Asia-Pacific stocks struggle to head ahead of BoJ rate decision

Asia-Pacific stocks struggle to head ahead of BoJ rate decision

Gaming stocks jump after China grants licensing approvals

Hong Kong-listed gaming shares rose after China granted license approvals for 88 games, including NetEase, Tencent Holdings and miHoYo, marking a further relaxation of Beijing’s gaming crackdown.

Actions of NetEase it jumped as much as 6.81% in early trading, reaching its highest level in more than four months. Tencent shares added 0.11%.

–Lee Yingshan

Bank of Japan likely to raise yield curve control another 50 basis points: UBS

Japan’s central bank is likely to widen its control range on the 10-year treasury yield curve by another 50 basis points to a range of 1% below and above its 0% target, the director said. UBS Global Wealth Management executive Tan Teck Leng.

“The scenario of a complete abandonment of the YCC is unlikely,” he told CNBC’s “Squawk Box Asia,” adding that a move would be “uncharacteristic” of the central bank.

“I think the easiest thing for them to do is remove the cap, let it find a fair value, but again, you’re dealing with big uncertainties, so we think, on average, they have to at least raise it to a cap of the 1.0%,” he said.

The performance in the 10-year Japanese government bonds it breached the upper ceiling of its band for the fifth session in a row on Wednesday morning ahead of the BOJ’s monetary policy announcement.

Japan core manufacturing orders for November fall more than expected

Japan’s private sector manufacturing orders for November fell 8.3% from the previous month, according to official data.

The drop was significantly higher than Reuters expectations for a 0.9% drop. On an annualized basis, manufacturing orders fell 3.7%.

Private sector machinery figures exclude orders for volatiles for ships and electric power companies.

—Lee Yingshan

CNBC Pro: Thinking of going back to big tech? This investor is wary of 2 stocks in particular

CNBC Pro: Morgan Stanley Says Cheaper EVs Are Coming, Names Global Stocks That Will Benefit

As electric cars become increasingly popular, a new manufacturing technique that could make them more affordable is drawing interest, according to Morgan Stanley.

Some automakers are outsourcing the process, which could benefit three major Asian auto parts suppliers, the Wall Street bank said.

CNBC Pro subscribers can read more here.

—Ganesh Rao

The stock markets close the day mixed, the Dow Jones falls almost 400 points

The Dow Jones Industrial Average Index fell late in the day, as shares of Goldman Sachs weighed on the stock index.

The Dow lost 391.76 points, or 1.14%, to close at 33,910.85. The S&P 500 fell 0.2% to 3,990.97. The Nasdaq Composite gained 0.14% to end the day at 11,095.11.

—Tanaya Machel

Bank of America sees a late start to the recession

A recession now likely won’t start until later in 2023 as consumer spending has been stronger than expected and the Federal Reserve eases the intensification of its interest rate hikes, according to Bank of America.

“We have delayed the timing of our outlook for a mild recession in the US economy by about a quarter given the durability in consumer spending due to strong labor markets, excessive saving, falling energy prices and tighter financial conditions. favourable,” the firm said in a client note. “That said, we believe headwinds will drive consumers to cut spending and increase the savings rate as the year progresses.”

That puts the recession into the second quarter, fueled by an investment-led slowdown trickling down to consumer spending.

After raising its benchmark interest rate by 4.25 percentage points in 2022, the Fed is expected to backtrack, with a 0.25 percentage point hike in February. That is forecast to be followed by additional quarter-point gains in March and May.

Rate cuts are not likely to come until 2024, the firm said.

—Jeff Cox

Goldman Sachs shares fall on lost earnings

Goldman Sachs shares fell 2.4% after the Wall Street investment bank shared fourth-quarter earnings results that missed analysts’ expectations on both headline and headline results.

The bank reported earnings of $3.32 per share on $10.59 billion in revenue. Consensus estimates called for earnings of $5.48 a share on revenue of $10.83 billion, according to analysts polled by Refinitiv.

Provisions for credit losses also slightly exceeded expectations.

—Hugh Son, Samantha Subin

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