Stocks Rise Ahead of RBA Decision; Caixin PMI below 50

Stocks Rise Ahead of RBA Decision;  Caixin PMI below 50
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Australia’s central bank raises rates by 25 basis points as expected

The Reserve Bank of Australia raised interest rates by 25 basis points to 2.85%, in line with the median forecast of analysts in a Reuters poll.

This is the seventh consecutive tightening move by the RBA in a bid to control inflation in the country.

the Australian dollar rose to around $0.6440 before the decision, last trading at $0.6429 following the ad.

In the previous meeting in October, the central bank raised rates by 25 basis points, less than the expected half point.

— Abigail Ng

Hong Kong Motors: Hang Seng Tech Shares Lead Gains in Broader Index

Hong Kong-listed tech stocks led gains in the broader Hang Seng Index, with Meituan gaining more than 10% in the morning session.

Tencent won 8.56%, alibaba rose 7.2% and xiaomi it gained 4.3%. it also rose 6.06%.

The move comes after Caixin PMI data for China factory activity came in slightly better than expected, according to CMC Markets market analyst Tina Teng.

– Jihye Lee

Hang Seng loses more than 14% in the month of October

Asia-Pacific Market Performance in October

Market Month-to-date performance Year-to-date performance
Australian S&P ASX 200 6.01% -7.81%
Japan Nikkei 225 4.5% -5.86%
Kospi from South Korea 6.23% -23.1%
China Shanghai Composite -4.33% -20.5%
The Hang Seng of Hong Kong -14.55% -37.1%

Mainland China and Hong Kong markets underperformed their Asia-Pacific peers in the month of October.

the hang up seng The index wallowed at its lowest levels since April 2009 after shedding 14.55% at Monday’s close.

Meanwhile, stocks in Australia, Japan and South Korea posted single-digit gains to close the first month of the last quarter of the year, while the Shanghai Composite fell 4.33%.

Japanese stocks closed at their highest level since September 1. 20, but the main APAC indices were still underwater from the beginning of the year.

— Abigail Ng

CNBC Pro: What investors should buy in this ‘short-lived’ rally, analyst says

Analyst explains why he's still negative on tech right now

After the October stock rallyInvestors debate whether stocks have bottomed out or if this is another short-lived rebound.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is on the latter side, arguing that the rally once again appears temporary.

He told CNBC what he thinks investors should buy, and short.

CNBC Pro subscribers can read more here.

— Weizhen Tan

China’s factory activity contracted for the third consecutive month in October: private survey

Caixin’s Manufacturing Purchasing Managers’ Index for October showed factory activity contracted for the third month in a row.

The reading was 49.2, compared to expectations for a print of 49. In September, the manufacturing PMI was 48.1, below the 50-point mark that separates growth from contraction.

PMI readings compare activity from month to month.

Official data from the Office for National Statistics came in at 49.2 on Monday, below expectations for a print of 50.

— Abigail Ng

Hong Kong’s economy shrank 4.5% in the third quarter

Hong Kong’s gross domestic product fell 4.5% in the third quarter of the year compared to the same period a year earlier. advance estimates of the Department of Census and Statistics showed on Monday.

That is the worst contraction since the second quarter of 2020. Analysts polled by Reuters had expected growth of 0.7%, while GDP declined 1.3% in the second quarter.

“The worsening external environment and continued disruptions in cross-border land cargo flows dealt a heavy blow to Hong Kong’s exports,” the statement said, adding that the drop in GDP was “mainly attributable to weak demand performance. abroad during the quarter”.

Fixed capital formation, or investment, decreased by 14.3%, while exports and imports also fell.

— Abigail Ng

CNBC Pro: Shares in this Chinese electric car maker could jump more than 260%, says Citi

Citi picked a large electric car maker as one of its “top” buy ideas among Chinese stocks.

He expects the automaker’s shares to rise more than 260% over the next 12 months as sales of electric vehicles soar.

CNBC Pro subscribers can read more here.

— Ganesh Rao

South Korea’s trade deficit widens for October

South Korea’s trade deficit widened to $6.7 billion for the month of October from a revised $3.78 billion in September, data from the customs agency showed.

Imports rose 9.9% to $59.18 billion from the same period a year earlier, while exports fell 5.7% to $52.48 billion.

The latest data shows the biggest drop in exports since August 2020, according to FactSet.

– Jihye Lee

CNBC Pro: Forget Tesla? Citi and HSBC name 2 alternatives to play the boom in electric vehicles

Tesla may be an investor favorite for exposure to the electric vehicle industry, but Citi and HSBC mention two alternatives to take advantage of the growing demand for electric vehicles.

Professional subscribers can read more here.

—Xavier Ong

Japan spent $42.7bn to prop up yen, ministry says

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