Asia markets fall as Japan’s core inflation marks highest in over 40 years

Taiwan Semiconductor Manufacturing Co., Ltd. is in talks with suppliers to build its first European chip plant in Dresden, Germany, the Financial Times reported, citing people familiar with the matter.

The company will reportedly send executives to Germany to discuss the level of government support in the local supply chain. The plant will aim to focus on 22nm and 29nm chip technology, the report said.

Shares of the Taiwan-listed company were down 2.8% in Asian trading on Friday.

– Jihye Lee

Taiwan Semiconductor Manufacturing Co., Ltd. is in talks with suppliers to build its first European chip plant in Dresden, Germany, the Financial Times reported, citing people familiar with the matter.

The company will reportedly send executives to Germany to discuss the level of government support in the local supply chain. The plant will aim to focus on 22nm and 29nm chip technology, the report said.

Shares of the Taiwan-listed company were down 2.8% in Asian trading on Friday.

– Jihye Lee

Secretary of the United States Antony Blinken and his Chinese counterpart Wang Yi spoke and discussed the war between Russia and Ukraine, the situation and the Covid relationship between the US and China.

“The secretary discussed the importance of maintaining an open line of communication and maintaining US-PRC relations,” US spokesman Ned Price said in a statement.

“It’s very important to keep the channels of communication open,” Blinken said in a post on Twitter.

A reading of the meeting from China’s foreign ministry added that the two also discussed the issue of Taiwan.

— See Ying Shan

Singapore’s inflation rose 5.1% in November on an annual basis, unchanged from the October figure.

The reading was higher than estimates in a Reuters poll predicting a 5% increase, driven by moderate increases in services and electricity bills, according to the Ministry of Trade and Industry.

It is expected to pick up in the first half of 2023 before “declining further” the ministry said.

In Malaysia, its core CPI for November remained unchanged at 4% compared to a year ago, beating expectations of 3.9%.

— See Ying Shan

The Bank of Japan has announced the upcoming policy changes during the October monetary policy meeting, minutes from its meeting on October 27 and 28 showed.

One person said it is “important to continue to evaluate how future exit plans will affect the market and whether market participants will be adequately prepared for them,” the statement said.

While the central bank’s governing body has expressed the need for a long-term dovish stance, citing the need to “address the effects of monetary easing,” Sec. those showed up.

“It is important to analyze the impact of high prices on family behavior and wages in moderation,” he said.

– Jihye Lee

China plans to remove requirements for foreign travelers next month, Bloomberg reported, citing sources familiar with the matter.

Foreign visitors to China will only need to complete a three-day medical examination, which has not yet been detailed, the report said.

This will replace the guidelines that will be maintained in the quarantine hotel or remote area.

Travelers are now required to self-isolate for five days in a hotel or quarantine facility, followed by three days of home isolation.

– Lee Ying Shan, Evelyn Cheng

Oil prices rose on expectations that Russian oil exports could fall by 20% in December, according to calculations by Reuters.

Brent crude futures rose 0.72% to $81.56 a barrel, while US West Texas Intermediate futures traded up 1.01% at $78.27 a barrel.

The expected decline in crude exports is seen as adding pressure to rising oil prices as part of the US prepares for heavy rains.

– See Ying Shan

Japan’s core consumer price index rose 3.7% in November on an annual basis, marking the fastest pace since December 1981, when it peaked at 4%.

The reading was in line with estimates from analysts polled by Reuters, coming after a 3.6% gain last month.

The reading remains above the Bank of Japan’s inflation target of 2%. The national CPI for all items stood at 3.8%.

— See Ying Shan

Automation and cost reductions in many businesses during the recession will boost profits at two Silicon Valley companies, according to technology fund manager Jeremy Gleeson.

Gleeson, who manages a $1.5 billion technology fund at AXA, believes that if there is a recession next year, then “companies will want to do more with less.”

“One of the ways they can do that is by using better technology to improve the productivity of their existing employees,” he said and named the two that will benefit from this process.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Stocks closed lower Thursday, after bouncing back in a short session, as the year-end sell-off resumed on Wall Street.

The Dow Jones Industrial Average fell 348.99 points, or 1.05%, after hitting as high as 803.05 points earlier in the session. The S&P 500 declined 1.45%, while the Nasdaq Composite was down 2.18%.

—Sarah Min

Growth technology stocks may not bounce back after a “pivot” in interest rates from the Federal Reserve, according to one market analyst.

CNBC Pro subscribers can read why Peter Toogood, chief investment officer at Embark Group, believes stocks like Peloton is a “good fool” business for investors.

— Ganesh Rao