Hong Kong shares briefly notch 2%; China reviews inflation knowledge according to expectations

Wall Road execs are more and more sounding the alarm on a looming recession.

As financial development slows and inflation stays increased for longer, how ought to traders place? Veteran investor Nancy Tengler shares her favourite dividend shares with CNBC.

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— Zavier Ong

Beijing’s “U-turn” on Covid insurance policies is resulting in each confusion and optimism, stated Steven Lynch, managing director on the British Chamber of Commerce in China.

“There’s a number of optimism and hope for 2023, however there’s big quantities of confusion,” he instructed CNBC’s “Squawk Field Asia,” describing the departure from strict Covid guidelines as occurring “virtually in a single day.”

He stated there should still be “monumental inconsistencies” between native insurance policies and the central authorities’s guidelines, and other people stay involved about falling sick.

“One factor may be very clear Covid is now right here. Covid is fairly rife right here in Beijing. And I feel that brings an entire new set of challenges to what is going on to face China,” he stated.

— Abigail Ng

China’s inflation is prone to keep beneath 3% within the subsequent 12 to 18 months, and the central financial institution is snug with this vary, in response to Jack Siu, Larger China chief funding officer at Credit score Suisse.

“We do not suppose CPI is a matter in China, in actual fact, it is going to be remaining regular inside this vary of 1% to three% within the foreseeable future,” he instructed CNBC’s “Road Indicators Asia.” Inflation soared in lots of economies, however shopper costs in China remained average attributable to weak demand.

However China is prone to see “a resurgence in shopper exercise” within the coming six months as folks get used to dwelling with the virus after some backwards and forwards within the reopening of the economic system, Siu stated.

“Within the second quarter, we anticipate the GDP to rally to six.1% — partly it is base results, partly as a result of individuals are dwelling extra usually,” he stated.

— Abigail Ng

China’s producer value index fell 1.3% in November in comparison with a yr in the past, extending its decline after shedding 1.3% in October, and barely beating estimates for a 1.4% contraction in a Reuters ballot.

The nation’s shopper value index rose 1.6% in November on an annualized foundation, according to expectations and easing from October’s studying of two.1%.

The onshore and offshore Chinese language yuan strengthened, and have been round 6.94 per greenback shortly after the financial knowledge releases.

— Lee Ying Shan

Some international shopper tech corporations may achieve as China relaxes some Covid-19 restrictions, and shares of 4 corporations may rise by greater than 40%, in response to HSBC.

The Asia-focused financial institution stated a faster-than-expected restoration of shopper electronics within the coming months would profit these corporations.

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— Ganesh Rao

South Korea registered a present account surplus of $880 million in October, a decline from September’s $1.6 billion.

Direct funding belongings in South Korea elevated by $2.75 billion, in comparison with $4.74 billion a month in the past. Direct funding liabilities elevated from $430 million to $810 million.

South Korea has been posting a present account surplus for the yr, apart from the months of July and August. A present account surplus signifies {that a} nation sells extra to the world than it buys from outdoors its borders.

— Lee Ying Shan

Shares closed increased, with the S&P 500 snapping its longest dropping streak since October.

The S&P added 0.75% to complete at 3,963.51. The Dow Jones Industrial Common gained 183.56 factors, or 0.55%, to settle at 33,781.48, whereas the Nasdaq Composite rallied 1.13% to finish at 11,082.00.

— Samantha Subin

The price of financing a house has ticked decrease for a fourth consecutive week, in response to Freddie Mac.

The weekly common price on a 30-year mortgage is now 6.33%, down from 6.49% final week. Over the previous month, the rate of interest on these loans has come down about 75 foundation factors: On Nov. 10, the typical price on a set 30-year mortgage was 7.08%.

Even with the decline within the brief time period, the price of financing a house mortgage is up considerably from a yr in the past. Final yr at the moment, the speed on a 30-year mortgage averaged 3.1%.

Regardless of the decline in charges, demand for residence loans continues to say no. Mortgage application volume slid 1.9% final week, in comparison with the week earlier than that, in response to the Mortgage Bankers Affiliation.

— Darla Mercado, Diana Olick

The inversion of the 3-month and 10-year Treasury yield curve is now the deepest since January 2001 at practically 90 foundation factors, in response to CNBC knowledge. The brief finish of the curve soared to 4.30% from simply 0.05% at the start of the yr as merchants priced in increased rates of interest.

The yield curve inverts when shorter-term Treasury charges rise above longer-term yields. Many economists view the 2-year 10-year a part of the yield curve as extra predictive of a possible recession.

Cathie Wooden pointed to that part of the yield curve, which is probably the most inverted because the early Eighties. The favored investor stated the bond market is signaling that the Federal Reserve is making a “critical mistake” with its jumbo price hikes.

— Yun Li