Bank of Japan’s Kuroda: Bond target band needs no further expansion
Bank of Japan Governor Haruhiko Kuroda said at a press conference Wednesday afternoon that there was no need to widen its yield curve control range. Reuters translation.
“There is no need to widen the band further around our yield target,” Kuroda was quoted as saying.
“It has not been long since we decided on our actions in December. It will take some more time before we start taking steps to correct market activity,” he said.
The Bank of Japan kept interest rates at an abysmal -0.1% No changes were made For its yield curve control band.
– Jihye Lee
Morgan Stanley estimates that China’s equity market will be the best performer of 2023
Morgan Stanley estimates that the Chinese stock market will emerge as the best performer in 2023.
The MSCI China Index will hit 80 and the Hang Seng Index will rise to 24,500 by the end of the year, said Laura Wang, chief China equity strategist at Morgan Stanley. This would be a 15% upside from where the market is trading now.
“This actually indicates that the Chinese stock market will lead the global stock market performance by 2023, so it’s time to return to China,” he noted.
Wang’s recommendation is to buy stocks of large-cap and more liquid Internet names.
The internet sector “has a very high correlation with the general pace of consumption growth in China”, especially in the country’s post-Covid recovery journey, he said.
Many global institutional investors are still significantly underweight these large-cap liquid names, Wang said.
– Lee Ying Shan
CNBC Pro: ‘Totally unique’: Fund manager names 2 stocks to play semiconductor sector
Semiconductor stocks are on the rise after a rough 2022 — and fund manager Trend Masters says the two stocks are well-placed to avoid volatility.
Pro subscribers can Read more here.
– Javier Ong
And with oil prices rising in China, confidence and demand will rebound
Oil prices are supported by China’s optimism and the reopening of fuel demand, with OPEC forecasting that Chinese oil demand is on track for a rebound.
Brent Crude futures rose 0.85% to $86.65 a barrel, while U.S. West Texas Intermediate Futures rose 0.91% to $80.91 a barrel.
“Chinese oil demand is rebounding due to the recent relaxation of the country’s zero-covid measures,” OPEC’s Monthly oil report Said.
China’s first-quarter oil demand is expected to pick up annual growth by 0.2 million barrels a day in the fourth quarter of 2022 from an annual decline of 0.3 million barrels a day, it said.
– Lee Ying Shan
Japanese Yen Weakens After BoJ Announces No Change in Bend Range
The The Japanese yen weakened against the greenback The Bank of Japan surprised markets by keeping its yield curve tolerance band unchanged.
The Japanese yen After the announcement, it weakened 2.04% against the US dollar and last traded at 130.94.
“Japan’s economy is expected to continue to grow faster than its potential growth rate,” the central bank said in a statement.
The Bank of Japan also left its interest rate unchanged at an ultra-dovish -0.1% – in line with expectations and maintaining the same rate it has held since 2016.
-Jihye Lee, Lee Ying Shan
Gaming stocks rise after China grants licensing approvals
Hong Kong-listed gaming stocks rose after China The license approved 88 gamesThese include NetEase, Tencent Holdings and miHoYo, further easing Beijing’s gaming crackdown.
Shares NetEase It rose as much as 6.81% in early trade, hitting its highest in more than four months. Tencent Shares gained 0.11%.
– Lee Ying Shan
Bank of Japan likely to lift yield curve controls by another 50 basis points: UBS
Japan’s central bank is likely to widen its 10-year Treasury yield curve control range by another 50 basis points to a range of 1% below and above its 0% target, UBS Global Wealth Management managing director Tan Teck Leng said.
“A scenario where the YCC is completely abandoned is unlikely,” he told CNBC’s “Squawk Box Asia,” adding that a move would be “uncharacteristic” of the central bank.
“The easiest thing for them to do is remove the cap and let it find a fair value – but again that comes with a very large degree of uncertainty, which is why, as a middle ground, we think they should at least raise it. A 1.0% cap,” he said.
Yield on 10thAnnual Japanese government bonds It breached the upper ceiling of its band for the 5th consecutive session on Wednesday morning ahead of the BOJ’s monetary policy announcement.
Japan’s core manufacturing orders for November fell more than expected
Japan’s private sector manufacturing orders for November fell 8.3% from the previous month. According to official data.
The drop was significantly larger than Reuters’ expectations for a 0.9% decline. On an annualized basis, manufacturing orders fell 3.7%.
Private sector machinery figures exclude orders for ships and turbines for electric power companies.
– Lee Ying Shan
CNBC Pro: Thinking of jumping back into big tech? This investor is particularly wary of 2 stocks
CNBC Pro: Morgan Stanley says cheaper EVs are coming — and global stocks benefit
As electric cars become increasingly popular, a new manufacturing technique that could make them more affordable is gaining interest, according to Morgan Stanley.
Some automakers are outsourcing the process, which could benefit three leading Asian parts suppliers, according to the Wall Street bank.
CNBC Pro subscribers can read more here.
– Ganesh Rao
Stocks end the day mixed, with the Dow falling nearly 400 points
The Dow Jones Industrial Average ended the day lower as Goldman Sachs shares weighed on the stock index.
The Dow lost 391.76 points, or 1.14%, to close at 33,910.85. The S&P 500 fell 0.2% to 3,990.97. The Nasdaq Composite rose 0.14% to end at 11,095.11.
– Tanaya Machel
Bank of America later sees the beginning of a recession
According to Bank of America, a recession now won’t start until late 2023 as consumer spending is stronger than expected and the Federal Reserve eases its rate hikes.
“We are pushing back the timing of our outlook for a mild slowdown in the U.S. economy by a quarter, due to the persistence in consumer spending due to strong labor markets, excess savings, declining energy prices and easy financial conditions,” the firm said. A customer note. “That said, we think headwinds will lead to lower consumer spending and higher savings rates as the year progresses.”
That puts the recession in its second quarter, an investment-led slowdown that spills over into consumer spending.
After raising its benchmark lending rate by 4.25 percentage points in 2022, the central bank is expected to ease again with a 0.25 percentage point increase in February. An additional quarter point increase is forecast to follow in March and May.
The company said the rate cut won’t come until 2024.
– Jeff Cox
Goldman Sachs shares fall on earnings miss
Goldman Sachs shares fell 2.4% after Wall Street The investment bank shared its fourth-quarter earnings results, which it missed Expectations of analysts at top and bottom levels.
The bank reported earnings of $3.32 per share on revenue of $10.59 billion. According to analysts surveyed by Refinitiv, consensus estimates call for earnings of $5.48 a share on revenue of $10.83 billion.
Provisions for loan losses also came in slightly higher than expected.
– Hugh Son, Samantha Subin