Hong Kong movers: Technology, consumer, reopening-related stocks
Technology and consumers related to reopening led gains in Hong Kong during Wednesday’s morning trade.
Tencent gained 5.53%, NetEase gained 6.94% and Alibaba rose 4.74%.
EV makers also saw gains, with Xpeng gaining 8.73%, Li Auto jumping 7.32%, and Baidu rising 5.56%.
Reopening-related consumer names also rose, with Budweiser Brewing Company up 6.38%, Anta Sports gaining 5% and Li Ning up 4.64%.
China’s factory activity in February shows further growth
China’s official manufacturing purchasing managers’ index rose to 52.6 in February, above the 50-point mark that separates growth from contraction, data from the National Bureau of Statistics showed.
That is in comparison with January’s reading of fifty.1 and above expectations of fifty.5, based on economists surveyed by Reuters.
Non-manufacturing PMI rose to 56.3 – also above January’s reading of 54.4, the best level since June 2022.
– Jihye Lee
Japan factory activity slows on the fastest pace in 2.5 years
Japan’s factory activity slowed on the fastest pace in two and a half years in February, a non-public survey by au Jibun Bank showed.
The manufacturing purchasing managers’ index fell to 47.7, down from 48.9 in January. This also marked the fourth straight month that Japan’s factory activity has stayed in contraction territory.
A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction in growth.
On Tuesday, Japan’s industrial production fell 4.6% in comparison with a month ago in January, the largest decline the economy has seen in eight months.
— Lim Hui Jie
Australia gross domestic product grows 2.7% in 2022
Australia’s economy grew 2.7% for the entire of 2022, in keeping with economists expectations, but lower than 2021’s figure of 5.9%.
On a quarterly basis, gross domestic product grew 0.5%, based on the country’s bureau of statistics data. Australia has now recorded five consecutive rises in quarterly GDP, but growth slowed for the last two quarters.
The Australian dollar strengthened 0.36% against the U.S. dollar, while the S&P/ASX 200 dipped 0.22% lower.
CNBC Pro: Is ChatGPT the tip of the iceberg? Analysts reveal potential A.I. uses — and the stocks to play it
The success of ChatGPT has captured the imagination of the general public — and the eye of investors. But HSBC says the chatbot may very well be the tip of the synthetic intelligence iceberg.
So what’s next for AI? Wall Street analysts reveal its potential and name several stocks to play the emerging space.
Pro subscribers can read more here.
— Zavier Ong
South Korea’s trade deficit narrowed in February
South Korea’s trade deficit narrowed to $5.3 billion in February after marking a deficit of $12.65 billion in January, preliminary data showed.
The most recent reading is a smaller deficit than expectations to see a $6.06 billion deficit, based on economists surveyed by Reuters.
Exports declined by 7.5%, dropping lower than expectations to see a decline of 8.7% – while imports grew 3.6%.
– Jihye Lee
Stock market this 12 months may defy March’s usual history of positive gains
March is most frequently a positive month for the stock market, but this 12 months it could bring more of the identical turbulence that rattled investors in February.
Stocks are set to exit February with steep losses, with the S&P 500 down 2.3% for the month through Monday. The index continues to be up 3.7% for the 12 months to this point.
“February is the second worst month of the 12 months, posting a median decline of 0.21%, which is the second worst after September,” said Sam Stovall, chief investment strategist at CFRA. “Nonetheless, March on average posts a gain of 1.1%, rising 64% of the time.” March is the fifth-best month for the S&P 500, based on CFRA data going back to 1945.
For more, read the complete story on CNBC Pro.
— Patti Domm, Tanaya Macheel
CNBC Pro: Top investors share 3 suggestions for getting stocks on this turbulent market
U.S. 10-year hits highest level since November
The yield on the 10-year U.S. Treasury note hit a high of three.983% on Tuesday, its highest level since Nov. 10, when the note yielded as high as 4.117%. It was last higher by about 3 basis points at 3.955.
Treasury yields added to their sharp February gains as traders continued weighing the prospects of upper tighter monetary policy for longer than expected.
— Gina Francolla, Tanaya Macheel
UBS says Fed’s rate hikes are creating “downside risks” for markets
The U.S. Federal Reserve’s rate hikes have weighed on equity markets, based on UBS Financial Services.
“We judge that the economy is in late-cycle, with the Fed continuing to hike rates and growth more likely to slow. Tighter policy creates downside risks for markets,” UBS senior U.S. economist Brian Rose wrote in a note to clients on Monday.
The firm anticipates the S&P 500 will finish the 12 months near current levels, with higher upside potential in cyclical markets outside of the U.S., specifically in emerging markets and Germany.
“We prefer value over growth,” Rose wrote.
Based on Rose, financial conditions haven’t tightened in keeping with the Fed’s rate hikes. The Fed raised rates of interest by 25 basis points on February 1, and suggested there can be further rate hikes within the months ahead.
— Pia Singh
