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

Apple, NVIDIA customers could pay more for US-made chips: analyst

Apple and NVIDIA customers are likely to face price hikes Taiwan Semiconductor Manufacturing CoArizona chip plant, according to Strategist.

“Subsidies will play a major role in bridging the gap from an economic point of view, but there will also be price increases for consumers.” Morningstar technology equity strategist Abhinav Davoluri told CNBC’s “Squawk Box Asia” on Wednesday.

“Not only is it a very small fab, which cuts the economics, it’s also happening in a very high cost area,” he said.

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

TSMC has a 50% global market share and produces the advanced chips in Apple’s latest products. While TSMC does most of its manufacturing in Taiwan, US and European lawmakers have questioned supplies in the event of a Chinese attack.

– Sheila Chiang

Markets are more balanced, but still skeptical in China, UOB says

The dollar-yuan may remain below 7 for some time, says UOB

Peter Chia, FX strategist at UOB, said the market was very bearish on China and its currencies, but is now more balanced.

“Now you see the pendulum has swung from very negative [stance]right now, I would say it’s a little more balanced,” he told CNBC’s “Street Signs Asia,” adding that skepticism remains.

Going forward, the dollar-denominated yuan is likely to be driven by local factors in China rather than the US Federal Reserve, he said.

He added that he remains cautious on the outlook for the Chinese yuan, but that markets should not discount Chinese consumer spending.

“I think it’s going to be repeated across the region,” he said. “There are a lot of headwinds coming from the Western world, but if the game is played right, I think China will be able to avoid a lot of those headwinds.”

– Abigail Ng

China removes negative test requirement for cross-region travelers

Cross-region travelers in China will no longer need to show a Covid-negative test result, according to the National Health Commission.

Areas not designated as high risk cannot stop work or production, the notice said.

Covid patients without symptoms can also choose to self-isolate at home for five days, it said.

– Evelyn Cheng

Hong Kong tech, travel stocks rise ahead of China’s covid pressure

China’s full reopening unlikely in next six months: Hang Seng Bank

Hang Seng Bank economist Dan Wang said on CNBC’s “Squawkbox Asia” that a full reopening in China is unlikely anytime soon.

“We don’t know if … a return to normalcy can actually happen in the next six months,” she said. She said, pointing out inconsistencies in policy implementation between departments and different regions.

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“For example, like Taiwan and Xi’an, their changes in Covid policies are still far behind what is happening in Beijing and Shanghai,” she said.

Economist says, China's export figures will get worse

Reserve Bank of India raises rates by 35 basis points as expected

The Reserve Bank of India hiked interest rates by 35 basis points after its December policy meeting, bringing the interest rate to 6.25%.

This follows a 50 basis point increase in September.

Inflation fell to 6.77% on an annualized basis in October this year, down from 7.41% in September. This is still above RBI’s inflation target of 4%.

– Abigail Ng

China’s reopening is a bigger driver of oil prices than Russian crude levels, Singaporean officials say

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

Singapore’s Foreign Minister Vivian Balakrishnan told CNBC on Tuesday that China’s reopening will be a major driver for oil prices given Russia’s oil restrictions.

“I expect to see a grand opening,” Balakrishnan said. “Now this has profound implications for the global economy, far beyond the oil price ceiling.”

China’s medium- and long-term playbook should therefore boost vaccination rates, Balakrishnan said.

He added: “If you have a high vaccination rate you can be free. So I will see what efforts China is making to vaccinate adults.”

Read the full story here.

– Charmaine Jacob

Vin Group shares rise 5% as EV unit VinFast files to go public in US

Shares of Vietnam-listed Wing Group rose more than 5% and hovered around the highest level it has seen in five months after its EV-making unit VinFast filed to go public in the United States. .

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

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

– John Rosever, Jaehee Lee

China’s exports and imports fell more than expected

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

Imports in US dollar terms also fell 10.6% for the month from a year earlier, falling more than the 6% decline expected in a separate Reuters survey.

The country’s trade surplus came in at $69.84 billion, short of the forecast of $78.1 billion.

– Jaehee Lee

House prices in Hong Kong have fallen to their lowest levels in nearly five years, leaving plenty of room to sink.

Hong Kong residential property prices fell to near five-year lows as rising interest rates and a mass exodus of foreign workers pushed down prices to work in one of the world’s most expensive cities – and with plenty of room to fall. have

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Hong Kong’s house price index for October fell 2.4% to 352.4 from the previous month, marking the lowest level for the gauge. Since November 2017.

In addition, according to the report of Natixis, the city of Property prices may fall by 25% from their previous peak in 2021, before it begins to cut losses.

“The weak economic environment and borrowing costs in Hong Kong and globally are the most important contributors to the rapid decline in property prices,” Nelson Wang, executive director of research at real estate firm Jones Lang LaSalle, told CNBC. .

– Lee Young Shan

Shares of TSMC rose after Apple said it would use chips made by the Taiwanese company in the U.S.

China expects 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 forecast exports to fall 3.5% year-on-year in November after falling 0.3% in October, and imports to fall 6% after falling 0.7% last month.

The trade balance in the United States is expected to decline to $78.1 billion – down from $85.15 billion in the previous month.

– Jaehee Lee

CNBC Pro: ‘Gift to Investors’: BlackRock Says It’s Time to Rethink Bonds

It’s time to rethink bonds, according to the BlackRock Investment Institute, which said “the lure of fixed income is strong right now”.

“High yield is a gift for investors who are hungry for long-term income. And investors don’t need to cross the risk spectrum to get it,” said Philip Hildebrand, BlackRock Vice President, and Head of BlackRock Jean Boivin. Investment Institute, wrote in a note last week.

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– Xavier Ong

Australia’s economy saw slower growth in the third quarter

Australia’s economy grew 0.6% in the previous quarter, official data showed – missing estimates of 0.7% quarterly growth predicted in a Reuters poll.

The latest gross domestic product showed growth from the first three months of the year of 0.9% less than the expansion of the second quarter.

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

“The broad growth was driven by strengthening domestic spending,” it added.

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

Australian Dollar Little has changed since the report and S&P/ASX 200 0.7% held low.

– Abigail Ng

CNBC Pro: UBS says stake in global airline rises to 55%

Shares of the global airline will rise 55% next year, according to UBS.

The investment bank raised its price target after the pan-European airline said it expected to see more demand over Christmas.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Stocks end lower, build on Monday’s losses

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

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

– Samantha Sabin

Oil prices have fallen to their lowest level since December 27, 2021

Oil prices fell on Tuesday, amid economic uncertainty even as lower Russian crude prices and a possible boost in demand from the reopening of China.

U.S. 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 United States also said it expects to increase oil production next year and is changing its outlook for the future after five months of cuts. The Energy Information Administration’s monthly report said production will reach 12.34 million barrels per day in 2023, up from a daily record of 12.315 million barrels per day in 2019.

– Carmen Reinick

Dimon says inflation is eroding consumer wealth and could bring a 2023 deficit

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

El Drago | Bloomberg | Getty Images

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

Consumers have an additional $1.5 trillion in savings from pandemic stimulus programs and are spending 10% more than in 2021, he said on CNBC’s “Squawk Box” on Tuesday.

“Inflation is destroying everything I just said, and that trillion and a half dollars will be gone by the middle of next year,” Dimon said. “When you look ahead, these things may very well derail the economy and lead to a mild or severe recession that people are worried about.”

Dimon also weighed in on cryptocurrencies, the need for fossil fuels and other topics during the wide-ranging interview.

– Have a son


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