investing in corporations which might be led by women, with the idea that the “female factor” outperforms.
The ETF was created after its fund manager, who has a background in investment banking and personal equity, observed that institutional barriers to female candidates for top positions have meant that those that do succeed have needed to perform at the next level, leading to higher overall performance.
The ETF is predicated on an index that has outperformed its benchmark by over 20% over the past five years.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Tesla a ‘screaming buy’ or bellwether for zombie stocks? The bulls and bears state their case
Meta stock rises following news of fresh layoffs
Meta is planning one other round of layoffs that would affect hundreds of staff as soon as this week, in line with a Bloomberg News report published Monday evening.
The job cuts come after the corporate laid off 13% of its workforce in November as a part of a significant cost-cutting plan. CEO Mark Zuckerberg previously told investors that 2023 could be the “12 months of efficiency” for the corporate.
Meta shares gained 1.5% during premarket trading on Tuesday following the news.
— Hakyung Kim
