11 minutes ago
2023 will be a surplus year for lithium, says BofA Securities
According to Matty Zhao, Bank of America Securities’ head of Asia Pacific Basic Materials, there will be a surplus of lithium metal in 2023.
“We also see a lot of supply from lithium mines. We expect lithium supply growth of 38% this year. That’s why 2023 is likely to be a surplus year for lithium,” Zhao told CNBC, adding that she expects the growth of electric vehicles in China to slow to 22% this year from 95% last year.
Lithium prices in China are likely to average around 400,000 yuan a ton before dropping to as low as 350,000 yuan in the near term amid higher supply and slower demand for the metal, she estimates.
“We expect lithium prices in China to average around RMB 400,000, and then we expect them to fall to RMB 350,000-400,000 in the short term.”
Lithium prices are currently trading at 382,500 yuan per ton.
– Lee Ying Shan
31 minutes ago
Singapore-based PropertyGuru rose 1.68% as it trimmed net losses by nearly 30%
Singapore-based classifieds company PropertyGuru rose 1.68% as it reported a smaller net loss and improved earnings in its latest earnings report on Wednesday.
Net losses for the fourth quarter of 2022 were S$5.2 million (US$3.86 million), down nearly 30% from SG$7.8 million a year earlier. Revenue increased 17% to SG$40 million for the quarter.
Maximilian Koeswoyo, a research analyst at Phillip Securities, said the 30% improvement in net loss was “commendable.”
“I believe the stock will face some challenges in the short-term, particularly given the slowdown measures being taken by governments across the Southeast Asian region, but I think there will be a major reversal once PropertyGuru starts showing signs of positive net income after tax.” said Koeswoyo.
The stock has lost 42.9% of its value since it was listed in March 2022.
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PropertyGuru stock performance
58 minutes ago
South Korean stocks buck trend after returning from vacation
Seoul-listed stocks traded higher across the board on Thursday afternoon, bucking the trend across the Asia-Pacific region.
Investors continued to digest Wednesday’s economic data, which showed the country posted a narrowing trade deficit as markets closed to watch Independence Day — and China’s surprise rise in purchasing managers’ index data.
The steel and metals industry increased by more than 4.4%, while chemicals increased by 3.6%.
Hyundai Steel was up 6.43%, Posco Holdings was up nearly 6% and Lotte Chemical was up 3.37%. Auto names like Kia rose nearly 4% and electric vehicle battery maker LG Energy Solution rose 2.5% after Tesla’s investor day.
South Korea’s trade official Jeong Dae-jin also held high-level talks with China’s Lie Fei, according to the ministry. The two discussed stabilizing supply chains and called for further cooperation.
2 hours ago
Amazon Web Services plans to invest US$6 billion in Malaysia by 2037
Amazon Web Services announced plans to set up an “infrastructure region” in Malaysia and invest $6 billion in the country by 2037.
An AWS “infrastructure region” is a physical location where the company groups data centers.
According to AWS, the new region and investment reflects the company’s commitment to Malaysia and “meeting the significant and rapidly growing demand for cloud services across Southeast Asia.”
Malaysia’s Prime Minister Anwar Ibrahim called the AWS investment “the largest international technology investment to date” in the country and said it supports Malaysia’s “cloud-first ambitions”.
– Lim Hui Jie
4 hours ago
Hong Kong-listed shares of Nio plunge 12% after missing earnings
Hong Kong-based Chinese electric vehicle maker Nio’s shares have tumbled over 12% after it reported a soaring net loss of 5.79 billion Chinese yuan ($838.9 million) for the fourth quarter.
This follows a nearly 6% drop in US-listed shares on Wednesday night after the results were released.
Hong Kong’s Nio share price is down more than 12% year-to-date and over 55% year-on-year.
3 hours ago
South Korea’s factory activity remains in contraction territory for eighth straight month
South Korea’s Manufacturing PMI remained in contraction territory for the eighth straight month, coming in at 48.5 in January.
While that was flat from December’s figure, S&P Global said in its note that it “indicates a further deterioration in the health of South Korea’s manufacturing sector.”
It also added that the latest PMI data “points to further declines in both manufacturing and new orders amid subdued global economic conditions and ongoing price pressures.”
A PMI reading of 50 indicates expansion, while a reading below 50 signals contraction.
— Lim Hui Jie
4 hours ago
Japanese Banks Showed Interest in Buying Government Bonds: Nikkei
Japanese financial institutions have expressed interest in buying Japanese government bonds and are eyeing the Bank of Japan’s possible turn to policy normalization, the Nikkei reported.
Sumitomo Mitsui told Nikkei that his fundamental thresholds are 1% of 10-year yield and 2% of 20-year yield and expects bullish sentiment to follow as the central bank continues to widen its yield tolerance range.
Mizuho also told Nikkei that domestic investors would buy Japanese government bonds if the central bank scrapped the yield curve control system entirely, adding that she didn’t see any market turmoil following the move.
– Jihye Lee
4 hours ago
Japanese business survey shows weaker outlook for the future
The Japanese Cabinet’s annual business survey showed sector-based gross domestic production forecasts for the coming year averaged 1.3%, down from the previous reading of 1.5%.
The weaker outlook was driven by lower expectations from manufacturers compared to non-manufacturers, the survey showed.
Meanwhile, the survey’s five-year outlook improved to 1.2% from 1.0%, marking its highest reading since 2014.
– Jihye Lee
5 hours before
Tesla supplier shares were mixed after the automaker’s shares fell over 5% after hours
Shares of some of Tesla’s suppliers are trading mixed after the automaker’s shares fell more than 5% in after-hours trading.
LG Chem, which supplies battery cells to Tesla, fell 0.59%. But other providers, such as Panasonic, saw shares rise 0.43%, and Samsung SDI posted a larger rise to 1.95%.
At its Investor Day presentation on Wednesday, the company said its goal is to produce 20 million electric vehicles a year by 2030.
Most notably, Tesla had pledged to halve the production costs of its vehicles, with chief engineer Lars Moravy saying the company expects to build its next-generation vehicles for half the cost of the current Model 3 or Model Y.
11 hours ago
Chinese EV maker Nio slips on lost earnings
U.S.-listed shares of Nio fell about 4% after the Chinese electric vehicle maker reported a bigger-than-expected operating loss of 6,736.1 million Chinese yuan ($976.7 million) for the fourth quarter. That’s a much bigger loss than last year.
“While vehicle revenue of Rmb 14.8 billion (+24% qoq) was broadly in line, vehicle gross margin surprised on the downside at 6.8% (down 9.5 percentage points qoq). The company attributed the sharp margin decline to: 1) inventory provisions; 2) accelerated depreciation of manufacturing assets; and 3) losses on supplier purchase commitments for NT1.0 models,” said Tim Hsiao, an analyst at Morgan Stanley, who is overweight the stock.
The automaker also issued weak guidance, pointed out Citi analyst Jeff Chung. He has a buy rating for the stock, but emphasizes that it’s a high-risk investment “given the company’s start-up positioning, early stage of product shipments, other operational risks, and the risk that original financial investors may buy shares in the future.” sell, as well as the stock’s relatively short trading history.”
UBS, on the other hand, is neutral on the stock, calling it “our least favorite EV name under our coverage.”
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Nio emerged on Wednesday for the loss of earnings.
6 hours ago
South Korea’s industrial production falls for the fourth consecutive month
South Korea saw its industrial production fall 12.7% on an annualized basis in January, marking the fourth consecutive month of decline.
That was a steeper decline compared to December’s revised figure of a 10.5% contraction and also lower than economists’ expectations of 8.9%, according to data from Refinitiv.
The Korean won edged up against the US dollar on Thursday, trading at 1304.42.
– Lim Hui Jie
15 hours ago
Fed’s Kashkari open to higher rate hike at March meeting
Minneapolis Federal Reserve Chairman Neel Kashkari said Wednesday that he was open to the possibility of a larger rate hike at this month’s policy meeting, but had not made a decision yet.
“Whether it’s 25 or 50 basis points, I’m open-minded at this point,” the Fed official said at an event in his home district.
Kashkari, a voting member of the rate-setting Federal Open Market Committee, said the “dot plot” of each member’s future expectations will matter more than what is decided at the March 21-22 meeting.
He noted that his “point” was higher than most other FOMC members at the last meeting, when the committee rolled back the level of previous increases to a quarter point. Kashkari indicated that he is likely to veer back onto the hawkish side given the latest data showing that inflation remains high despite all the rate hikes over the past year.
“At this point I haven’t decided what my point will be, but I tend to keep going up. I would continue to push my political path forward,” he said.
– Jeff Cox
15 hours ago
Manufacturing still in contraction, prices rise in February ISM reading
Manufacturing remained contracting in February as production and new orders slowed, the Institute for Supply Management reported on Wednesday.
The closely watched ISM Manufacturing Index recorded a reading of 47.7%, representing the percentage of companies reporting expansion. A value below 50% represents contraction.
According to Dow Jones, economists had expected a headline value of 47.8%.
More specifically, new orders rose but remained in a decline at 47%, while the production index fell slightly to 47.3%. Importantly, inflation resurfaced in the sector, with the price index rising 6.8 percentage points to 51.3%. Employment slipped into contraction territory at 49.1%.
– Jeff Cox
11 hours ago
Stocks fall as 10-year yield climbs above 4%
The 10-year Treasury yield posted another 4% gain as shares fell in afternoon trade.
The 10-year was at 4.004% in the afternoon. The 10-year yield broke 4% in late morning trading for the first time since November 10, but temporarily fell below that level. Yields move inversely to price.
Traders have been watching the negative correlation between stocks and the 10-year benchmark hovering at the key psychological level of 4%. Chart strategists say the level is not key resistance, but it is important in terms of implications for investor sentiment.
Technology and growth stocks are particularly sensitive to movements in 10-year yields. The Technology Select Sector SPDR Fund, which represents technology stocks in the S&P 500, lost 0.8%.
Bond strategists expect the 10-year yield to continue to rise ahead of the Fed’s March 22 interest rate decision. Any strong inflation or even employment data could be a catalyst for upward movement.
Wells Fargo’s Michael Schumacher said 10-year bonds could easily hit 4.20% in the near term.
– Patti Domm
6 hours ago
CNBC Pro: Is the Traditional 60/40 Portfolio Dead? Morgan Stanley’s Jim Caron has a theory on this
The 60/40 model, in which investors put 60% of their money in stocks and 40% in bonds, was once the linchpin of a typical investment portfolio. Morgan Stanley’s Jim Caron tells CNBC if he still thinks rates are higher for a longer period of time.
Pro subscribers can read more here.
– Zavier Ong
6 hours ago
CNBC Pro: Looking for higher returns? These short-term bond ETFs are the best performers
The rise in Treasury yields is taking markets by storm and investors are now looking for yields in bonds – particularly short-dated ones.
Do you want to benefit from funds with the highest returns? CNBC Pro used Morningstar data to search for quality ultra-short-dated bond funds and ETFs.
CNBC Pro subscribers can read more here.
— Wheat Tan