China Covid relaxation, Hong Kong stocks rise

Hong Kong movers: Chinese tech companies and stocks reopen

Hong Kong-listed Chinese technology, consumer and travel-related companies saw sharp gains in early trade after some Chinese cities saw some easing of Covid restrictions.

Tech heavyweights Tencent rose 5.5% and Meituan 3.5%, while Alibaba added 4.72% and Xiaomi 7.31%. EV stocks such as Lee Auto rose 9.19% and Nio rose 11.5%.

Meanwhile, Hong Kong-listed casino stocks also rose, with MGM China adding 12.44%, Win Macau 12.35% and Sands China adding 7.5%. Galaxy Entertainment An increase of 3.61% and SJM Holdings increased by 4.82%.

Hotpot restaurant operator Heidelaw Up 15%, and airline shares also popped. China Southern Airlines and China Eastern Airlines Each rose more than 5%, while Air China 4% gain.

The broader Hang Seng index was up 3.21%.

– Abigail Ng, Jaehee Lee

Private surveys show China’s services performance index is the lowest in six months

The Caixin/S&P Global Services Purchasing Managers’ Index for November came in at 46.7, Represents the lowest reading in six months.

Printing also marked a third straight month of contraction in output and new work, after October’s reading came in at 48.4, while September’s print rate was 49.3.

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PMI readings are sequential and represent month-to-month changes in factory activity. The 50-point mark separates growth from contraction.

“The rate of decline was strong overall, but remained weaker than the decline seen during the previous large wave of Covid-19 cases from March to May,” Caixin said in a statement.

It added: “Efforts to contain the spread of Covid-19 weighed on service sector business operations and consumer demand across China in November, with a significant increase in the number of cases in recent weeks.”

China’s official non-manufacturing PMI released last week was at 46.7, the lowest since April 2022.

– Abigail Ng

China’s yuan is strengthening hopes of a reopening

The Chinese currency strengthened to around 7 against the US dollar following recent reports indicating further easing of China’s Covid policies.

The offshore yuan is trading at 6.9861 against the greenback, strengthening past the 7-level for the first time since mid-September.

Beijing and Shenzhen are taking steps to ease testing requirements and quarantine regulations even as the number of daily cases approaches an all-time high.

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The latest move comes about a week after the crackdown sparked public unrest in various parts of the country.

– Jaehee Lee

Oil futures up 2% after OPEC+ held steady and China reportedly eases some Covid restrictions

Chinese markets will halt trading for 3 minutes on Tuesday as the nation mourns the former leader

CNBC Pro: Fund manager names two global retailers about to ‘dominate’

Veteran Schroders fund manager has named two global retailers as ‘dominators’ in their sector.

Andrew Brough, who runs Schroder’s UK mid-cap fund, said the two conservative firms were quietly taking market share before the crisis by slowly acquiring failing rivals.

One of these stocks is already up 30% this year while its benchmark index is down 29%.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Stock futures fall, bond yields rise more than forecast on back of jobs data

Stock futures fell while bond yields rose in response to 8:30 a.m. jobs data that was stronger than economists expected.

Here’s how every major futures index and notable bond yields moved in the 30 minutes leading up to the data release:

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CNBC Pro: Goldman Sachs is boosting its global tech giant, saying the stock could rise as much as 90%

Goldman Sachs sees an opportunity in electric vehicles as an “uptrend.”

Goldman analysts said in a Dec. 1 report that this trend will accelerate as EVs become “more technology driven” and simpler to manufacture.

That’s set for a global stock dividend, Goldman said, which gives the stock up to 90% of the bull case for the company.

CNBC Pro subscribers can read more here.

– Vision Tan

US payrolls rose 263,000 in November

Job growth was stronger than expected in November, despite the Federal Reserve’s efforts to cool the labor market.

Nonfarm payrolls rose by 263,000 last month while the unemployment rate was unchanged at 3.7%, according to the Labor Department on Friday.

The payrolls number was expected to grow by another 200,000 jobs, according to Dow Jones consensus estimates. The unemployment rate was expected to remain at 3.7%.

Stock futures fell after the payments were released.

– Sarah Min

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