Hong Kong’s Hang Seng Index rose 2%, driven by the financial and technology sectors
Hong Kong’s Hang Seng Index rose more than 2% in early trading, leading broader gains in the region, led by financial and technology stocks.
Index heavyweights are in the green. Alibaba’s Hong Kong-listed shares are trading 2.27% higher. Meituan rose 3.02% and shares of Tencent rose 2.4%.
Shares of banks ICBC and HSBC also rose by 2.78% and 1.97%, respectively. Ping An rose 2.48%.
Other winners also include energy companies. ENN Energy Holdings rose 4.14% and Hong Kong and China Gas gained 3.36%.
–Lee Ying Shan
Reserve Bank of India leaves interest rates unchanged at 6.5%
The Reserve Bank of India kept its interest rate stable at 6.5%, in line with Portal expectations.
“The Reserve Bank is worried. We have identified high inflation as a major risk to macroeconomic stability and sustainable growth,” RBI Governor Shri Shaktikanta Das said at the monetary policy statement conference.
India’s retail inflation stood at 6.83% year-on-year in August as food inflation continues.
“Our monetary policy remains firmly focused on keeping inflation permanently in line with the 4 percent target,” he said.
–Lee Ying Shan
The Reserve Bank of India expects to keep interest rates stable
The Reserve Bank of India is expected to maintain its hawkish stance and keep interest rates steady at 6.5% when its three-day meeting ends on Friday, a Portal poll showed.
“The RBI’s Monetary Policy Committee is expected to maintain its hawkish pause and stick to the ‘withdrawal of easing measures’ today,” a DBS note published on Friday predicted.
Policymakers are expected to weigh global economic conditions such as the U.S. dollar and oil prices.
“Inflation is on track to return to the 2-6% target range in September after posting a vegetable-led rise in July and August, along with a stable core, but policymakers will take a forward-looking view,” said DBS Bank senior economist Radhika Rao wrote in the note.
India’s retail inflation stood at 6.83% year-on-year in August, down from 7.44% in July. However, the figure still remained above the central bank’s target of 2% to 6%.
–Lee Ying Shan
CNBC Pro: ‘Tremendous opportunity’: Oakmark’s Bill Nygren says it’s a good time to buy these three cheaper stocks
According to Bill Nygren of Oakmark Funds, now is a good time to buy cheap stocks in some sectors.
The leading value fund manager said what was “really unusual today” was the wide spread in price-to-earnings ratios.
He names three stocks to consider.
CNBC Pro subscribers can read more here.
– Weizhen Tan
CNBC Pro: Morgan Stanley says these global stocks will soar on the $150 billion generative AI boom
Generative artificial intelligence – or the use of generative models using AI to generate text, images or other media – is taking the world by storm, and it’s not just U.S. tech giants that stand to benefit, Morgan Stanley says.
In an Oct. 2 note, the bank’s analysts led by Adam Wood emphasized that the technology enables the automation of multiple categories of work and “will increase global software spending by….” [around] $150 billion over the next three years.”
So which global stocks are likely to benefit from this trend?
CNBC Pro subscribers can read more here.
—Amala Balakrishner
Natural gas prices are skyrocketing
Natural gas futures rose 7.3% on Thursday after Energy Information Administration data showed domestic gas inventories last week were above the five-year average for this time of year.
Federal data released Wednesday also showed that the U.S. exported more natural gas in the first half of 2023 than in the same period a year earlier. Natural gas exports averaged 20.4 billion cubic feet per day.
—Pia Singh
Gold hits its lowest level since March
Gold hit a low not seen since March on Thursday.
Prices fell as low as $1,826.20. The metal last traded at lower levels on March 9, when it hit $1,815.40.
Gold prices have fallen about 2% so far this week, putting them on track for their third straight week of losses.
— Alex Harring, Gina Francolla
OPEC could intervene if oil decline continues, says Helima Croft
The sharp decline in oil prices, which has caused West Texas Intermediate futures to fall by more than $10 a barrel, could trigger a reaction from oil-producing countries, according to Helima Croft, global head of commodities strategy at RBC Capital Markets
“I think OPEC is a different OPEC than it was in 2015. … If we continue to see selling pressure over the next few days, I would expect it to look like there will be a sharp sell-off, potentially in “I think that in the 1970s we will at least hear very clear statements from OPEC about a possible re-entry,” Croft said in “Squawk Box.”
“I think this market continues to be stronger than this sale currently leads us to believe,” Croft added.
West Texas Intermediate crude oil futures fell 1.7% to $82.78 a barrel in morning trading.
–Jesse Pound