Chipmaker TSMC says November net revenue surged 50% from a year ago
Hong Kong movers: Property, tech stocks rise on reopening optimism
CNBC Pro: Wall Street says a recession is coming. One investment pro names her favorite stocks to tough it out
Wall Street pros are increasingly sounding the alarm on a looming recession.
As economic growth slows and inflation stays higher for longer, how should investors position? Veteran investor Nancy Tengler shares her favorite dividend stocks with CNBC.
Pro subscribers can read more here.
— Xavier Ong
There’s confusion, optimism over China’s shift away from zero-Covid: British Chamber of Commerce
Beijing’s “U-turn” on Covid policies is leading to both confusion and optimism, said Steven Lynch, managing director at the British Chamber of Commerce in China.
“There’s a lot of optimism and hope for 2023, but there is huge amounts of confusion,” he told CNBC’s “Squawk Box Asia,” describing the departure from strict Covid rules as happening “almost overnight.”
He said there may still be “enormous inconsistencies” between local policies and the central government’s rules, and people remain concerned about falling sick.
“One thing is very clear Covid is now here. Covid is pretty rife here in Beijing. And I think that brings a whole new set of challenges to what’s going to face China,” he said.
— Abigail Ng
Credit Suisse says inflation is still not a problem in China
China’s inflation is likely to stay below 3% in the next 12 to 18 months, and the central bank is comfortable with this range, according to Jack Siu, Greater China chief investment officer at Credit Suisse.
“We don’t think CPI is an issue in China, in fact, it’s going to be remaining steady within this range of 1% to 3% in the foreseeable future,” he told CNBC’s “Street Signs Asia.” Inflation soared in many economies, but consumer prices in China remained moderate due to weak demand.
But China is likely to see “a resurgence in consumer activity” in the coming six months as people get used to living with the virus after some back and forth in the reopening of the economy, Siu said.
“In the second quarter, we expect the GDP to rally to 6.1% — partly it’s base effects, partly because people are living more normally,” he said.
— Abigail Ng
China’s producer prices fell in November, while consumer prices rose
China’s producer price index fell 1.3% in November compared to a year ago, extending its decline after shedding 1.3% in October, and slightly beating estimates for a 1.4% contraction in a Reuters poll.
The nation’s consumer price index rose 1.6% in November on an annualized basis, in line with expectations and easing from October’s reading of 2.1%.
The onshore and offshore Chinese yuan strengthened, and were around 6.94 per dollar shortly after the economic data releases.
— Lee Ying Shan
CNBC Pro: These 4 global consumer tech stocks are set to win on China reopening, HSBC says
Some global consumer tech companies could gain as China relaxes some Covid-19 restrictions, and shares of four firms could rise by more than 40%, according to HSBC.
The Asia-focused bank said a faster-than-expected recovery of consumer electronics in the coming months would benefit these companies.
CNBC Pro subscribers can read more here.
— Ganesh Rao
South Korea posts smaller current account surplus for October
South Korea registered a current account surplus of $880 million in October, a decline from September’s $1.6 billion.
Direct investment assets in South Korea increased by $2.75 billion, compared to $4.74 billion a month ago. Direct investment liabilities increased from $430 million to $810 million.
South Korea has been posting a current account surplus for the year, except for the months of July and August. A current account surplus indicates that a country sells more to the world than it buys from outside its borders.
— Lee Ying Shan
Stocks finish higher, S&P 500 breaks 5-day losing streak
Stocks closed higher, with the S&P 500 snapping its longest losing streak since October.
The S&P added 0.75% to finish at 3,963.51. The Dow Jones Industrial Average gained 183.56 points, or 0.55%, to settle at 33,781.48, while the Nasdaq Composite rallied 1.13% to end at 11,082.00.
— Samantha Subin
Interest on 30-year fixed rate mortgages falls
The cost of financing a home has ticked lower for a fourth consecutive week, according to Freddie Mac.
The weekly average rate on a 30-year mortgage is now 6.33%, down from 6.49% last week. Over the past month, the interest rate on these loans has come down about 75 basis points: On Nov. 10, the average rate on a fixed 30-year mortgage was 7.08%.
Even with the decline in the short term, the cost of financing a home loan is up significantly from a year ago. Last year at this time, the rate on a 30-year mortgage averaged 3.1%.
Despite the decline in rates, demand for home loans continues to decline. Mortgage application volume slid 1.9% last week, compared to the week before that, according to the Mortgage Bankers Association.
— Darla Mercado, Diana Olick
Part of the yield curve is now most inverted since 2001
The inversion of the 3-month and 10-year Treasury yield curve is now the deepest since January 2001 at nearly 90 basis points, according to CNBC data. The short end of the curve soared to 4.30% from just 0.05% at the beginning of the year as traders priced in higher interest rates.
The yield curve inverts when shorter-term Treasury rates rise above longer-term yields. Many economists view the 2-year 10-year part of the yield curve as more predictive of a potential recession.
Cathie Wood pointed to that part of the yield curve, which is the most inverted since the early 1980s. The popular investor said the bond market is signaling that the Federal Reserve is making a “serious mistake” with its jumbo rate hikes.
— Yun Li