Australia PMI, Japan Jibun Flash PMI, Lunar New Year holidays

New Zealand’s Auckland Airport passenger numbers reached 74% of infected levels in November

New Zealand’s Auckland Airport saw its passenger numbers for November reach 74% of the level seen in the financial year to June 2019, or a full year unaffected by the pandemic, according to the airport’s traffic update according to the monthly height.

International travelers accounted for 67% of the infected levels, the release said, adding that most of the international travel reported was short-haul flights from Australia and the Pacific Islands.

Demand for routes between New Zealand and North America has recovered to 86% of infected levels, including two additional locations in Texas (Dallas/Fort Worth) and New York.

– Jihye Lee

CNBC Pro: These 6 low-cost global companies are set to emerge, Bernstein said

Rising interest rates have big implications for heavily indebted companies, as they will have to incur higher debt through increased borrowing.

As interest rates continue to rise, analysts at Bernstein think stocks with low exposure to high debt should be higher.

The commercial bank named the global low interest rate with a credit rating of investment there may be higher.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Zip’s fingers rotate after the first move

Australian “buy now, pay later” company Zip fell more than 10% after a short rally following quarterly results.

Zip traded down 15%, a sharp reversal from earlier gains of more than 10% after posting 12% revenue growth.

The company said that “monthly cash flow is still decreasing and is expected to improve.” He said that the current cash and cash flow situation is sufficient to see the company through the creation of a sound financial system and expects to deliver a positive EBITDA in the first half of fiscal year 2024.

Next week: PMI, Australia and Singapore inflation reports, South Korea GDP

Here are some key economic events in the Asia-Pacific that investors will be watching closely this week.

Stock markets in China and Taiwan will remain closed until they resume trading on January 30.

On Tuesday, regional sales managers for Japan and Australia will focus on the fact that many markets are closed to celebrate the Lunar New Year. except for Australia, Japan and Indonesia.

Inflation news will be in focus on Wednesday as Australia and New Zealand release their consumer price estimates for the final quarter of 2022. Singapore will publish its inflation edition for December.

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Hong Kong markets are scheduled to resume trading on Thursday.

Fourth-quarter domestic output for South Korea and the Philippines will be published on Thursday, while the Bank of Japan will present a summary of its views at its latest monetary policy meeting in January. Japan also reports its producer prices on Thursday.

Japan’s headline CPI reading for the capital Tokyo will be a harbinger of where monetary policy is headed.

Australian producer price and trade data will also be reviewed ahead of the Reserve Bank of Australia meeting in the first week of February.

– Jihye Lee

Australia’s business climate worsened last month: NAB survey

National Australia Bank’s monthly business survey showed business conditions worsened for December with a reading of 12 points, down from November’s reading of 20 points.

The investigation revealed deteriorating business conditions, profits, and services, NAB said.

NAB Chief Economist Alan Oster said, “The main message from the December survey is that growth has slowed significantly in late 2022 while price and purchasing pressures have increased.”

Meanwhile, business confidence in December rose from 3 points to -1, an improved reading from -4 points seen in November.

– Jihye Lee

Japan’s major news agency records show second straight month

Japan’s Au Jibun Bank Flash Manufacturing Purchasing Managers’ Index in January was unchanged for a second straight month at 48.9, below the 50 mark that separates contraction and growth from the previous month.

The study “revealed the worst joint-strength in health [of] Japan’s manufacturing sector since October 2020,” said S&P Global.

Au Jibun Bank’s composite manufacturing index rose to 50.8 in January, higher than the reading of 49.7 seen in December.

Flash services business activity rose further from a reading of 52.4, higher than December’s reading of 51.1.

– Jihye Lee

CNBC Pro: Wall Street is excited about Chinese tech — and loves one mega-cap stock

After more than 2 years of deregulation and pandemic-induced declines, Chinese tech names are back on Wall Street’s radar, with one product standing out as the top choice for many.

Pro subscribers can read more here.

– Xavier Ong

It is likely that the Fed will discuss next week when to stop hikes, the newspaper says

Federal Reserve officials next week will almost certainly support another cut in interest rate hikes as they discuss when to end the rate hike altogether, according to the Wall Street Journal.

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The Federal Open Market Committee is set to meet Jan. 31-Feb. 1, and market prices at almost 100% chance of a quarterly increase in the benchmark rate of the central bank. Most notably, Fed Governor Christopher Waller said on Friday that he sees a 0.25 percent increase as the best for the upcoming meeting.

However, Waller said he does not think the Fed is emphasizing, and many other central bankers in recent days have supported the idea.

The Journal, quoting public comments from policymakers, said that reducing the pace of hikes could provide an opportunity to determine the impact of the current increase in the economy. The rate hike that began in March 2022 has resulted in an increase of 4.25 percent.

The stock market is now showing a quarterly increase in the next two meetings, a period of nothing, and will reach a half-quarter decline at the end of 2023, according to CME Group data.

However, many officials, including Governor Lael Brainard and New York Fed President John Williams, have used the term “stay on track” to describe the future policy direction.

– Jeff Cox

The Nasdaq is headed for back-to-back gains as tech stocks rise

The Nasdaq Composite rallied more than 2.2% in midday trading Monday, lifted by a tumbling tech stock.

The move included a technical weighted index going forward for a day of gains of more than 2%. The index ended 2.66% higher on Friday.

Rising semiconductor prices helped push the index higher. Tesla and apple, meanwhile, rose 7.7% and 3.2%, respectively, as China’s developing countries raised hopes of an improvement in their trade. Western Digital and Advanced Micro Devices rose about 8% each, when Qualcomm and Nvidia shed about 7%.

Information technology was the best-performing S&P 500 sector, gaining 2.7%. That’s in part because of the benefits in the explosive field. Communication services added 1.9%, boosted by likes Netflix, Meta Platform, Alphabet and A sports team.

– Samantha Subin

El-Erian says the Fed should have hiked by 50 basis points, calling the small increase a ‘mistake’

Prices have shifted from goods to services, Mohamed El-Erian said
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High inflation may have been a big deal in the past, but a shift to 25 sources at the next Federal Reserve policy meeting is a “mistake,” said Allianz Chief Economic Adviser Mohamed El-Erian.

“‘I’m in a very small camp that thinks they shouldn’t be down 25 points, they should be 50,'” he told CNBC’s “Squawk Box” on Monday. “They should take advantage of this growth opportunity that we are in, they should take advantage of the market, and try to strengthen the financial situation because I think we still have an inflation problem.”

He said inflation has shifted from goods to the services sector, but it could rebound sharply if energy prices rise as China opens up again.

El-Erian expects inflation to be around 4%. This, he said, will put the Fed in a difficult position whether they should continue to shrink the economy to reach 2%, or promise that level in the future and hope that investors have tolerance of 3% to 4% is close.

“That’s probably the best thing,” he said of the latter.

– Samantha Subin

Financial returns are imminent, according to Morgan Stanley

Financial returns are coming this year, says Morgan Stanley equity strategist Michael Wilson.

“Our view has not changed as we expect the path to earnings in the US to beat both consensus expectations and current prices,” he said in a note to clients on Sunday.

Some good developments have opened in recent weeks – such as the opening of China in progress and falling gas prices in Europe – and have helped some investors to look at market prospects positively.

However, Wilson advises that investors continue to run in equities, talking about price action as the main influence for this year’s conference.

He said, “The session is being conducted this year with a low and short margin.” “It also sees going strong in cyclical stocks related to defensives.”

Wilson based his prediction on the collapse of the border, but he believes that the case for this is growing. Many companies have already faced a decrease in their income, and the destruction of goods, the headcount is less productive.

“It’s just a matter of timing and magnitude,” Wilson said. this bear forest.”

-Hakyung Kim


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