Asia-Pacific stocks struggle for direction ahead of Bank of Japan interest rate decision

Asia-Pacific stocks struggle for direction ahead of Bank of Japan interest rate decision

Japan’s core manufacturing orders fall more than expected in November

According to official data, Japan’s manufacturing orders fell 8.3% in November compared to the previous month.

The decline was significantly larger than Portal’ expectations of a 0.9% decline. On an annual basis, construction orders decreased by 3.7%.

Private fleet figures exclude orders from volatile vessels and electricity companies.

– Lee Ying Shan

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CNBC Pro: Morgan Stanley says cheaper electric vehicles are coming — and names the global stocks that will benefit

As electric cars become more popular, a new manufacturing technique that could make them more affordable is attracting interest, according to Morgan Stanley.

Some automakers are outsourcing the process, which could benefit three top Asian parts suppliers, the Wall Street Bank said.

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— Ganesh Rao

Stocks ended the day mixed, with the Dow falling nearly 400 points

The Dow Jones Industrial Average Index fell late in the day as Goldman Sachs stocks 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 was up 0.14% to end the day at 11,095.11.

– Tanaya Macheel

Bank of America sees recession starting later

A recession is unlikely to start until later in 2023 as consumer spending was stronger than expected and the Federal Reserve eased its pace of increasing rate hikes, according to Bank of America.

“We are shifting the timing of our forecast for a mild US recession by about a quarter as consumer spending is sustained on strong labor markets, excessive savings, falling energy prices and easier financial conditions,” the company said in a note to clients. “Nevertheless, we believe the headwinds will prompt consumers to reduce spending and increase savings rates throughout the year.”

Thus the recession begins in the second quarter, driven by an investment-driven slowdown that is affecting consumer spending.

After raising interest rates by 4.25 percentage points in 2022, the Fed is expected to ease with a 0.25 percentage point hike in February. More quarter point gains are forecast to follow in March and May.

Rate cuts are unlikely to happen until 2024, the company said.

– Jeff Cox

Goldman Sachs shares fall on earnings miss

Goldman Sachs shares slipped 2.4% after investment bank Wall Street released fourth-quarter results that missed analysts’ expectations for both top-line and bottom-line earnings.

The bank reported earnings of $3.32 per share on revenue of $10.59 billion. Consensus estimates are for earnings of $5.48 per share on sales of $10.83 billion, according to analysts polled by Refinitiv.

Loan loss provisions were also slightly above expectations.

– Hugh Son, Samantha Subin