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

Apple, NVIDIA customers may pay more for US-made chips: Analyst

Customers of Apple and NVIDIA are likely to face a price increase from Taiwan Semiconductor Manufacturing Company‘s Arizona chip plant, according to strategy.

“Subsidies will play a big role in helping close the economic gap, but there will also be price increases for customers,” Abhinav Davuluri, technology equity strategist at Morningstar, tells “Squawk Box Asia” of CNBC on Wednesday.

“Not only is it a much smaller fab, which reduces the economy, it’s also happening in a much higher cost region,” he said.

The US plants will be a small fraction of TSMC’s total capacity of 12 million wafers in 2020, according to a company press release.

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

– Sheila Chiang

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

The dollar-yuan may remain below 7 for

The market was too bearish on China and its currency, but is now more balanced, said Peter Chia, senior FX strategist at UOB.

“Right now you can see that the pendulum has changed from very negative [stance]so 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-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 about the outlook for the Chinese yuan, but that markets should not underestimate the potential of the Chinese consumer.

“I think this will reverberate throughout the region,” he said. “There are many headwinds coming from the Western world, but if played correctly, I think China will be able to offset many of these headwinds.”

— Abigail Ng

China lifts negative test requirement for cross-region travelers

Trans-regional travelers in China will no longer need to show negative test results for Covid, according to a statement from the National Health Commission.

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

Asymptomatic Covid patients can also choose to self-isolate at home for five days, he said.

– Evelyn Cheng

Hong Kong tech, travel stocks rise ahead of China’s Covid presser

China’s full opening is unlikely to appear in the next six months: Hang Seng Bank

A full reopening in China is unlikely to be seen soon, economist Dan Wang of Hang Seng Bank said on CNBC’s “Squawk Box Asia.”

Also Read :  China launches 2nd lab module for its space station

“We don’t know if… the “return to normal” can happen, in fact, in the next six months,” she said, citing inconsistencies in the implementation of the policy among departments and regions. different.

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

China's export figures are likely to get worse, the economist says

India’s central bank raises rates by 35 basis points, in line with expectations

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

This follows a 50 basis point increase in September.

Inflation decreased to 6.77% in October this year on an annual basis, down from 7.41% in September. That is still above the RBI’s inflation target of 4%.

— Abigail Ng

China’s reopening is bigger driver of oil prices than cap on Russian crude, Singapore official says

China cannot take an approach of

China’s reopening will be a bigger driver for oil prices than the cap on Russian oil, Singapore’s foreign minister Vivian Balakrishnan told CNBC on Tuesday.

“I would expect to see a significant opening,” Balakrishnan said. “Now this has profound implications for the global economy, more than an oil price cap.”

China’s medium- to long-term playbook should therefore focus on improving vaccination rates, Balakrishnan said.

“You can open it if you have high vaccination rates. So I’ll be watching to see what efforts China makes to increase vaccination in the elderly,” he added.

Read the full story here.

– Charmaine Jacob

Vingroup shares rise 5% as VE unit’s VinFast filings go public in US

Shares of Vietnam-listed Vingroup rose more than 5% and are hovering around five-month highs after EV maker VinFast’s unit filed to go public in the States United, .

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

In March, the firm announced plans for a $2 billion factory in North Carolina.

– John Rosevear, Jihye Lee

China’s exports and imports fall more than expected

China’s dollar-denominated exports fell 8.7% in November on an annual basis, falling more than expectations of a 3.5% decline, according to analysts in a Reuters poll.

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

The nation’s trade surplus came in at $69.84 billion, short of forecasts for $78.1 billion.

– Jihye Lee

House prices in Hong Kong have fallen to their lowest level in almost five years, with more room to fall

Hong Kong residential property prices fell to near five-year lows as rising interest rates and a mass exodus of expatriate workers pushed prices down into a of the most expensive cities in the world to work in — and there’s more room to slow down.

Also Read :  Tesla slashes prices in U.S., Europe to drive demand

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

In addition, according to a Natixis report, of the city property prices could fall by 25% from the previous peak in 2021, before starting to cut losses.

“The weak economic environment both in Hong Kong and globally, and rapidly rising borrowing costs are the most important contributors to the decline in property prices,” said Nelson Wong, executive director of research at real estate company Jones Lang LaSalle to CNBC.

—Lee Ying Shan

TSMC shares rise after Apple says it will use US-made chips from Taiwanese firm

China is expected to see further declines in exports and imports

China’s trade data for November is expected to show further declines in both exports and imports, according to a Reuters poll of economists.

The average forecast predicts that exports will fall 3.5% in November on an annual basis after falling 0.3% in October, and imports are forecast to fall 6% after falling 0.7% the previous month.

The trade balance in US dollars is forecast to decline to $78.1 billion — smaller than the previous month’s $85.15 billion.

— Jihye 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 allure of fixed income is strong” right now.

“Higher yields are a gift to investors who have long been hungry for income. And investors don’t have to go up the risk spectrum to receive it,” Philipp Hildebrand, vice president of BlackRock, and Jean Boivin, head of the BlackRock Investment Institute, wrote in a note last week.

They outlined their best ways to make cash.

Pro subscribers can read more here.

— Zavier Ong

Australia’s economy saw slower growth in the third quarter

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

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

On an annualized basis, GDP in the third quarter increased 5.9%, which the Australian Bureau of Statistics said reflected “economic growth supported by the effects of the Delta outbreak in the September 2021 quarter.”

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“Growth was largely driven by strength in household spending,” it added.

The annualized figure also missed expectations in a separate Reuters poll for a 6.2% increase.

Australian dollar little changed after the report and the S&P/ASX 200 held 0.7% less.

— Abigail Ng

CNBC Pro: UBS says shares in global airline expected to rise 55%

Shares of a global airline are expected to rise by 55% over the next year, according to UBS.

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

CNBC Pro subscribers can read more here.

— Ganesh Rao

Stocks end lower, building on Monday’s losses

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

The LS&P 500 fell 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 dropped 350.76 points, or 1.03%, to settle at 33,596.34.

— Samantha Boys

Oil falls to lowest level since December 27, 2021

Oil prices fell on Tuesday, weighed down by economic uncertainty even amid a Russian oil price cap and a potential increase in demand thanks to China’s reopening.

US West Texas Intermediate crude for January delivery fell more than 4% to $73.85 on Tuesday afternoon. Brent crude for delivery in February fell 4.34% to $79.09 a barrel.

The United States also said it sees oil production rising next year, reversing its outlook for the future after five months of declines. A monthly report from the Energy Information Administration said production is forecast to hit 12.34 million barrels per day in 2023, up from the daily record of 12.315 million barrels per day in 2019.

—Carmen Reinicke

Inflation is eroding consumer wealth and could bring recession in 2023, Dimon says

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

Al Drago | Bloomberg | Getty Images

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

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

“Inflation is eroding everything I just said, and that trillion and a half dollars will be gone in the middle of next year,” Dimon said. “When you’re looking ahead, those things can disrupt the economy and cause a mild or severe recession that people worry about.”

Dimon also opined on cryptocurrencies, the necessity of fossil fuels and other topics during the wide-ranging interview.

— Hugh Son

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