He explained that 70% of European fertilizer production facilities are idle due to insufficient ammonium nitrate, of which Russia produces a quarter of the world’s production. “I think what Russia is looking for is more concern on the part of the international community about fertilizer demand so that it can implement this agreement,” said Vatikiotis, who added that more emphasis on fertilizer is needed to achieve a reduction in global cost of food. — Lee Ying Shan
Japan’s monetary policy will not change for the next nine to 12 months: Monex Group
The Bank of Japan will remain a “bulwark of stability” for nearly another year because the output gap in the economy remains, Monex Group’s Jesper Koll told CNBC after the release of third-quarter gross domestic product estimates. He said the GDP figure, which missed expectations, confirmed “how sensitive in a negative way the Japanese consumer is” to the current environment. Beyond the next 12 months, the central bank should pay attention to whether the U.S. economy ends up in a soft landing or a hard landing, Koll said. He added that he is watching whether the Japanese government is able to come up with a structural industrial policy that encourages the business community to commit to its own investment spending. — Abigail Off
There is huge value in some Chinese tech stocks, says Primavera Capital
Shares of major Chinese technology companies are currently “downright depressed” and “cheap,” said Fred Hu, founder and chairman of Primavera Capital. Hong Kong’s Hang Seng Tech Index is down more than 30% since the start of the year, although the index has rebounded in recent weeks. The Chinese government’s relentless crackdowns and zero-Covid policy have dented the confidence of tech entrepreneurs and investors, but there is “tremendous deep value” in some tech stocks, Hu said. “China is a nation that every other successful nation would need [for] technology and innovation… I think there is an upside” to many such stocks, he added. — Charmaine Jacob
Chinese tech stocks listed in Hong Kong jump early in the session
Shares of Chinese technology companies listed in Hong Kong rose sharply in the first hour of trading. Tencent rose 7.6%, Meituan gained 5.9% and Alibaba rose 9%. The Hang Seng Tech Index rose about 4%. The moves come despite disappointing activity and retail sales data from China, and after US President Joe Biden and Chinese President Xi Jinping met ahead of the G20 summit in Bali. Chief strategist at private equity firm Safanad, John Rutledge, said the discussion between the two leaders went “much better” than expected, though he attributed that mainly to low expectations.
TSMC shares jump more than 9% on news of Berkshire Hathaway’s stake
Shares of Taiwan-listed Taiwan Semiconductor Manufacturing Company jumped after Berkshire Hathaway announced a $4 billion stake in the company. The stock jumped as much as 9.44%, hitting its highest level in nearly two months. Berkshire added more than 60 million shares of the Taiwanese chipmaker’s US stock, worth $4.1 billion (1.2% of TSM) by the end of the third quarter, making Taiwan Semi the conglomerate’s 10th largest holding at the end of September. The stock was last up about 8%.
China’s industrial production, retail sales miss expectations in October
China’s industrial production rose 5% in October from a year ago, slowing from a 6.3% rise in September. The latest figure missed estimates of a 5.2 percent rise predicted in a Reuters poll. Separately, retail sales in China fell 0.5 percent in October from a year earlier, missing expectations. Analysts polled by Reuters had expected a 1 percent rise and retail sales rose 2.5 percent in September. — Abigail Off
CNBC Pro: Morningstar’s top strategist says stocks are 15% undervalued, shares 6 favorites
With many stocks in a bear market, stocks could be down 15%, according to Morningstar. The US equity research firm’s chief strategist believes the headwinds that existed earlier in the year will begin to subside early next year and benefit stocks. Dave Sekera also shared his assessment of “fair value” on six companies with a “wide financial moat” that will outperform in such an economic environment. CNBC Pro subscribers can read more here. — Ganesh Rao
Australia’s central bank is hinting at bigger rate hikes ahead
The Reserve Bank of Australia hinted at further and possibly bigger interest rate hikes in its efforts to tame inflationary pressures, according to minutes released from its last meeting. “The Governing Council agreed on the importance of returning inflation to target and expects to raise interest rates further over the next period,” it said in the statement. The central bank had considered raising its cash rates by 50 basis points, but saw a stronger case to raise the rate by 25 basis points, it said. The higher rates would be part of wider efforts to “establish a more sustainable balance of demand and supply in the Australian economy”, the RBA said, adding that members had not ruled out returning to higher hikes if necessary. – Jihye Li
Japan’s economy unexpectedly contracted in the third quarter, data showed
Japan’s economy unexpectedly shrank in the third quarter from a year ago, preliminary official estimates showed. Gross domestic product shrank 1.2 percent in the July-September quarter from a year earlier, missing estimates of 1.1 percent growth in a Reuters poll. — Abigail Off
CNBC Pro: China is easing its measures on Covid. See how market professionals play it
Which Stocks Could Benefit If China Revokes Zero-Covid Policy? Market professionals reveal how to play a reopening as China eases some of its virus controls. Professional subscribers can read more here. — Zavier Ong
Stocks off session lows on Brainard’s comments
The S&P 500 bounced back from lows and Treasury yields retreated from their late-morning highs after Federal Reserve Vice Chairman Lael Brainard said it may “soon” be appropriate to slow the pace of rate hikes, in conversation with Bloomberg News. The S&P 500 was last down just 0.1% after falling more than 0.7% at one point on Monday. The yield on the 10-year note was 5 basis points higher at 3.878% after trading as high as around 3.90% earlier. “I think what’s really important to emphasize is that we’ve done a lot, but we have additional work to do both in raising interest rates and maintaining restraint to bring inflation down to 2 percent over time,” Brainard added. —John Meloy, Jeff Cox
Fed’s Waller message to markets: Rate endpoint ‘another way out’
Fed Governor Christopher Waller said that while the central bank could raise interest rates at a slower pace next month, that should not be interpreted as a easing sign in its fight to reduce inflation. “Stop paying attention to the pace and start paying attention to where the endpoint is going to be. Until we get inflation down, that endpoint is still a ways off,” Waller said on Sunday. Earlier this month, the Fed raised interest rates by 75 basis points to their highest level since 2008. — Fred Ebert
title: “Hong Kong Shares Rise 3 As Tech Shares Climb. China S Activity Data Is Disappointing " ShowToc: true date: “2022-12-09” author: “Rachel Poll”
He explained that 70% of European fertilizer production facilities are idle due to insufficient ammonium nitrate, of which Russia produces a quarter of the world’s production. “I think what Russia is looking for is more concern on the part of the international community about fertilizer demand so that it can implement this agreement,” said Vatikiotis, who added that more emphasis on fertilizer is needed to achieve a reduction in global cost of food. — Lee Ying Shan
Japan’s monetary policy will not change for the next nine to 12 months: Monex Group
The Bank of Japan will remain a “bulwark of stability” for nearly another year because the output gap in the economy remains, Monex Group’s Jesper Koll told CNBC after the release of third-quarter gross domestic product estimates. He said the GDP figure, which missed expectations, confirmed “how sensitive in a negative way the Japanese consumer is” to the current environment. Beyond the next 12 months, the central bank should pay attention to whether the U.S. economy ends up in a soft landing or a hard landing, Koll said. He added that he is watching whether the Japanese government is able to come up with a structural industrial policy that encourages the business community to commit to its own investment spending. — Abigail Off
There is huge value in some Chinese tech stocks, says Primavera Capital
Shares of major Chinese technology companies are currently “downright depressed” and “cheap,” said Fred Hu, founder and chairman of Primavera Capital. Hong Kong’s Hang Seng Tech Index is down more than 30% since the start of the year, although the index has rebounded in recent weeks. The Chinese government’s relentless crackdowns and zero-Covid policy have dented the confidence of tech entrepreneurs and investors, but there is “tremendous deep value” in some tech stocks, Hu said. “China is a nation that every other successful nation would need [for] technology and innovation… I think there is an upside” to many such stocks, he added. — Charmaine Jacob
Chinese tech stocks listed in Hong Kong jump early in the session
Shares of Chinese technology companies listed in Hong Kong rose sharply in the first hour of trading. Tencent rose 7.6%, Meituan gained 5.9% and Alibaba rose 9%. The Hang Seng Tech Index rose about 4%. The moves come despite disappointing activity and retail sales data from China, and after US President Joe Biden and Chinese President Xi Jinping met ahead of the G20 summit in Bali. Chief strategist at private equity firm Safanad, John Rutledge, said the discussion between the two leaders went “much better” than expected, though he attributed that mainly to low expectations.
TSMC shares jump more than 9% on news of Berkshire Hathaway’s stake
Shares of Taiwan-listed Taiwan Semiconductor Manufacturing Company jumped after Berkshire Hathaway announced a $4 billion stake in the company. The stock jumped as much as 9.44%, hitting its highest level in nearly two months. Berkshire added more than 60 million shares of the Taiwanese chipmaker’s US stock, worth $4.1 billion (1.2% of TSM) by the end of the third quarter, making Taiwan Semi the conglomerate’s 10th largest holding at the end of September. The stock was last up about 8%.
China’s industrial production, retail sales miss expectations in October
China’s industrial production rose 5% in October from a year ago, slowing from a 6.3% rise in September. The latest figure missed estimates of a 5.2 percent rise predicted in a Reuters poll. Separately, retail sales in China fell 0.5 percent in October from a year earlier, missing expectations. Analysts polled by Reuters had expected a 1 percent rise and retail sales rose 2.5 percent in September. — Abigail Off
CNBC Pro: Morningstar’s top strategist says stocks are 15% undervalued, shares 6 favorites
With many stocks in a bear market, stocks could be down 15%, according to Morningstar. The US equity research firm’s chief strategist believes the headwinds that existed earlier in the year will begin to subside early next year and benefit stocks. Dave Sekera also shared his assessment of “fair value” on six companies with a “wide financial moat” that will outperform in such an economic environment. CNBC Pro subscribers can read more here. — Ganesh Rao
Australia’s central bank is hinting at bigger rate hikes ahead
The Reserve Bank of Australia hinted at further and possibly bigger interest rate hikes in its efforts to tame inflationary pressures, according to minutes released from its last meeting. “The Governing Council agreed on the importance of returning inflation to target and expects to raise interest rates further over the next period,” it said in the statement. The central bank had considered raising its cash rates by 50 basis points, but saw a stronger case to raise the rate by 25 basis points, it said. The higher rates would be part of wider efforts to “establish a more sustainable balance of demand and supply in the Australian economy”, the RBA said, adding that members had not ruled out returning to higher hikes if necessary. – Jihye Li
Japan’s economy unexpectedly contracted in the third quarter, data showed
Japan’s economy unexpectedly shrank in the third quarter from a year ago, preliminary official estimates showed. Gross domestic product shrank 1.2 percent in the July-September quarter from a year earlier, missing estimates of 1.1 percent growth in a Reuters poll. — Abigail Off
CNBC Pro: China is easing its measures on Covid. See how market professionals play it
Which Stocks Could Benefit If China Revokes Zero-Covid Policy? Market professionals reveal how to play a reopening as China eases some of its virus controls. Professional subscribers can read more here. — Zavier Ong
Stocks off session lows on Brainard’s comments
The S&P 500 bounced back from lows and Treasury yields retreated from their late-morning highs after Federal Reserve Vice Chairman Lael Brainard said it may “soon” be appropriate to slow the pace of rate hikes, in conversation with Bloomberg News. The S&P 500 was last down just 0.1% after falling more than 0.7% at one point on Monday. The yield on the 10-year note was 5 basis points higher at 3.878% after trading as high as around 3.90% earlier. “I think what’s really important to emphasize is that we’ve done a lot, but we have additional work to do both in raising interest rates and maintaining restraint to bring inflation down to 2 percent over time,” Brainard added. —John Meloy, Jeff Cox
Fed’s Waller message to markets: Rate endpoint ‘another way out’
Fed Governor Christopher Waller said that while the central bank could raise interest rates at a slower pace next month, that should not be interpreted as a easing sign in its fight to reduce inflation. “Stop paying attention to the pace and start paying attention to where the endpoint is going to be. Until we get inflation down, that endpoint is still a ways off,” Waller said on Sunday. Earlier this month, the Fed raised interest rates by 75 basis points to their highest level since 2008. — Fred Ebert
