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Hong Kong shares lead losses in mixed Asian trade after John Lee's speech

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William Ma says ‘too early’ to buy Hong Kong property until policies pull back talent

William Ma, Chief Investment Officer of GROW Investment Group, said it is too early to buy both property shares and physical property in Hong Kong.

Speaking on CNBC’s “Street Signs Asia”, Ma said that short-term investors will have to “wait and see” whether Hong Kong leader John Lee’s policies to attract talent will draw people back to the city-state.

Additionally, Ma expects property prices and equities to fall due to weak demand, adding that what Hong Kong needs is a “genuine economic recovery.”

Ma also said that Hong Kong’s financial importance will continue and Chinese companies still prefer to trade in Hong Kong markets.

— Lee Ying Shan

Hong Kong carriers: Tech, EV, Macao casino shares fall; real estate stocks lose previous gains

Shares of tech companies and EV manufacturers traded in Hong Kong continued to trade lower during Hong Kong leader John Lee’s policy speech, dragging the overall index as well as Macao casino shares.

Xpeng Engines fell 8.24%, bilibili fell 4.2% and meituan also fell 3.64%. Tencent and Ali Dad also fell more than 2.5%.

Macau casino shares also fell MGM China fell 3.84% and Wynn Macau decreased by 4.15%.

Meanwhile, real estate shares outpaced previous gains. Country Garden was last up 0.7% after trading more than 4% prior to Lee’s speech.

China Overseas Land and Investment rose 2.25% after the previous 5% increase.

–Jihye Lee

Kakao’s co-CEO resigns after locking 53 million users from mass outage

A senior executive at Kakao Corp is to step down after a data center fire caused a mass outage over the weekend and her messenger disrupted services for its 53 million users worldwide.

Co-CEO Namkoong Whon apologized after the outage and said he would resign.

“I feel the heavy burden of responsibility for this incident and I will step down as CEO and lead the emergency disaster task force overseeing the aftermath,” Namkoong said at a press conference at the company’s office outside of Seoul. Said. Wednesday.

Kakao’s shares were down slightly after the press conference, trading 2.43%.

–Jihye Lee

Hong Kong real estate stocks rise ahead of annual policy address

Shares of real estate companies traded in Hong Kong rose in morning trading ahead of a policy speech from Chief Executive John Lee.

China Overseas Land and Investment increased by 5%, CK Asset won 2.75% and China Country Added 2.5%. Rural garden it also added 4.26% to the front of Lee’s speech.

Local media in Hong Kong reports that foreign property owners can get a discount on the buyer’s stamp duty.

– Abigail Ng

Shares of Apple suppliers drop as iPhone 14 Plus production cut report

Shares of Apple suppliers in Asia fell after the tech firm reportedly asked a manufacturer in China to halt production of an iPhone 14 Plus component as Apple was reevaluating demand for the product.

The information reported that the other two suppliers, which assembled modules from this component, also significantly reduced production.

LG Innotek and SK Hynix lost about 2% in South Korea, while Japan’s TDK Inc. and Murata Manufacturing shedding more than 1% each.

Apples The stock lost $4 per share overnight, but closed the regular session 0.94% higher as major indexes rose.

– Abigail Ng

CNBC Pro: Goldman Sachs outlines four economic scenarios and forecasts how gold will perform in each

It’s been a volatile year for gold, with the precious metal “torn between growth and inflation risks and higher real rates and a stronger dollar,” Goldman analysts said in an October 11 note.

“In our view, there is a lot of uncertainty about the future path of US inflation, growth, rates and central bank (CB) response functions.”

Goldman conducted four different economic scenarios and predicted where gold prices would end up in each case.

CNBC Pro subscribers can read more here.

U.S. crude futures rose $1 a barrel on expectations Biden will extract oil from the Strategic Petroleum Reserve

Futures West Texas Intermediate crude oil It’s up around $1, or 1.33%, and futures Brent crude oil It rose $0.83, or 0.92%, as the Biden administration is expected to release more oil from the US Strategic Petroleum Reserve.

The plan could be announced Wednesday, sources told CNBC.

Sources said the move aims to extend the current SPR deployment schedule, which began this spring, until December.

–Kayla Tausche, Jihye Lee

RBNZ likely to ‘jumbo raise’ 75bps in November: ANZ

Economists at ANZ expect the Reserve Bank of New Zealand to raise 75 basis points each at its November and February meetings.

New Zealand’s central bank raised interest rates by 50 basis points to 3.5% earlier this month, pushing the cash ratio to a seven-year high.

ANZ said the Reserve Bank of Australia would follow a more conservative path than the RBNZ, which would result in “a much wider policy divergence in 2023”.

The RBNZ’s next monetary policy meeting is scheduled for 23 November.

–Jihye Lee

Apple fell on production outage report

Shares of Apple fell and briefly turned negative after a report by The Information that the tech giant has cut production of the new iPhone 14 Plus.

The move by Apple, the largest U.S. stock, has brought the main averages back to the lows of the day, though they’ve since recovered some of that ground.

How high can the Fed raise the 10-year yield?

The Fed is expected to raise another quarter point next month, but the central bank may be approaching the limit of dictating long-term interest rates, according to Jim Paulsen of The Leuthold Group.

“In past tightening cycles, there is substantial precedent for the Fed to be shut down by the bond market that first “flashed”. The Fed may soon try to raise the funds rate to 4%, 4.5%, or even 5%. But in some cases, Paulsen said on Tuesday. He may halt the rise of long-term bonds and refuse to follow the Fed’s lead,” he said in a note to clients on Monday.

The 10-year Treasury yield has traded over 4% in recent days, hitting the highest levels in more than a decade. Paulsen said with growing concern about the recession in 2023, it could be close to a ceiling.

“As the Fed tightens its monetary policy further, recession fears rise against inflation fears. Ultimately, as the Fed becomes more and more aggressive, the recession becomes a bigger concern than inflation, and bond buyers begin to outnumber bond sellers. added Paulsen.

— Jesse Pounds