Hong Kong shares rose 2%; China reports inflation data in line with expectationsThank you for reading this post, don't forget to subscribe!
Chipmaker TSMC says November net income jumped 50% from a year earlier
Hong Kong movers: Property and tech stocks rise on reopening optimism
CNBC Pro: Wall Street Says A Recession Is Coming. An investment professional names his favorite stocks to last him
Wall Street professionals are increasingly sounding the alarm about a looming recession.
As economic growth slows and inflation remains higher for longer, how should investors position themselves? Veteran investor Nancy Tengler shares her favorite dividend stocks with CNBC.
Professional subscribers can read more here.
— Zavier Ong
There is confusion and optimism about China’s move away from zero Covid: British Chamber of Commerce
Beijing’s “U-turn” on Covid policies is causing both confusion and optimism, said Stephen Lynch, managing director of the British Chambers of Commerce in China.
“There’s a lot of optimism and hope for 2023, but there’s a huge amount of confusion,” he told CNBC’s “Squawk Box Asia,” describing the departure from strict Covid rules as happening “almost overnight.”
He said there could still be “huge discrepancies” between local policies and central government rules and people remained concerned about falling ill.
“One thing is very clear that Covid is already here. Covid is quite common here in Beijing. And I think that brings a whole new set of challenges to what China is going to face,” he said.
— Abigail Off
Credit Suisse says inflation is not yet a problem in China
Inflation in China is likely to remain below 3% for the next 12 to 18 months, and the central bank is comfortable with that range, according to Jack Siu, chief investment officer for Greater China at Credit Suisse.
“We don’t think CPI is a problem in China, in fact it will remain stable in that 1% to 3% range for the foreseeable future,” he told CNBC’s “Street Signs Asia.” Inflation jumped in many economies, but consumer prices in China remained subdued due to weak demand.
But China is likely to see a “resurgence in consumer activity” in the next six months as people get used to living with the virus after some back-and-forth in reopening the economy, Siu said.
“In the second quarter, we expect GDP to grow to 6.1% – partly these are main effects, partly because people are living more normally,” he said.
— Abigail Off
China’s producer prices fell in November, while consumer prices rose
China’s producer price index fell 1.3 percent in November from a year ago, extending its slide after a 1.3 percent drop in October and slightly beating forecasts for a 1.4 percent contraction in a Reuters poll.
The country’s consumer price index rose 1.6% in November on an annual basis, in line with expectations and down from October’s reading of 2.1%.
The onshore and offshore Chinese yuan strengthened to around 6.94 to the dollar shortly after the release of the economic data.
— Lee Ying Shan
CNBC Pro: These 4 global consumer tech stocks are poised to gain as China reopens, HSBC says
Some global consumer technology companies could gain as China eases some Covid-19 restrictions, and shares of four firms could rise more than 40%, according to HSBC.
The Asia-focused bank said a faster-than-expected recovery in consumer electronics in the coming months would benefit these companies.
– Ganesh Rao
South Korea reported a smaller current account surplus for October
South Korea posted a current account surplus of $880 million in October, down from $1.6 billion in September.
Direct investment assets in South Korea increased by $2.75 billion, compared to $4.74 billion a month ago. Direct investment liabilities increased from $430 million to $810 million.
South Korea reported a current account surplus for the year, excluding the months of July and August. A current account surplus shows that a country sells more to the world than it buys outside its borders.
— Lee Ying Shan
Stocks end higher, S&P 500 snaps 5-day losing streak
Stocks closed higher, with the S&P 500 snapping its longest losing streak since October.
The S&P added 0.75% to end at 3,963.51. The Dow Jones Industrial Average gained 183.56 points, or 0.55%, to settle at 33,781.48, while the Nasdaq Composite rose 1.13% to end at 11,082.00.
— Samantha Subin
Interest rates on 30-year fixed-rate mortgages are falling
Home financing costs fell for a fourth week in a row, according to Freddie Mac.
The average weekly rate on a 30-year mortgage is now 6.33%, down from 6.49% last week. In the past month, the interest rate on these loans has fallen by about 75 basis points: on November 10, the average interest rate on a 30-year fixed mortgage was 7.08%.
Even with the short-term decline, home loan financing costs are up significantly from a year ago. At this time last year, the average 30-year mortgage rate was 3.1%.
Despite the drop in interest rates, the demand for home loans continues to decline. Volume of mortgage application fell 1.9% last week from the week before, according to the Mortgage Bankers Association.
— Darla Mercado, Diana Olick
Part of the yield curve is now the most inverted since 2001
The inversion of the 3-month and 10-year Treasury yields is now the deepest since January 2001 at nearly 90 basis points, according to CNBC data. The short end of the curve jumped to 4.30% from just 0.05% earlier in the year as traders priced in higher interest rates.
The yield curve inverts when shorter-term government bond yields rise above longer-term yields. Many economists view the 2-year 10-year portion of the yield curve as more predictive of a potential recession.
Kathy Wood pointed that part of the yield curve, which is the most upside since the early 1980s. The popular investor said the bond market is signaling the Federal Reserve is making a “serious mistake” with its massive rate hikes.
— Yun Li
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