Stocks down, Japanese yen nearing 150 to the dollar

Stocks down, Japanese yen nearing 150 to the dollar
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Hong Kong-listed airlines briefly boost news that China is in talks to ease quarantine

Hong Kong-listed shares of some Chinese airlines rose briefly after a Bloomberg report that Chinese officials discussed easing quarantine periods for incoming travelers.

Shortly after the report, China Southern Airlines rose about 3%, Air China about 2% and China Eastern Airlines more than 1%. The stock has pared most of its gains since then.

In Japan, ANA Holdings rose by 1.54%, and Japan Airlines by 1.36%.

Meanwhile, shares of Cathay Pacific continued to trade down more than 2% last week, while Korean airlines and travel-related stocks were down about 2%.

– Jihye Lee

DoubleLine Capital’s Gundlach says Treasury yields could peak before the end of the year

DoubleLine Capital CEO Jeffrey Gundlach said U.S. Treasury yields “could peak between now and the end of the year.”

“Notice how flat the long end is,” he said in a tweet, followed by a list of current income levels. “A sign of productivity increases exhaustion.”

The 10-year Treasury yield It rose to 4,154% during the US market session after reaching its highest level since July 2008. It was last at 4.1485%. The 2 year treasury note the latter was traded at 4.5695% 5 year note It was traded at 4.3712%.

– Jihye Lee

Despite the release of US strategic oil reserves, oil prices rise

Oil prices rose on Thursday after markets dismissed reports that the US would release more crude oil from its stockpiles.

Brent oil futures It rose 0.85%, or 0.80 inches, to $92.41 a barrel. US West Texas Mid increased by more than 1.45% and amounted to 85.55 dollars/barrel.

Vivek Dhar of the Commonwealth Bank of Australia noted in a note that “Upward pressure comes from OPEC+ supply cuts and EU sanctions against seaborne imports of Russian oil.”

He added that the release of 15 million barrels of US strategic oil reserves was already expected and “too small to affect the market”.

– Lee Yingshan

Australia’s unemployment rate is steady at 3.5%

Australia’s unemployment rate for September was 3.5%, unchanged from the previous month. According to the Australian Bureau of Statistics – In line with analysts’ expectations in a Reuters poll.

Diana Mousina, chief economist at AMP Capital, said she expects the unemployment rate to remain at current levels in the near term before rising next year.

“Employment growth would need to slow significantly to see the unemployment rate rise in the short term,” he said in a note.

– Abigail Ng

CNBC Pro: Taking refuge in bonds ahead of recession? BlackRock says it’s an “outdated” playbook

BlackRock says recession fears are roiling markets, but the typical playbook for covering sovereign bonds is “outdated.”

“In this environment, bond chasers have returned and herald the return of the term premium,” BlackRock said, adding that it was underweight on government bonds.

Investors can still buy other types of bonds, the asset manager says.

CNBC Pro subscribers can read more here.

– Weizhen Tan

China keeps its standard lending rates unchanged

China’s central bank left its key lending rates unchanged for the second straight month, in line with most analysts’ expectations in a Reuters poll.

The People’s Bank of China said it will keep the one-year lending rate at 3.65%, and the five-year interest rate at 4.30%. according to the announcement.

The PBOC also announced earlier in the week that it would keep medium-term policy lending rates steady.

– Jihye Lee

Tech stocks fall in Hong Kong, dragging the broader index lower

Shares of Hong Kong-listed technology companies fell sharply in early trade, with the Hang Seng Tech index down 4.6% and dragging the broader Hang Seng index lower.

Heavy weight Alibaba decreased by 6.12% Tencent It decreased by 4.26%.

Known and decreased by 7.75% It lost 5.82%. Meituan It decreased by 6.23%.

– Abigail Ng

The Japanese yen is approaching 150 against the US dollar

the Japanese Yen It approached 150 against the dollar, levels not seen since August 1990. It was last at 149.94 to the dollar.

The yen hovered around the 159.8 level in April 1990 and last crossed the 160 level in December 1986.

Japanese officials on Thursday cautioned against further weakening of the currency, with Finance Minister Shunichi Suzuki saying the government would “take appropriate steps against excessive volatility.” This was reported by Reuters.

“Recently, the yen’s rapid and one-sided declines are undesirable. We absolutely cannot tolerate extreme volatility caused by speculative trading,” he said.

– Jihye Lee

CNBC Pro: Chip stocks are down for the year — but one looks ‘really inviting,’ fund manager says

Semiconductor stocks have slumped this year, but investors with a longer-term view of chips’ importance to global trends like 5G, electrification and artificial intelligence can buy those prices.

Hedge fund manager David Neuhauser shares a chip stock he likes.

Pro subscribers you can read more here.

– Xavier Ong

Japan’s trade deficit narrows slightly for September

Japan’s September trade deficit was 2.09 trillion yen ($13.97 billion). according to provisional government figures – A Reuters poll did not have estimates for a 2.17 trillion yen deficit.

In August, the country reported a trade deficit of ¥2.82 trillion.

For the month of September, exports were 8.82 trillion yen, and imports were 10.9 trillion yen.

Japan’s trade deficit for the first half of the 2022-2023 fiscal year has reached a record high, the finance ministry said, citing a Reuters report.

Japan’s fiscal year begins in April, and the deficit for the April-September period was 11 trillion yen.

– Abigail Ng

China’s offshore yuan hit a record high overnight

The offshore yuan hit a record high of 7.2745 against the dollar overnight as the National Congress of the Communist Party of China continued. The offshore yuan It last traded at 7.2708 per dollar.

According to a note from the Commonwealth Bank of Australia, “the Chinese government’s relaxation of its strict zero-Covid policy is a huge uncertainty.”

Analysts wrote that strict measures will continue until the beginning of 2023.

“Restrictions will prolong the period of weakness in the Chinese economy and keep AUD/USD and NZD/USD lower for longer, pushing USD/CNH to 7.30,” the note said.

Sensitive to risk Australian dollar It weakened to $0.6264 in early Asia New Zealand dollar It changed hands for $0.5662.

– Abigail Ng

Investors are attracted to rising Treasury yields

Investors watched Treasury yields for bearish signals on Wednesday, although a stronger-than-expected start to the earnings season helped revive markets this week.

Of the 64 companies in the S&P 500 that reported third-quarter results through Wednesday, 69.4% beat expectations, according to FactSet data.

Still, rising Treasury yields helped stocks return to “real life” on Wednesday, according to comments from LPL Financial’s Quincy Krosby. On Wednesday, the yield on the 10-year Treasury rose to 4.136%, or the highest level since July 2008.

“The fixed 3-month/10-year Treasury will reinforce the market’s signal that a recession is on the way, as it has a reputation for predicting severe economic downturns,” Crosby wrote.

– Sara Min

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