Financial basis

Hong Kong shares fall 2%, dragging Asian mixed trade losses after John Lee speech

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

It is still too early to buy both real estate stocks and physical properties in Hong Kong, said William Ma, chief investment officer of GROW Investment Group.

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

Moreover, Ma expects property prices and stocks to fall due to weak demand, adding that what Hong Kong needs is “a real economic rebound.”

Ma also said Hong Kong’s financial importance will remain and Chinese companies still prefer to list in Hong Kong markets.

— Lee Ying Shan

Hong Kong Movers: Tech, EV, Macau Casino Stocks Fall; real estate stocks lose previous gains

Shares of Hong Kong-listed tech companies and electric vehicle makers continued to trade lower during Hong Kong leader John Lee’s policy speech, dragging the overall index lower alongside casino stocks from Macau.

Xpeng Motors fell 8.24%, bilibili fell 4.2%, and Meituan also fell 3.64%. Tencent and Ali Baba also fell more than 2.5%.

Macau casino stocks also fell, with MGM China fall of 3.84% and Wynn Macau down 4.15%.

Meanwhile, real estate stocks pared their earlier gains. Country Garden last rose 0.7% after rising more than 4% before Lee’s speech.

Land and overseas investment in China rose 2.25% after rising 5% earlier.

– Jihye Lee

Kakao co-CEO steps down after massive outage locks out 53 million users

A top Kakao Corp executive will step down after a fire at a data center caused a massive outage over the weekend and disrupted services for all 53 million of its email users worldwide.

Co-CEO Namkoong Whon apologized after the outage and announced he would step down.

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

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

– Jihye Lee

Hong Kong property stocks rise ahead of annual policy speech

Shares of Hong Kong-listed property companies rose in morning trading ahead of Chief Executive John Lee’s policy speech.

Land and overseas investment in China increased by 5%, Active CK gained 2.75% and sino land added 2.5%. country garden also added 4.26% ahead of Lee’s speech.

Local media in Hong Kong report that foreign owners may receive buyer’s stamp duty discounts.

—Abigail Ng

Apple supplier stocks fall on iPhone 14 Plus production cut report

Shares of Apple suppliers in Asia fell after the technology company reportedly asked a manufacturer in China to halt production of an iPhone 14 Plus component as Apple reassesses demand for the product.

The information reported that two other suppliers who assemble modules from this component have also significantly reduced production.

LG Innotek and SK Hynix in South Korea lost around 2%, while Japan TDK Company and Murata Manufacturing lose more than 1% each.

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

—Abigail Ng

CNBC Pro: Goldman Sachs Outlines Four Economic Scenarios and Predicts Gold’s Performance in Each

It’s been a turbulent year for gold, with the precious metal “pulled between growth and inflation risks, rising real rates and dollar strength,” Goldman analysts wrote in an 11 october.

“In our view, there remains a great deal of uncertainty around the future path of inflation, growth, rates, and central bank (CB) reaction functions in the United States.”

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

CNBC Pro subscribers can learn more here.

U.S. crude futures rise $1 a barrel on expectations that Biden will release oil from the Strategic Petroleum Reserve

future of West Texas Intermediate Crude rose by about $1 or 1.33% and the futures contracts of Crude Brent rose $0.83, or 0.92%, as the Biden administration is expected to release more oil from the U.S. Strategic Petroleum Reserve.

The plan could be announced as early as Wednesday, sources told CNBC.

The move aims to extend the current SPR delivery schedule, which began this spring, until December, the sources said.

–Kayla Tausche, Jihye Lee

RBNZ expected to achieve ‘giant hike’ of 75bps in November: ANZ

ANZ economists expect the Reserve Bank of New Zealand to hike 75 basis points each at its next meetings in November and February.

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

ANZ said the Reserve Bank of Australia would likely take a more conservative path than the RBNZ, resulting in a “much wider policy differential going forward in 2023”.

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

– Jihye Lee

Apple stumbles upon report of production cut

Apple shares fell and briefly turned negative after a report from The Information that the tech giant was cutting production of its new iPhone 14 Plus.

The move by Apple, the biggest US stock, took the major averages back near their lows for the day, although they have since recovered some of that ground.

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

The Fed is expected to hike another three-quarters of a percentage point next month, but the central bank could reach its limit in dictating long-term interest rates, according to Jim Paulsen of the Leuthold Group.

“There is considerable precedent in past tightening cycles for the Fed to be closed by the bond market ‘flashing’ first. The Fed may soon attempt to raise the funds rate to 4%, 4.5% or even 5 % point, longer-term bonds might just stop rising and refuse to follow the Fed’s lead,” Paulsen wrote in a note to clients on Tuesday.

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

“Each time the Fed tightens monetary policy further, recession fears increase relative to inflation fears. Ultimately, as the Fed becomes more and more aggressive, recession becomes a bigger concern than inflation and bond buyers are starting to outnumber bond sellers, which is to say the bond market is blinking,” Paulsen added.

—Jesse Pound