February 7, 2023

Asia Pacific markets are mostly lower as investors digest Chinese economic data

Goldman Sachs: China’s “exit wave” on reopening is negatively affecting the economy

Economists at Goldman Sachs said in a report that the “exit wave” that China witnessed during the process of reopening its doors led to a significant decline in the economy.

“The current wave of exits on the back of China’s faster-than-expected reopening has taken a heavy toll on economic activity in recent months, due to rising infections, temporary labor shortages and supply chain disruptions,” it said in a report. .

“It is very surprising, in our opinion, that the figures reported for December were not worse,” the economists said.

– Jihe Lee

Credit Suisse says iron ore prices will peak at around $130 to $140 this year.

Iron ore prices are expected to range between $130 and $140 as traders focus on reopening China, said Sol Kavonic, head of energy and resources research at Credit Suisse.

“We expect prices to be in the $130 to $140 range as prices kind of wind down and hit the highs of this year,” he said.

While the strength in iron ore demand in the past few weeks has been supported by speculative and holiday buying, he said markets are currently watching how China reopens and any infrastructure stimulus rolls out.

He said that these measures “will support this demand for iron ore throughout the current year until next year.”

Australian mining giant Rio Tinto Published fourth quarter production results which slightly beat estimates.

Real focus [of] Rio has been on iron ore, which has been supporting the entire sector over the past few months and which was a call that finally came out good at the end of last year and early this year,” he said.

Rio TintoEgypt’s shares were last traded down by 1.11%.

– Lee Ying Chan

China’s retail sales beat estimates, and the economy expanded more than expected

China’s retail sales for December It beat estimates, falling just 1.8% year-on-year, much better than the 8.6% decline expected in a Reuters poll.

Industrial output also grew by 1.3% in December, above expectations for a 0.2% increase.

In the fourth quarter, the Chinese economy expanded 2.9% year on year, better than the expected growth of 1.8%. While the quarterly growth was flat, it still beat expectations for a contraction of 0.8%.

Despite the better-than-expected data, the offshore Chinese yuan weakened sharply from 6.7403 to 6.7563 against the US dollar shortly after the release.

Alibaba shares rose after Ryan Cohen acquired a stake in the company

Alibaba shares rose after The Wall Street Journal reported that Ryan Cohen built a stake in the company “worth hundreds of millions of dollars”.

The newspaper said Cohen, who founded online pet retailer Chewy and is also the chairman of GameStop, is privately pushing Alibaba to speed up and strengthen its share buyback program.

Hong Kong-listed Alibaba shares rose 2% in the first hour of trading. The stock has since pared gains to trade almost unchanged.

– Jihe Lee

China’s Liu He meets with US Treasury Secretary Janet Yellen

China’s Ministry of Commerce said in a statement that US Treasury Secretary Janet Yellen is scheduled to hold a meeting with Chinese Vice Premier Liu He on the sidelines of the World Economic Forum. statment.

The ministry said the two sides will hold a meeting to “strengthen coordination of macroeconomic and fiscal policy.”

The meeting will take place in Zurich on January 18, according to the statement, adding that the two sides will discuss the implementation of the agreements reached between US President Joe Biden and Chinese President Xi Jinping late last year in Bali, Indonesia.

This sit-down marks the first face-to-face meeting between Yilin and Liu.

separately , Politico It was reported that US Secretary of State Anthony Blinken will meet with newly appointed Chinese Foreign Minister Chen Gang in Beijing on February 5-6, citing Washington-based diplomats familiar with the matter.

– Jihe Lee

Singapore’s non-oil domestic exports fell more than 20% in December

Singapore’s non-oil domestic exports fell 20.6% in December year on year, another drop from a 14.7% drop in November.

The sharp decline was mainly driven by exports to China, Indonesia and Hong Kong, according to the government statement. It added that exports to South Korea and Japan rose.

The country’s total trade was down 7.7% in December compared to a year ago – with exports down 7.1% and imports also down 8.2%.

Jihe Lee

CNBC Pro: This Under-the-Radar Global Carbon Capture Stock Could Soar 65%, Investment Banks Say

Shares of the under-the-radar carbon capture company are expected to rise 65% on increased global demand for emissions-reducing technology, according to investment bankers’ analysis of the stock.

The company’s latest innovation, unveiled last week, could lower the energy needed for carbon capture and improve the company’s profitability in the future, according to analysts at a German investment bank.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Where the major indices stand coming in the first two weeks of 2023 trading

As the first two weeks of 2023 trading end, the three major indices are up so far for the year.

the NASDAQ Composite leads the way, adding 5.9% as investors bought battered technology stocks on rising hopes of an improved holdings growth landscape. the Standard & Poor’s 500 And daw It was followed by gains of 4.2% and 3.5%, respectively.

– Alex Haring

Stock futures open lower

Stock futures fell despite the market emerging from a winning week.

Futures contracts linked to the Dow Jones fell 0.1%. S&P 500 and Nasdaq-100 futures fell 0.2% and 0.4%, respectively.

– Alex Haring