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

New Zealand’s Auckland Airport’s passenger volume reached 74% of pre-pandemic levels in November

New Zealand’s Auckland Airport saw its total passenger volumes for November reach 74% of the levels seen in the financial year 2019 to June 2019, or the last full year not affected by the pandemic. Airport according to monthly traffic updates.

International travelers were at 67% of pre-epidemic levels, the statement said, adding that the majority of returnees were short-haul flights from Australia and the Pacific Islands.

Demand for routes between New Zealand and North American regions has reached 86% of pre-pandemic levels, including two additional destinations in Texas (Dallas/Fort Worth) and New York.

– Jaehee Lee

CNBC Pro: These 6 low-debt global stocks are set to outperform, says Bernstein

Rising interest rates have major implications for companies with large amounts of debt, as they are likely to experience higher borrowing costs.

As interest rates continue to rise, analysts at Bernstein think stocks with low debt exposure and high debt quality should do well.

The investment bank has named a few global low-debt stocks with investment-grade credit ratings that are likely to do well.

CNBC Pro subscribers can read more here.

– Ganesh Rao

ZIP shares rebound after initial rally

An Australian “Buy Now, Pay Later” company Zip It fell more than 10% after a brief rally following its quarterly results.

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

The company said below “monthly cash burn has decreased and is expected to continue to increase.” It said cash and liquidity currently available “is sufficient to see the company through to generating positive cash flows” and expects to deliver positive cash EBITDA in the first half of fiscal 2024.

Week Ahead: PMIs, Australia and Singapore Inflation Reports, South Korea GDP

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

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

On Tuesday, local purchasing managers’ index readings for Japan and Australia will be in focus while most markets remain closed to observe the Lunar New Year. With the exception of Australia, Japan and Indonesia.

Inflation reports will be in focus on Wednesday as Australia and New Zealand release their consumer price index readings for the final quarter of 2022. Singapore to release inflation print for December

Also Read :  Market close: NZ stocks feel weight of global inflation fight

The Hong Kong market is scheduled to resume trading on Thursday.

Fourth-quarter gross domestic product for South Korea and the Philippines will be released on Thursday, while the Bank of Japan will release a summary of comments from its latest monetary policy meeting in January. Japan also reports its services producer price index on Thursday.

Japan’s core CPI reading for the capital Tokyo will be a barometer for where monetary policy is headed.

Australian producer price index and trade data will be closely watched indicators ahead of the Reserve Bank of Australia meeting in the first week of February.

– Jaehee Lee

Australia’s business conditions worsened last month: NAB survey

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

NAB said the survey reflects poor terms of trade, profitability, and employment.

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

Meanwhile, business confidence rose by 3 points to -1 in December, a better reading than the -4 points seen in November.

– Jaehee Lee

Japan’s headline factory data shows a second straight month of contraction

Aojibon Bank’s flash Japan manufacturing purchasing managers’ index for January was unchanged at 48.9 for the second straight month, below the 50 mark that separates contraction and growth from the previous month.

Reading “indicates a strong joint deterioration in health [of] Japan’s manufacturing sector since October 2020,” S&P Global said.

The Au Jibon Bank flash composite output index rose to 50.8 in January, slightly higher than December’s reading of 49.7.

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

– Jaehee Lee

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

After more than 2 years of regulatory crackdowns and a slowdown caused by the pandemic, Chinese tech names are back on Wall Street’s radar, with one stock in particular standing out as a top pick for many.

Pro customers can read more here.

– Xavier Ong

The Fed is likely to discuss next week when to stop hiking, the Journal reports

Federal Reserve officials are almost certain to approve another cut in interest rate hikes next week while also debating when to stop raising rates altogether, according to a Wall Street Journal report. .

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The Federal Open Market Committee’s rate-setting meeting was held Jan. 31-Feb. 1, with markets pricing in a nearly 100% chance of a quarter-point increase in the central bank’s benchmark rate. Most significantly, Fed Governor Christopher Waller said on Friday that he sees a 0.25 percentage point hike as the best move for the next meeting.

However, Waller said he doesn’t think the Fed has tightened yet, and several other central bankers have backed that idea in recent days.

The Journal report, citing public statements by policymakers, said slowing the pace of the hike could help gauge what impact the hike has had on the economy so far. The series of rate hikes started in March 2022 resulting in a 4.25 percentage point increase.

The market price currently indicates a quarter-point increase over the next two sessions, a period of no action, and then a half-point decline through the end of 2023, according to CME Group data.

However, several officials, including Governor Lyle Brainard and New York Fed President John Williams, have used the phrase “stay the course” to describe the future policy path.

– Jeff Cox

Nasdaq on pace for further gains as tech stocks rise

The Nasdaq Composite fell more than 2.2% in midday trading on Monday, lifted by tech stocks.

The move put the tech-heavy index on pace for consecutive day gains of more than 2%. The index rose 2.66% on Friday.

A rally in semiconductor stocks helped lift the index. Tesla and ApplMeanwhile, they increased by 7.7% and 3.2%, respectively, as the reopening of China raised expectations of growth for their businesses. Western Digital and Advanced Micro Devices While each rose about 8% Qualcomm and Nvidia Up about 7%.

Information technology was the S&P 500’s best-performing sector, gaining 2.7%. This was partly due to gains in the chip sector. Telecommunications services added 1.9%, boosted by the likes Netflix, Meta platforms, the alphabet and Match group.

– Samantha Sabin

Al-Arian says the Fed should raise 50 basis points, calling the small increase a ‘mistake’

Inflation has moved from the goods to the services sector, says Mohamed El Irian
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A rise in inflation may have appeared to be more pronounced in the past, but a shift to a 25 basis point hike at the Federal Reserve’s next policy meeting is a “mistake,” according to Allianz chief economic adviser Mohamed El-Erian.

“I’m in a very small camp that thinks they shouldn’t go down 25 basis points, they should do 50,” he told CNBC’s “Squawk Box” on Monday. “They have to take advantage of this growth window that we’re in, they have to take advantage of where the market is, and they have to try to tighten fiscal conditions because I think we still have an inflation issue. “

Inflation has shifted from the goods to the services sector, he said, but could improve if energy prices pick up as China reopens.

Al-Arian expects inflation to hover around 4%. That will put the Fed in a difficult position, he said, as to whether they should continue to target 2 percent of the economy, or commit to that level in the future and hope that investors can expect 3 to 4 percent. 100% to withstand a period of approx.

“It’s probably the best result,” he said of the latter.

– Samantha Sabin

According to Morgan Stanley, the decline in earnings is imminent

According to Michael Wilson, equity strategist at Morgan Stanley, a decline in earnings this year is imminent.

“Our view is unchanged as we expect the earnings path in the US to disappoint both consensus expectations and current valuations,” he said in a note to clients on Sunday.

Some positive developments have emerged in recent weeks – such as China’s ongoing opening and falling natural gas prices in Europe – and have helped some investors to be more optimistic about the market’s prospects.

However, Wilson advises investors to stay focused on equities, citing price action as the main influence for this year’s rally.

“This year’s rally was led by low quality and very low stocks,” he said. “It also witnessed a stronger move in cyclical stocks than in defenses.”

Wilson based his predictions on pessimism, and he believes the case for it is growing. Many industries are already facing declining revenues, as well as bloated inventories, less productive headcount.

“It’s just a matter of timing and intensity,” Wilson said. “We advise investors to focus on the fundamentals and ignore the false signals and false reflections in this picture-perfect market.”

– Hakyung Kim


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