Hong Kong stocks tumble as China announces further Covid easing, trade data disappoints

Apple customers, NVIDIA may pay more for US-made chips: Analyst

Customers of Apple and NVIDIA may face high prices from Taiwan Semiconductor Manufacturing Co‘s Arizona mining company, as a strategist.

“Currency cuts will play a major role in helping to bridge the gap with the economy, but there will also be price increases for consumers,” said Abhinav Davuluri, Morningstar’s chief technology officer. , speaking on CNBC’s “Squawk Box Asia” Wednesday.

“Not only is it a small fab, which reduces the economy, it also happens in a very expensive area,” he said.

The US plant will be a small part of TSMC’s total capacity of 12 million wafers in 2020, according to a company press release.

TSMC has more than 50% of the global market share and produces high-end chips and the latest Apple products. Although TSMC does most of its manufacturing in Taiwan, US and European lawmakers have raised questions about supply in the event of a Chinese invasion.

– Sheila Chiang

Markets are becoming more balanced, but there is still uncertainty in China, UOB says

Dollar-yuan may stay below 7 for a 'short time,' says UOB

The market was very serious about China and its currency, but now it is more fair, said Peter Chia, chief FX strategist at UOB.

“Now you see that the pendulum has swung negative [stance]For now, I would say it’s a little bit more balanced,” he told CNBC’s “Street Signs Asia,” adding that doubts remain.

Going forward, the dollar-yuan may be the cause of the region in China instead of the US Federal Reserve, he said.

He added that he is cautiously watching for the Chinese yuan, but that the market should not underestimate the power of Chinese consumers.

“I think this will translate across the board,” he said. “There are a lot of headwinds coming from the western world, but if it is played well, I think China will be able to stop a lot of these headwinds.”

– Abigail Ng

China lifted negative tests for local travelers

Travelers passing through China will no longer need to show a negative Covid-19 test result, according to a release by the National Health Commission.

Areas not identified as high risk cannot stop operations or production, the notice said.

Asymptomatic Covid patients can also choose to stay at home for five days, he said.

– Evelyn Cheng

Hong Kong tech, travel stocks go ahead of China’s Covid producer

Unlikely to see a Chinese opening in the next six months: Hang Seng Bank

A full recovery in China is unlikely to be seen anytime soon, economist Dan Wang of Hang Seng Bank said on CNBC’s “Squawk Box Asia.”

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“We don’t know if … ‘return to normal’ can happen, in fact, in the next six months,” he said, referring to the lack of agreement on the implementation of the law between the departments and different regions.

“For example, like Taiyuan and Xi’an, their changes in the Covid policy are still behind what is happening in Beijing and Shanghai,” he said.

China's export numbers could worsen, economists say

India’s central bank raised rates by 35 basis points, in line with expectations

The Reserve Bank of India cut interest rates by 35 basis points following its December policy meeting, bringing interest rates to 6.25%.

That follows an increase of 50 basis points in September.

Inflation decreased to 6.77% in October of this year on an annual basis, down from 7.41% in September. That is still above the RBI’s inflation target of 4%.

– Abigail Ng

China’s recovery is a bigger driver for oil prices than the cap on crude, a Singaporean official said

China cannot take a 'one-fits-all' approach to Covid, says Singapore's foreign minister

China’s recovery will be a big driver for oil prices in Russia’s oil cap, Singapore’s foreign minister Vivian Balakrishnan told CNBC on Tuesday.

“I would expect to see a significant gap,” Balakrishnan said. “Now that has a deeper impact on the world economy, than the price of oil.”

China’s long-term strategy should focus on increasing vaccination rates, Balakrishnan said.

“You can open if you have a high vaccination rate. Therefore, I will look to see the efforts of the Chinese to promote vaccination among the elderly,” he added.

Read the full story here.

— Charmaine Jacob

Vingroup shares rose 5% as EV unit VinFast files to go public in the US

Shares of Vietnam-listed Vingroup rose more than 5% and are hovering around the highest level it has seen in five months after EV maker VinFast filed to go public in the US, .

VinFast, Vietnam’s only automaker, plans to start delivering its electric SUV to US customers by the end of this year.

In March, the company announced plans for a $2 billion facility in North Carolina.

– John Rosevear, Jihye Lee

China’s exports and imports fell more than expected

China’s dollar-denominated exports fell 8.7% in November on a year-over-year basis, falling short of expectations of a 3.5% decline, according to analysts polled by Reuters.

Imports in US dollar terms fell 10.6% for the month compared to a year ago, falling further than the 6% decline in a separate Reuters survey.

The country’s trade surplus came in at $69.84 billion, lower than the forecast for $78.1 billion.

– Jihye Lee

Hong Kong house prices fall to lowest in nearly five years, with more room to fall

Hong Kong property prices fell to nearly five-year lows as rising interest rates and a massive exodus of expat workers drove down prices in one of the world’s most expensive cities to live in. work and there is a chance of failure.

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Hong Kong’s home price index for October fell 2.4% to 352.4 compared to the previous month, marking the lowest level for the survey. since November 2017.

In addition, according to Natixis report, the city Property prices may drop 25% from their previous peak in 2021, before starting to cut losses.

“While the economy is weak both in Hong Kong and around the world, and the cost of borrowing is rising rapidly is the most important reason for the decline in property prices,” Nelson Wong, CEO director of research at brokerage firm Jones Lang LaSalle told CNBC.

— See Ying Shan

TSMC shares rose after Apple said it would use chips made by the Taiwanese company in the US

China is expected to see further declines in exports and imports

China’s trade data for November is expected to show further declines in exports and imports, according to a Reuters poll of economists.

Average forecasts predict that exports will fall 3.5% in November and year-on-year after falling 0.3% in October, imports are predicted to fall 6% after falling 0.7% last month.

The trade balance forecast in the US dollar will drop to $78.1 billion – smaller than last month’s $85.15 billion.

– Jihye Lee

CNBC Pro: ‘A gift to investors’: BlackRock says it’s time to rethink bonds

It is time to reconsider the chain, according to the BlackRock Investment Institute, which said that “the view of the fixed income is strong” now.

“High yields are a gift to investors who are hungry for income. And investors do not have to go through different risks to get it,” Philipp Hildebrand, vice president chair of BlackRock, and Jean Boivin, CEO of BlackRock. The investment company, wrote in a note last week.

They explained the best way to make money.

Pro subscribers can read more here.

– Xavier Ong

Australia’s economy grew at a slower pace in the third quarter

Australia’s economy grew by 0.6% from the previous quarter, government data showed – free estimates expected growth of 0.7% quarter predicted in a Reuters poll.

The most recent new housing stock showed an uptick from the second quarter’s expansion of 0.9% from the first three months of the year.

On an annualized basis, GDP in the third quarter added 5.9%, which the Australian Bureau of Statistics said reflects “the continued economic growth since the impact of the Delta outbreak in the quarter of September 2021.”

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He added, “Energy and domestic spending are driving growth.

The annual figure missed expectations in a separate Reuters poll for a 6.2% gain.

Australian dollars a little changed after the news S&P/ASX 200 0.7% decreased.

– Abigail Ng

CNBC Pro: UBS says shares in global airline set to rise by 55%

Shares of the global airline are expected to rise by 55% next year, according to UBS.

The investment bank raised its target after European airlines said it expected to see significant demand over the Christmas period.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Stocks ended lower, recovering from Monday’s losses

Stocks fell Tuesday, building on losses from the previous session.

The S&P 500 shed 1.44% to close at 3,941.26, while the Nasdaq Composite fell 2% to finish at 11,014.89. The Dow Jones Industrial Average dropped 350.76 points, or 1.03%, to settle at 33,596.34.

– Samantha Subin

Oil fell to its lowest level since December 27, 2021

Oil prices fell on Tuesday, with economic uncertainty falling even amid rising Russian oil prices and a possible boost to China’s recovery.

US West Texas Intermediate crude for January delivery fell more than 4% to $73.85 on Tuesday afternoon. Brent crude for February delivery fell 4.34% to $79.09 a barrel.

The US also said it sees oil production increasing next year, reflecting on its future after five months of decline. A monthly report from the Energy Information Administration said production is forecast to fall to 12.34 million barrels per day in 2023, compared to a daily record of 12.315 million barrels per day in 2019.

—Carmen Reinicke

Inflation is hurting the consumer economy and could bring a 2023 recession, Dimon said.

Dimon said in June that he was preparing banks for an economic “storm” caused by the Federal Reserve and Russia’s war in Ukraine.

Al Drago | Bloomberg | Getty Images

American consumers are still doing well and supporting the US economy, but that could change next year, as JPMorgan Chase CEO Jamie Dimon.

Consumers have $1.5 billion in savings from the disease incentive program and are spending 10% more in 2021, he said Tuesday on CNBC’s “Squawk Box.”

Dimon said, “Inflation is destroying everything I said, and the billion and a half dollars will be gone by the middle of next year.” “When you look out, those things can really damage the economy and lead to the soft or hard recession that people are expecting.”

Dimon spoke about cryptocurrencies, the need for fuel and other topics during the interview.

-Hugh Son

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