Indonesia and Indian currencies fail to benefit from China reopening: ANZ
Unlike other emerging-market currencies, both the Indonesian rupiah and the Indian rupee haven’t benefited much from China’s reopening, said Khoon Goh, head of Asia research at ANZ Bank.
Those currencies are “lagging behind moves…because these two economies are not seen as big beneficiaries of China’s reopening,” Goh told CNBC’s Street Signs Asia on Thursday.
He added that Chinese tourists are not contributing significantly to overall growth in India or Indonesia.
On the other hand, Goh said the Thai baht has been the strongest currency in Asia so far this year and the Singapore dollar is one of his top picks for 2023.
– Charmaine Jacob
Asia-Pacific Currencies Mixed, Australian Dollar Weakens
Asia-Pacific currencies appreciated on Thursday afternoon, a day after the Bank of Japan said it would keep its control of the yield curve unchanged.
The Japanese yen continued to gain 0.8% and was last seen at 127.89 against the US dollar.
The Korean won also gained nearly 0.4% as the country announced plans to lift a mandatory registration process for foreign equity investors, a move seen as further stimulating foreign investment.
The Australian dollar, meanwhile, weakened more than 0.7% after its weaker-than-expected payrolls data, suggesting the central bank’s rate hikes could be slowing on a deteriorating labor market.
China’s reopening is a boon to Asia’s growth prospects, according to Aberdeen
According to James Thom, senior investment director at Aberdeen Standard Investments, the outlook for Asia is brighter this year, thanks in large part to China’s sudden reopening.
“With all the global concerns and issues, there is a lot to worry about. But I have the feeling that Asia is gradually getting a little better. The outlook is improving somewhat early this year,” he told CNBC’s Street Signs Asia on Thursday.
“Clearly, China’s reopening is a huge swing factor that few anticipated or anticipated and it will be a real boon to growth and supportive of markets,” added Thom.
He also stressed that the “weakening of the US dollar in general is again helping Asian markets”.
—Sumathi Bala
Cryptocurrencies are trading lower following Genesis’ plan to file for bankruptcy
Cryptocurrencies have traded lower as crypto lender Genesis prepares to file for bankruptcy, Bloomberg reported, citing sources close to the matter.
According to data from Coin Metrics, Bitcoin was down 2.51% at $20,742.39. Ether fell 3.66% to $1,522.93.
Just last week, Genesis was indicted along with Gemini by the Securities and Exchange Commission for allegedly selling unregistered securities in connection with a high-yield product being offered to depositors.
Earlier this month, Genesis laid off 30% of its workforce.
– Lee Ying Shan
CNBC Pro: Veteran investor says ‘tech is dead’ and names safer stocks to weather ‘current storm’
After a rough 2022, some investors are returning to the tech industry in droves, but investment veteran Michael Landsberg is skipping the sector.
Favoring safer sectors, he shares the name of five companies he expects to weather the “current storm.”
Pro subscribers can read more here.
– Zavier Ong
Oil prices fall over a dollar as recession fears surface
Oil prices fell more than a dollar after disappointing US retail sales fueled recession fears.
Brent crude futures tumbled 1.21%, or $1.03, to $83.95 a barrel, while US West Texas Intermediate futures fell 1.38%, or $1.10, to $78.38 a barrel .
US retail sales fell 1.1% in December, slightly more than the 1% forecast.
– Lee Ying Shan
Australia’s unemployment rate is holding up, but jobs are suffering
Australia’s unemployment rate rose 3.5% in December, slightly beating Portal expectations from a 48-year low of 3.4%.
The number compares to an unemployment rate of 3.4% for November.
However, December payrolls plummeted by 14,6k, broadly missing expectations of 22,500 growth and a 64k rise for November.
– Lee Ying Shan
CNBC Pro: Morgan Stanley’s Slimmon says stocks will “surprise” Wall Street in 2023 — and names two he likes
Investment veteran Andrew Slimmon said he believes stocks will do “a lot better” this year than most are expecting.
“I’m not so sure about the second half of this year, but I think the surprise will be that the stock market will do better earlier this year than was almost universally predicted by many sell-side strategists,” Slimmon said. Senior portfolio manager at Morgan Stanley Investment Management, told CNBC’s “Squawk Box Asia” on Friday.
He also named two of his favorite stocks.
Pro subscribers can read more here.
– Zavier Ong
Japan reports trade deficit for December
According to official data, Japan ran a trade deficit of 1.45 trillion yen ($11.27 billion) in December.
Japan’s imports rose 20.6% yoy in December, slightly below Portal’ expectations of 22.4%. Its exports grew 11.5% year-on-year compared to an estimate of 10.1%.
The reading would limit trade deficits for Japan for a full year.
– Lee Ying Shan
CNBC Pro: 2023 is going to be tough — but this “extraordinary” stock is rock solid, fund manager says
Many investors are bracing for a tough year with at least a mild recession likely.
Due to the “darker” economic backdrop, fund manager Trent Masters of Alphinity Investment Management told CNBC Pro Talks that he selects stocks with one key trait: yield resilience.
He names a “rock solid” stock that meets this criterion.
CNBC Pro subscribers can read more here.
— Wheat Tan
Shares close lower on Wednesday
All major averages ended the day lower on Wednesday.
The Dow Jones Industrial Average fell 613.89 points, or 1.81%. The S&P 500 lost 1.56% and the Nasdaq Composite lost 1.24%.
– Tanaya Macheel
Fed’s Mester says ‘we must move on’ with rate hikes
Cleveland Federal Reserve Chair Loretta Mester said Wednesday that interest rates must continue to rise even as recent inflation readings ease.
In an interview with the Associated Press, the policymaker said the Fed will likely need to raise its benchmark interest rate above 5% to consistently bring inflation down to the central bank’s 2% target. She noted that markets and the economy coped with December’s half-point rate hike with no problems.
“I just think we have to move on and we will discuss that in conversation [Jan. 31-Feb. 1] meet how much to do at a given meeting,” Mester said. “But my projections and my view of the economy is that we need to do more, we need to get above 5% and then hold it there for some time until we anchor inflation expectations very well at 2%… and inflation on that downward path.” “
The fed funds rate is currently being targeted in a range between 4.25% and 4.5%.
– Jeff Cox
Holiday sales data misses expectations
According to data from the National Retail Federation, holiday sales for 2022 were lower than expected.
The industry group said sales in November and December rose 5.3% year-on-year. The NRF had forecast growth of between 6% and 8%.
Spending at car dealerships, gas stations and restaurants are not included in the data. The sales figures are not adjusted for inflation.
— Jesse Pound, Melissa Repko