Asian markets fell; China’s economy grew 6.3%, missing expectations

Mon, Jul 17 2023 2:33 AM EDT

Indonesian trade fell more than expected in June, trade surplus widened

Indonesia’s trade surplus for June jumped to $3.46 billion, higher than the $1.35 billion forecast by economists polled by Reuters.

However, total trade fell overall, with the country’s exports in June falling to $20.61 billion, down 21.18% year-on-year.

Imports for June reached $17.15 billion, 18.35% lower compared to June last year.

— Lim Hui Jie

Sun, Jul 16 2023 11:44 PM EDT

Investments in Asia-Pacific hotels will fall in the first half of 2023, says JLL

Investments in Asia-Pacific hotels saw a significant decline in the first half of the year due to instability in the US and European debt markets, JLL said.

Compared to last year, investments fell by 52% and reached $3.1 billion, data from the real estate firm showed.

“Many buyers today are facing rate cycles, inflation uncertainty, macroeconomic challenges,” Calvin Li, head of transaction advisory services at JLL, told CNBC’s “Squawk Box Asia” on Monday .

As a result, they want to “keep their capital on the sidelines,” he added, until it’s the right time to invest again.

However, Li expects investments in the region to pick up in the second half of the year as the debt market stabilizes and forecasts $8.7 billion worth of hotel investments by 2023.

“With rate cycles close to stabilization … and inflation subdued in most developed markets, we think investors will be less risk averse to [and] willing to give up,” said Li.

— Charmaine Jacob

Sun, Jul 16 2023 11:34 PM EDT

China unlikely to inject ‘massive stimulus’ to jump-start economy, strategist says

China’s policymakers are unlikely to inject “enormous stimulus” to jump-start a weak economy, according to Arthur Kroeber, founding partner and head of research at Gavekal Dragonomics, an economic research firm focused on China.

“I think the government has been pretty clear that they’re not going to stimulate that much,” he told CNBC’s “Squawk Box Asia” on Monday.

“Basically what they’ve said is they want to do some fine tuning, they’re going to make some adjustments around the edges. But the big, kind of massive stimulus that we’ve been used to in China for the last 15 years every time. you’re slow — I don’t think we’ll ever get that again.”

Kroeber noted that the government realizes that “there is a structural problem in the property sector that simply must be resolved.”

“They’re not going to help that matter by pouring in lots and lots of stimulus to get people to buy houses they don’t need,” he added.

— Sumathi Bala

Sun, Jul 16 2023 11:10 PM EDT

China keeps medium term loan unchanged at 2.65%

China’s central bank kept its medium term loan rate unchanged at 2.65%, after the People’s Bank of China launched a 103 billion yuan ($14.43 billion) worth of one-year medium-term loan facility in lending at that rate.

It will fully meet the cash needs of financial institutions and maintain “reasonable and adequate liquidity in the banking system,” the central bank said.

The PBOC also conducted a reverse repurchase operation of 33 billion yuan through a seven-day reverse repo, at an unchanged rate of 1.9%.

— Lim Hui Jie

Sun, Jul 16 2023 10:18 PM EDT

China’s second quarter GDP grew 6.3%, slower than expected

China’s second-quarter gross domestic product grew 6.3% from a year ago, missing expectations compared with a 7.3% forecast by analysts polled by Reuters.

The 6.3% GDP print for the second quarter marked a 0.8% growth pace from the first quarter, slower than the 2.2% quarter-on-quarter pace recorded in the first three months of the year.

Separately, the unemployment rate among youth ages 16 to 24 was 21.3% in June, a new record.

— Evelyn Cheng

Sun, Jul 16 2023 10:15 PM EDT

Hong Kong is likely to cancel all trading sessions for Monday

Markets in Hong Kong are likely to be closed throughout Monday, after the city’s observatory forecast that a typhoon warning for Typhoon Talim would remain in effect until 4 pm Hong Kong time.

The Hong Kong Exchange usually cancels morning trading sessions if the typhoon signal is No. 8 or higher after 9 am, and all trading sessions for the day will be canceled if signal No. 8 or higher will remain in effect at noon.

— Lim Hui Jie

Sun, Jul 16 2023 9:06 PM EDT

Singapore non-oil domestic exports contracts for the ninth consecutive month

Singapore’s non-oil domestic exports fell 15.5% year-on-year in June, marking the ninth straight month that such exports remained in contraction territory.

It was a deeper fall than the 14.8% decline recorded in May, but slightly less than the 15.8% fall expected by economists polled by Reuters.

Enterprise Singapore, Singapore’s enterprise development agency explained that the fall in non-oil domestic exports was due to weaker exports to Malaysia, Indonesia and South Korea, although exports to Hong Kong and China increased.

— Lim Hui Jie

Sun, Jul 16 2023 8:09 PM EDT

CNBC Pro: ‘Red-hot upside’: This global high-growth tech fund’s stock could rise 180%, says Berenberg

Shares of a venture capital fund focused on the high-growth technology sector can increase by more than 180%, according to Berenberg.

The bank’s analyst said even though the VC fund’s portfolio is not experiencing growth and is valued at a 20% discount compared to its peers, it still represents a 54% increase.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Sun, Jul 16 2023 8:09 PM EDT

CNBC Pro: UBS updates its ‘top conviction’ stock list — and it aims to beat a major index

UBS has named a raft of US and global stocks it says are set to beat a major index in 2023, which it described as a year of “inflection points.”

The stock picks are its “highest conviction” names, and the list aims to beat the MSCI All Countries World Index, the Swiss bank said in a research note on July 11, adding that it is not “shy about taking of some contrarian positions.”

CNBC Pro subscribers can read more here.

— Lucy Handley

Fri Jul 14 2023 3:48 PM EDT

Global headline inflation appears to have risen, the IMF said

In the Group of 20 countries, headline inflation seems to have picked up, according to the International Monetary Fund. However, in most G20 countries, especially advanced economies, core inflation remains above the central banks’ targets.

“In the fight against inflation there are some early signs of monetary policy sending activity down, with bank lending standards tightening in the euro area and in the United States. That said, policymakers should avoid ‘ ‘premature celebration’: lessons from previous episodes of inflation show that easing policy too early can undo progress in inflation,” IMF managing director Kristalina Georgieva wrote in a note Last Friday.

The IMF forecasts global growth in the medium term to fall to around 3%, lower than the historical average of 3.8% in 2000 to 2019.

— Hakyung Kim

Fri Jul 14 2023 12:48 PM EDT

Investors are hoping for an increase in market momentum next week as earnings decline

Stocks may continue to gain momentum next week as traders turn their attention to earnings results after weaker inflation news last week.

Major benchmarks were headed for a positive week on Friday after consumer and wholesale inflation picked up in June bolstering the possibility that the Federal Reserve is nearing the end of its rate hike campaign. Traders see a 95% certainty that the Federal Reserve will hike at the central bank’s July meeting, according to CME Group’s FedWatch Tool. They are 81% sure that the Fed will stand up in September.

“I think the Fed is pretty much locked in for another hike,” said Rob Williams of Sage Advisory. “But given this inflation data, I think they’re kind of one and done.”

CNBC Pro subscribers can read the full story here.

— Sarah Min

Fri Jul 14 2023 1:51 PM EDT

More than one-third of Friday’s new 52-week highs in the S&P 500 were all-time records

More than a third of the 32 stocks making new 52-week highs on the S&P 500 Friday are also trading at all-time records. Three of the 32 (JPM, V, CRM) are also in the Dow Jones Industrial Average. Three of the all-time highs are homebuilders. And then there’s Nvidia, of course:

  • Netflix, the highest trade since Feb. 2022
  • Booking Holdings, which traded at record highs in its 1999 IPO
  • DR Horton, all-time high in 1992 IPO
  • Lennar, all-time high back to start of trading in 1971
  • PulteGroup, trading at all-time highs dating back to its IPO in 1972
  • CBOE Holdings, all-time high in 2010 IPO ‎
  • Intercontinental Exchange, highest since April 2022
  • JPMorgan (JPM), highest since Feb. 2022
  • Moody’s, highest since Feb. 2022
  • S&P Global, highest since April 2022
  • Visa, highest since August 2021
  • Align Technology, highest since April 2022
  • Cooper Companies, highest since April 2022
  • DexCom, highest since Dec. 2021
  • IDEXX Laboratories, highest since April 2022
  • Intuitive Surgical, highest since Jan. 2022
  • Steris, highest since June 2022
  • Copart, all-time high back to 1994 IPO
  • Masco, highest since Feb. 2022
  • Rollins Inc., highest since 1968 trading start
  • Adobe, highest since Feb. 2022
  • Ansys, highest since Jan. 2022
  • Cadence Design Systems, all-time since predecessor ECAD went public in 1987
  • Salesforce.com, highest since Feb. 2022
  • Fortinet, all-time high in 2009 IPO
  • Gartner, highest since Nov. 2021
  • ServiceNow, highest since March 2022
  • NVIDIA, all-time high since 1999 IPO
  • ON Semiconductor, all-time high since 2000 IPO
  • Teradyne, highest since April 2022
  • Sherwin-Williams, highest since June 2022
  • Equinix, highest since Jan. 2022

Meanwhile, just five stocks fell to 52-week lows on the S&P 500 Friday, none of them a record, although AT&T hit a 20-year low:

— Scott Schnipper, Christopher Hayes

#Asian #markets #fell #Chinas #economy #grew #missing #expectations

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