Hong Kong Stocks Up 3% as Tech Stocks Rise; China’s activity data disappoints

Fertilizers key to reviving Black Sea grains deal, expert says

A greater focus on fertilizers will help bring down the global cost of food and secure the extension of the Black Sea deal, said Michael Vatikiotis, senior adviser at the Center for Humanitarian Dialogue.

He explained that 70% of fertilizer production facilities in Europe are inactive due to a lack of ammonium nitrate, of which Russia produces a quarter of the world’s production.

“I think what Russia is looking for is greater concern from the international community for the demand for fertilizers, so that they can somehow implement this deal,” Vatikiotis said, who added that more emphasis needs to be placed on fertilizers to bring down the global cost of food.

— Lee Ying Shan

Japan’s monetary policy will not change for the next 9-12 months (Monex Group)

Japan's monetary policy is not

The Bank of Japan will remain a “bastion of stability” for nearly another year as the output gap in the economy remains, Monex Group’s Jesper Koll told CNBC after Japan released its output estimates. third quarter gross domestic.

He said the GDP figure, which beat expectations, confirms “how negatively sensitive the Japanese consumer is” in the current environment.

Beyond the next 12 months, the central bank will have to be careful about whether the U.S. economy ends in a soft landing or a hard landing, Koll said.

He added that he is monitoring whether the Japanese government is able to come up with a structural industrial policy that encourages the business community to engage in its own investment spending.

—Abigail Ng

There’s huge value in some Chinese tech stocks, says Primavera Capital

Shares of major Chinese tech companies are currently “so depressed” and “really cheap,” said Fred Hu, founder and chairman of Primavera Capital.

The Hang Seng Tech index in Hong Kong is down more than 30% year-to-date, although the index has rebounded in recent weeks.

The Chinese government’s relentless crackdowns and zero Covid policy have undermined the confidence of tech entrepreneurs and investors, but there is “tremendous value” in some tech stocks, Hu said.

“China is a nation that any other prosperous nation would need [for] technology and innovation…I think there’s a benefit” to a lot of these actions, he added.

— Charmaine Jacob

Hong Kong-listed Chinese tech stocks jump in early trading

Hong Kong-listed shares of Chinese tech companies rose significantly in the first hour of trading.

Tencent increased by 7.6%, Meituan gained 5.9%, and Ali Baba increased by 9%. The Hang Seng Tech index rose around 4%.

The moves come despite disappointing data on Chinese retail activity and sales, and following US President Joe Biden and Chinese President Xi Jinping’s meeting ahead of the G-20 summit in Bali.

Chief strategist at private investment firm Safanad, John Rutledge, said the discussion between the two executives had “gone much better” than expected, although he mainly attributed that to low expectations.

Biden-Jinping meeting went much better than expected, says Safanad's Rutledge

TSMC shares jump more than 9% on news of Berkshire Hathaway stake

Shares of Taiwan semiconductor manufacturing company listed in Taiwan surged after Berkshire Hathaway revealed a $4 billion stake in the company.

The stock soared 9.44%, reaching the highest levels in nearly two months.

Berkshire added more than 60 million shares of the Taiwanese chipmaker’s U.S. certificates of deposit, worth $4.1 billion (1.2% of TSM) by the end of the third quarter, making Taiwan Semi the 10th largest holding in the conglomerate at the end of September.

The stock was up around 8% last time.

China’s industrial production and retail sales are below expectations in October

Chinese industrial production rose 5% in October from a year ago, slowing from a 6.3% increase seen in September. The latest figure misses estimates of a 5.2% rise predicted in a Reuters poll.

Separately, retail sales in China fell 0.5% in October from a year ago, below expectations.

Analysts polled by Reuters had expected a 1% increase and retail sales rose 2.5% in September.

—Abigail Ng

CNBC Pro: Morningstar’s top strategist says stocks are 15% undervalued, shares 6 favorites

With many stocks in a bear market, stocks could be undervalued by 15%, according to Morningstar.

The US equity research firm’s chief strategist thinks the headwinds that were present earlier in the year will start to ease early next year and benefit stocks.

Dave Sekera also shared his “fair value” assessment on six companies with a “wide moat” that will outperform in such an economic environment.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

Australia’s central bank hints at bigger interest rate hikes ahead

The Reserve Bank of Australia has hinted at additional and possibly larger interest hikes in its efforts to rein in inflationary pressures, according to minutes released from its last meeting.

“The Board agreed on the importance of bringing inflation back to target and expects to raise interest rates further in the period ahead,” he said in the statement.

The central bank had considered raising its cash rates by 50 basis points, but saw a stronger case for raising the rate by 25 basis points, she said.

Higher interest rates would be part of broader efforts to “establish a more sustainable balance of supply and demand in the Australian economy”, the RBA said, adding that members had not ruled out the possibility of returning to higher increases if necessary.

– Jihye Lee

Japan’s economy shrinks unexpectedly in third quarter, data show

Japan’s economy contracted unexpectedly in the third quarter from a year ago, according to preliminary official estimates.

Gross domestic product fell 1.2% in the July-September quarter from the same period last year, missing estimates of 1.1% growth in a Reuters poll.

—Abigail Ng

CNBC Pro: China eases Covid measures. Here’s how market pros play it

What stocks could benefit if China rolls back its zero Covid policy? Market pros reveal how to play a reopening as China relaxes some of its virus controls.

Pro subscribers can learn more here.

— Zavier Ong

Shares at session low on Brainard comments

The S&P 500 rebounded from its lows and Treasury yields fell a bit in late morning after Federal Reserve Vice Chairman Lael Brainard said it may “soon” be appropriate to slow the pace. pace of interest rate hikes, in a conversation with Bloomberg News.

The S&P 500 was last down 0.1% after losing more than 0.7% at one point on Monday. The 10-year Treasury yield was 5 basis points higher at 3.878% after hitting around 3.90% earlier.

“I think it’s really important to point out that we’ve done a lot, but we have additional work to do both to raise rates and maintain moderation to bring inflation down to 2% over time,” added Brainard.

—John Melloy, Jeff Cox

Waller’s message from the Fed to the markets: the end point for rates is “still a long way from here”

Fed Governor Christopher Waller said that while the central bank may raise rates at a slower pace next month, that shouldn’t be interpreted as a sign of easing in its fight to lower the economy. ‘inflation.

“Stop paying attention to the pace and start paying attention to where the end point will be. Until we reduce inflation, that end point is still a long way off,” Waller said Sunday.

Earlier this month, the Fed raised rates 75 basis points to their highest level since 2008.

—Fred Imbert

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