Asia-Pacific shares trade higher, BOJ leaves yield range unchanged

Gaming stocks surged after China granted license approvals

Hong Kong-listed shares rose after China received license approvals for 88 gamesamong them NetEase, Tencent Holdings and miHoYo, marking a further easing of Beijing’s crackdown on gaming.

Shares of NetEase jumped as much as 6.81% in early trade, hitting its highest in more than four months. Tencent shares added 0.11%.

– Lee Ing Shan

Bank of Japan likely to lift yield curve controls by another 50 basis points: UBS

The Bank of Japan is likely to widen the range of control over the 10-year government bond yield curve by another 50 basis points to a range of 1% below and above its 0% target, UBS Global Wealth Management CEO Tan Teck Leng said .

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

“I think the easiest thing for them to do is to remove the cap, let it find a fair value – but then again there are very large uncertainties, so we think as a middle option they should at least raise it to a cap of 1.0%,” he said.

The yield on the 10-year Japanese government bonds broke above the upper ceiling of its range for the 5th session in a row on Wednesday morning ahead of the BOJ’s monetary policy announcement.

Japan’s core manufacturing orders for November shrank 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 larger than Reuters’ expectations for a 0.9% drop. On an annual basis, production orders decreased by 3.7%.

The private sector machinery data exclude variable orders for ships and power companies.

– Lee Ing Shan

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

CNBC Pro: Morgan Stanley says cheaper electric cars are coming — and points to global stocks that will benefit

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

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

CNBC Pro subscribers can read more here.

– Ganesh Rao

Stocks end the day mixed, with the Dow down nearly 400 points

The Dow Jones Industrial Average fell for the rest of 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 later onset of recession

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

“We are pushing back our outlook for a mild recession in the US economy by about a quarter, given the durability of consumer spending due to strong labor markets, excess savings, declining energy prices and easier financial conditions,” the firm said in a client note. . “However, we think headwinds will cause consumers to cut back on spending and raise their savings rates as the year progresses.”

That puts the recession in its second quarter, driven by an investment-led slowdown trickling down to consumer spending.

After raising its benchmark lending rate by 4.25 percentage points in 2022, the Fed is expected to ease back with a 0.25 percentage point increase in February. This is expected to be followed by further increases of a quarter point in March and May.

A rate cut likely won’t come until 2024, the firm said.

— Jeff Cox

Goldman Sachs shares fall on missed earnings

Shares of Goldman Sachs were down 2.4% after Wall Street investment bank shared its fourth-quarter earnings results, which are missing both top and bottom line analyst expectations.

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

Provisions for credit losses are also slightly above expectations.

– Hugh Son, Samantha Subin

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