China Covid relaxation, Hong Kong stocks rise

Anwar’s choice as deputy prime minister contradicts campaign message: BowerGroupAsia

Malaysian government not in 'strongest position' to intervene in court: consultancy firm

Malaysian Prime Minister Anwar Ibrahim and his Pakatan Harapan coalition have “contradicted their anti-corruption campaign message” by appointing Ahmad Zahid Hamidi as one of his deputy prime ministers. two, according to Adib Zalkapli, director of BowerGroupAsia.

Hamidi faces 47 charges of corruption and money laundering.

“The optics are not going to be good for the government with the deputy prime minister going back to court to face the charges,” Adib told CNBC’s “Squawk Box Asia.”

But he said the reality is that the coalition government needs UMNO and Barisan Nasional — led by Hamidi — on its side if it wants to “survive at least for the next year,” he added.

Anwar announced his cabinet on Friday evening. Market reaction in Malaysia was somewhat negative, with the KLCI index down 0.62% in the Asian afternoon.

— Abigail Ng

Indonesia’s GoTo has lost nearly 70% of its valuation since its IPO in April

Indonesia’s GoTo Group – the merger of giant Gojek and e-commerce marketplace Tokopedia – has lost 68.5% of its initial value of 400 trillion rupiah ($28 billion) since its initial public offering on month of April.

On Thursday, major pre-IPOs such as Alibaba and SoftBank opted not to launch a secondary offering after the Nov. 30 deadline, sending the stock down 7%.

The companies agreed to an eight-month lock-up period to prop up GoTo’s stock price after their initial public offering.

Its share price continued to fall in Monday’s session, with the company’s valuation around 126 trillion rupiah, according to CNBC calculations. GoTo shares have been down for the year, losing 68% of their value.

– Sheila Chiang

Australia expected to raise 25 basis points: Reuters poll

Australia’s central bank is expected to raise interest rates by 25 basis points to 3.1% on Tuesday, according to economists polled by Reuters.

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This is the eighth rate hike by the Reserve Bank of Australia this year, and the third consecutive increase of 25 basis points since October.

In a statement after the November meeting, the RBA said that “the full effect” of the rate hike is still to come.

Meanwhile, Matt Simpson, senior market analyst at City Index, said there was a possibility of a pause in future rate hikes.

“Certainly, the suspension business is growing,” he said. “Some measures of inflation expectations are moving lower, and the monthly inflation print indicates that inflation has picked up.”

Inflation in Australia remains well below the RBA’s target of between 2% and 3%, although it eased slightly in October, according to the price index. monthly customer.

— Charmaine Jacob

Morgan Stanley upgrades China stocks to overweight

Strategists at Morgan Stanley raised their recommendation on Chinese stocks to overweight, according to a Sunday note.

The update marks the end of the company’s two-year stand on Chinese growth, said strategist Laura Wang.

Morgan Stanley noted several factors that have seen “meaningful positive progress” since November, including what the company sees as a “confirmed path to a final post-Covid reopening.”

— Michael Bloom, Jihye Lee

Hong Kong movers: Chinese tech companies leapfrog and reopen

Chinese technology, consumer and travel-related companies listed in Hong Kong saw big gains in early trading after some cities in China saw the easing of Covid restrictions.

Tencent gained 5.5% and Meituan 3.5%, while Alibaba jumped 4.72% and Xiaomi added 7.31%. EV stocks like Li Auto jumped 9.19% and Nio rose 11.5%.

Meanwhile, Hong Kong casino stocks also jumped, with MGM China up 12.44%, Wynn Macau up 12.35% and Sands China adding 7.5%. Galaxy Entertainment changed to +3.61%. SJM Holdings changed to +4.82%.

Hotpot restaurant operator Help me It rose 15%, and airline shares also emerged. China Southern Airlines SY China Eastern Airlines each rose more than 5%, while Air China gained 4%.

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The broader Hang Seng index rose 3.21%.

— Abigail Ng, Jihye Lee

China’s job index is the lowest it has been in six months, an independent survey said

The Caixin/S&P Global Services Purchasing Managers Index for November came in at 46.7, representing the lowest reading in six months.

Printing also marked the third straight month of declines in output and new jobs, following October’s reading of 48.4, while September’s print reading was 49.3.

PMI readings are sequential and reflect monthly changes in business activity. The 50 mark separates growth from contraction.

“The rate of decline was generally strong, but remained weaker than the fall seen during the large wave of Covid-19 cases from March to May,” said Caixin in the release.

“Efforts to contain the spread of Covid-19 despite a surge in the number of cases in recent weeks have weighed on service sector activity and consumer demand across China during the month of November,” he added.

China’s official non-manufacturing PMI released last week stood at 46.7, the lowest since April 2022.

— Abigail Ng

The Chinese yuan is strengthening on reopening prospects

The Chinese currency has strengthened to about 7 against the US dollar after the latest report that signaled further relaxation of the Covid policy in China.

The offshore yuan traded at 6.9861 against the greenback, firming above 7 levels for the first time since mid-September.

Beijing and Shenzhen are taking steps to ease testing requirements and quarantine rules even as the number of daily cases hovers near record highs.

The latest action comes about a week after public unrest erupted due to draconian measures in various parts of the country.

— Jihye Lee

Oil futures rise 2% after OPEC+ holds and China reportedly eases some Covid restrictions

Chinese markets will halt trading for 3 minutes on Tuesday as the country mourns its former leader

CNBC Pro: Money managers name two global traders who are about to ‘dominate’

Veteran Schroders fund managers have named two global traders that are about to ‘dominate’ their sector.

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Andrew Brough, who manages the Schroder UK Mid Cap Fund, said the two conservatively managed companies were taking part in the pre-recession market by quietly acquiring underperforming competitors at lower prices. easy.

One of those stocks is up 30% this year while the benchmark is down 29%.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Stock futures fall, stocks rise on warmer-than-expected jobs data

Stock futures fell as funds rose in response to the 8:30 a.m. jobs data that came in stronger than economists had expected.

Here’s how each of the major futures and outstanding bond yields moved in the 30 minutes leading up to and following the data release:

CNBC Pro: Goldman Sachs updates global tech giant, says stock could rise as much as 90%

Goldman Sachs sees an opportunity in electric vehicles that is on an “upward trend.”

This trend will accelerate as EVs become “more technologically advanced” and easier to build, Goldman analysts said in a Dec. 1 report.

This is designed to benefit from global stocks, according to Goldman, which gives stocks up to 90% of the bull case for the company.

CNBC Pro subscribers can read more here.

— Weizhen Tan

US payrolls jumped 263,000 in November

Job growth was stronger than expected in November despite the Federal Reserve’s efforts to cool the labor market.

Private payrolls increased by 263,000 last month while the unemployment rate was unchanged at 3.7%, according to the Labor Department on Friday.

The number of wages was expected to jump by 200,000 more jobs, according to the consensus estimate from Dow Jones. The unemployment rate is expected to remain at 3.7%.

Stock futures fell after the earnings release.

— Sarah Min


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