China’s factory activity shrank for a 3rd consecutive month in October, private survey says
The Caixin manufacturing Purchasing Managers’ Index for October showed that factory activity contracted for the third month in a row.
The reading got here 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 got here in at 49.2 on Monday, missing expectations for a print of fifty.
— Abigail Ng
Hong Kong’s economy shrank by 4.5% within the third quarter
Hong Kong’s gross domestic product fell by 4.5% within the third quarter of the yr compared with the identical period a yr ago, advance estimates from the Census and Statistics Department showed Monday.
That is the worst contraction for the reason that second quarter of 2020. Analysts polled by Reuters expected 0.7% growth, while GDP decreased 1.3% within the second quarter.
“The worsened external environment and continued disruptions to cross-boundary land cargo flows dealt a serious blow to Hong Kong’s exports,” the statement said, adding the drop in GDP was “mainly attributable to the weak performance in external demand in the course of the quarter.”
Fixed capital formation, or investment, decreased by 14.3%, while exports and imports also fell.
— Abigail Ng
CNBC Pro: This Chinese electric carmaker’s stock could rally by greater than 260%, Citi says
Citi has picked a big electric automobile maker as considered one of its “top” buy ideas amongst Chinese stocks.
It expects shares within the automaker to rise by greater than 260% over the following 12 months as EV sales 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, data from the customs agency showed.
Imports rose 9.9% to $59.18 billion from the identical period a yr ago, while exports dropped 5.7% to $52.48 billion.
The newest data shows the most important drop in exports since August 2020, in response to FactSet.
–Jihye Lee
CNBC Pro: Forget Tesla? Citi and HSBC name 2 alternatives to play the EV boom
Tesla could also be an investor favorite for exposure to the EV industry, but Citi and HSBC name two alternatives 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, ministry says
Hang Seng loses greater than 14% within the month of October
Asia-Pacific market performance in October
| Market | Month-to-date performance | Yr-to-date performance |
| Australia’s S&P ASX 200 | 6.01% | -7.81% |
| Japan’s 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% |
Mainland China and Hong Kong markets underperformed Asia-Pacific peers within the month of October.
The Hang Seng index wallowed at its lowest levels since April 2009 after losing 14.55% as of Monday’s close.
Meanwhile, stocks in Australia, Japan and South Korea posted single-digit gains to shut the primary month of the yr’s final quarter, while the Shanghai Composite slipped 4.33%.
Japan stocks closed at their highest since Sept. 20, but major APAC indexes were all still underwater from the beginning of the yr.
— Abigail Ng
