Adani China returns from New Year, CSI 300, New Zealand trade

It could take a decade for China to catch up in advanced chip technology as the Netherlands and Japan join the U.S. in imposing restrictions, Daniel Newman, founding partner and principal analyst at Futurum Research, told CNBC “Street signs Asia“Monday.

The two advanced semiconductor equipment makers agreed on Friday to join the US in restricting exports of some chip-making machinery to China, Bloomberg reported.

One leading Chinese supplier is the Dutch firm ASML, which makes the deep ultraviolet (DUV) lithography systems needed to produce the most advanced chips.

Its CEO Paul Wennink said China accounts for about 15% of sales in 2022.

“The advanced lithography machines that ASML manufactures are some of the most advanced in the world. This is not something that another company can just start doing. It will probably take a decade if China really thinks about it,” Newman said.

– Sheila Chang

Shares of Adani Enterprises rose 10% after seeing sharp losses in previous sessions as its chief financial officer expressed confidence in its follow-on public offering, which is scheduled to close on January 31.

The stock is still down more than 20% in the first month of the year.

Adani Group Chief Financial Officer Jugeshinder Singh said on Monday that he was confident Adani Enterprises‘ the subsequent public offering will be fully registered.

The $2.5 billion secondary sales of shares were darkened by devastation of an estimated $48 billion as share prices of the conglomerate’s affiliates tumbled for a second straight session after short-selling firm Hindenburg accused the group of “engaging in a decades-long blatant stock manipulation and accounting fraud scheme “.

Singh said in an interview with CNBC affiliate CNBC-TV18 that the value of Adani Enterprises has not changed “simply because of” the volatility in share prices, adding that it instead lies in “its ability to incubate new businesses.”

He added that the Hindenburg report was “simply a lie” and that the timing of the report was “malicious”.

Adani Group published a long answer of more than 400 pages to the Hindenburg report at the weekend, which said it would exercise its rights to “seek legal remedies” to protect its stakeholders “before all appropriate authorities”.

Hindenburg on Monday morning called the group’s response “bloated” and said it “ignored every key allegation” against the conglomerate it had raised.

— Jihe Lee

A flurry of economic data will be released this week in the Asia-Pacific region as the US Federal Reserve begins its two-day FOMC meeting on Tuesday. The central bank will announce its interest rate decision on Wednesday when the meeting ends.

China’s National Bureau of Statistics released its purchasing managers’ index on Tuesday, with economists polled by Reuters expecting to see a reading of 49.8, just below the 50 mark that separates growth from contraction.

Printouts of Japan’s unemployment and industrial production are also scheduled for release on the same day. South Korea’s industrial production readings will also be released.

On Wednesday, Malaysia observes a market holiday while Indonesia is due to release its latest inflation data.

Australia’s building permit stamp and South Korea’s inflation data will be released on Thursday.

On Friday, Hong Kong will release its latest retail sales data.

— Jihe Lee

Oil prices could reach $100 a barrel in the second half of the year, according to Michael Tran of RBC Capital Markets.

“The bottom line here is that China is going to buy a lot of crude over the next few months,” he said.

Brent Crude oil futures last traded at $86.85 a barrel, while the U.S. West Texas Intermediate futures rose 0.09% to $79.75 a barrel.

Investors and OPEC+ will also be waiting to see if the EU embargo on Russian oil products, which starts this Sunday, will cause major disruptions. The oil cartel is not expected to make any real changes to its quotas or production guidelines at an upcoming meeting, Tran predicted.

– Lee Ing Shan

China’s CSI 300 rose 2 percent at the open, led by consumer cycles, basic materials and industrials, according to data from Refinitiv.

Mainland-listed shares of BYD jumped more than 6%, Lens technology gained more than 15% and Yunnan Energy New Material rose nearly 10%.

Contemporary Amperex Technology Co. Ltd gained 5.9% and Queichow Mutai increased by 1.65%.

— Jihe Lee

China’s CSI 300, which tracks the mainland’s largest listed stocks, is poised to enter a bull market as trading resumed later in the day.

The CSI 300 has climbed 19.18% from its lows seen on Oct. 31, according to data from Refinitiv. It closed its last trading session at 4,181.53 on January 20.

A commodity exchange is defined as a market period in which stocks are up at least 20% from their recent lows.

The ChinaAMC CSI 300 Index ETFwhich tracks the index’s performance, was last up 23% from its October lows.

All the major averages ended the week on a winning note on Friday.

For the session, the Nasdaq Composite jumped 0.95% to 11,621.71, while the S&P 500 gained 0.25% to close at 4,070.56. The Dow Jones Industrial Average added 28.67 points, or 0.08%, to end at 33,978.08.

— Samantha Subin

Consumer sentiment data from the University of Michigan for January was stronger than expected.

The January reading was 64.9, slightly above the consensus estimate of 64.6 from economists polled by Dow Jones. The index provides a quantitative assessment of current and future economic conditions.

— Alex Haring

Nearly two-thirds of the 13 stocks in the S&P 500 that hit 52-week highs in early Friday trading were also trading at all-time highs. The list expands from the focus on energy/materials/resources in recent days. One of the 13, Caterpillar, is also in the Dow Industrials.

• BorgWarner (BWA), highest since January 2022
• Las Vegas Sands (LVS), highest since June 2021
• Starbucks (SBUX), highest since Jan. 2022
• Ulta (ULTA), all-time high since 2007 IPO
• Winn (WYNN), highest since September 2021
• Marathon Petroleum (MPC), an all-time high, going back to the MRO spin-off in June 2011
• Arthur J. Gallagher (AJG), all-time high since 1984 IPO
• Chub (CB), all-time high
• Caterpillar (CAT), an all-time high until the 1929 NYSE listing
• General Electric (GE), highest since Nov 2021
• TransDigm Group (TDG), all-time high since 2006 IPO
• United on loan (URI), all-time high since 1997 IPO
• Steel dynamics (STLD), all-time high since 1996 IPO

Other notable peaks outside the 500:

• Churchill Downs (CHDN), highest since Oct. 2021
• Lennar (LEN.B), highest since January 2022
• NOVEMBER (NOV), highest since January 2020
• Axis Capital (AXS), highest since February 2020
• HEICO (HEI), all time since 1960’s IPO
• Knight-Swift Transportation (KNX), highest since January 2022
• Lincoln Electric Holdings (LECO), an all-time high since its 1995 Nasdaq listing
• Allegro MicroSystems (ALGM), highest since January 2022
• Honest Isaac (FICO), an all-time high since the 1986 NYSE listing
• Reliance on steel and aluminum (RS), an all-time high

— Scott Schnipper, Christopher Hayes

Tesla shares are up more than 33% this week, putting the electric vehicle stock on its best weekly performance since the week ended May 10, 2013, when it jumped 40.72%.

If Tesla closes at those levels, it will mark the stock’s second-best weekly performance ever. As of 12:40 p.m. EST, the stock was trading up about 33.8% on the week.

The gains in Tesla stock followed the company’s recent gains report that showed record revenue and profit. Shares jumped more than 11% on Friday.

The sharp rise in Tesla shares comes after shares tumbled 65% in 2022. and suffered their worst month yetquarter and year.

Earnings in Tesla also lifted the S&P 500’s consumer discretionary sector by more than 2%.