Asia-Pacific markets fell mainly after investors digested Chinese economic data


Goldman Sachs: China’s reopening ‘exit wave’ is hurting the economy

A “wave of exits” during China’s reopening process has dragged the economy down significantly, Goldman Sachs economists said in a report.

“Amid China’s faster-than-expected reopening, the ongoing ‘wave of exits’ has hit economic activity hard in recent months due to rising infections, temporary labor shortages and supply chain disruptions,” the report said. .

“In our opinion, it is surprising that the figures reported for December are not worse,” the economists said.

– Jihye Lee

Credit Suisse reports that iron ore prices will reach a peak of $130-140 this year

Saul Kavonic, Head of Energy and Resources Research at Credit Suisse, forecast iron ore prices to be between $130 and $140 as traders focus on China’s reopening.

“We expect $130-$140 to be where prices end this year and move up,” he said.

While iron ore demand has been boosted by speculative buying and holiday-period buying in the past few weeks, he said markets are now watching how China’s reopening and any infrastructure stimulus plays out.

According to him, these measures “will continue the demand for iron ore during this year until next year”.

Australian mining giant Rio Tinto reported fourth-quarter production results that slightly beat estimates.

“Real focus [of] “Rio has been on iron ore, which has been supporting the whole sector for the last few months, it was a call that finally came good late last year and early this year,” he said.

Rio Tinto‘s shares were last down 1.11%.

– Lee Yingshan

China’s retail sales beat estimates, economy expands more than expected

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

Industrial production also rose 1.3% in December, beating expectations for a 0.2% increase.

China’s economy expanded 2.9% year-on-year in the fourth quarter, better than the 1.8% growth expected. While quarterly growth was flat, it still beat expectations for a 0.8% contraction.

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

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

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

Cohen, who founded online pet retailer Chewy and is also chairman of GameStop, is privately pushing Alibaba to accelerate and increase its stock buyback program, the Journal reported.

Alibaba shares in Hong Kong rose 2% in the first hour of trading. The stock has since pared its gains to trade roughly flat.

– Jihye Lee

Chinese leader Liu He will meet with US Treasury Secretary Janet Yellen

US Treasury Secretary Janet Yellen will hold a meeting with Chinese Vice Premier Liu He as part of the World Economic Forum.

The ministry said that both people will hold a meeting to “strengthen coordination of macroeconomic and financial policy”.

According to information, the meeting will take place in Zurich on January 18, and the implementation of the agreements reached between the US President Joe Biden and the Chinese President Xi Jinping at the end of last year in Bali, Indonesia will be discussed.

The sit-down meeting will be the first face-to-face meeting between Yellen and Liu.

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

– Jihye Lee

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

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

According to the government, the sharp decline was mainly due to exports to China, Indonesia and Hong Kong. Exports to South Korea and Japan have increased.

In December, the country’s total trade decreased by 7.7% compared to a year ago – exports decreased by 7.1% and imports decreased by 8.2%.

Jihye Lee

CNBC Pro: Investment banks say this under-the-radar global carbon sequestration stock could grow by 65%

Shares of the under-the-radar carbon capture company are expected to rise 65% on rising global demand for emissions-reduction technology, according to investment banks that analyze the stock.

The company’s latest innovation, revealed last week, could cut the energy needed to capture carbon and boost the company’s profitability in the future, according to analysts at the German investment bank.

CNBC Pro subscribers can read more here.

– Ganesh Rao

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

In the first two weeks of 2023 trading, the three major indices have risen for the year to date.

The Nasdaq Composite led the way, adding 5.9% as investors bought battered tech stocks on rising hopes of an improving outlook for growth holdings. The S&P 500 and Dow followed by gaining 4.2% and 3.5% respectively.

– Alex Harring

Stock futures open lower

Stock futures were lower despite a winning week for the market.

Dow futures fell 0.1%. S&P 500 and Nasdaq-100 futures fell 0.2% and 0.4%, respectively.

– Alex Harring



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