Expected week: Asia-Pacific PMIs, trade data, inflation data
Key economic events in the Asia-Pacific region next week will be dominated by the region’s Purchasing Managers’ Index readings.
China’s national statistics bureau is expected to release official manufacturing and non-manufacturing PMI prints on Saturday. Portal expects China’s factory activity to show a fall of 48.
South Korea is expected to release its December trade data over the weekend, in which economists polled by Portal predict a 10.1% year-on-year decline.
Singapore is expected to release manufacturing PMI readings next week, while S&P Global is due to release its PMI readings for South Korea, Indonesia and India on Monday.
Inflation data for the Philippines and Indonesia will also be closely watched, with releases scheduled for Tuesday and Monday respectively.
Japan’s PMI readings and China’s private services PMI survey will be released on Wednesday. Singapore is due to release November retail sales and South Korea’s December unemployment rate on Thursday.
– Jihye Lee
Yamaguchi emerges as the candidate for the next Bank of Japan governor: Sankei
Former deputy governor of the Bank of Japan Hirohide Yamaguchi is stepping up as a candidate to run the central bank, local Japanese media Sankei reported, citing people familiar with the matter.
Yamaguchi, who held the deputy post at the central bank until 2013, has been a vocal critic of current Governor Haruhiko Kuroda’s ultra-dovish monetary policy.
The newspaper added that Yamaguchi would hint at a departure from former Japanese Prime Minister Shinzo Abe’s stimulus strategy, also known as “Abenomics.”
Sankei reported that Yamaguchi is attracting attention as current Prime Minister Fumio Kishida backs away from the stimulus-oriented monetary policy stance and that the appointment of the next central bank governor will become clear next month.
– Jihye Lee
Foreign talent is said to be less inclined to come to Singapore after Hong Kong reopens, says UOB
With Hong Kong reopening, foreigners may be less inclined to move to Singapore, said Alvin Liew, senior economist at United Overseas Bank.
“Singapore has benefited in terms of the talent pool that has come here due to tighter rules in Hong Kong itself,” Liew said, adding that the influx of workers moving to Singapore “may slow down a bit after the city reopens.” “.
“The talent pool itself may be less inclined to move here,” said the Singapore-based economist.
Liew added that Hong Kong’s reopening is a step in the right direction for the region to “get back to business as usual,” Liew said.
Analysts say China’s markets expect a “tactical” recovery next year
Chinese markets are likely to see a “tactical bounce” of recovery in the coming year, Port Shelter Investment Management said.
“It’s just obvious to say that we’re likely to see a tactical upswing,” Richard Harris, the firm’s chief executive, told CNBC.
“It will be tactical because at the end of the day China has to fit in with the rest of the world,” he said.
Harris expects China’s recovery to take place in the first quarter of the year and sentiment to continue into the second quarter.
That recovery also depends on many currently unknown elements, such as whether strong stimulus will be given to the Chinese economy and what will be done about inflation when the economy picks up, he added.
– Lee Ying Shan
New China Tech ETF May Bring ‘Retail Liquidity’ to Singapore Market: Investment Firm
Singapore-listed CSI Star and ChiNext 50 Index Exchange Traded Fund can bring liquidity from mainland China to Singapore, CSOP Asset Management CEO Ding Chen told CNBC’s Squawk Box Asia.
The company’s ETF was listed on the Singapore Stock Exchange on Friday and is a sub-fund of CSOP SG ETF Series I, a Singapore-based mutual fund, according to the fund’s website.
“Singapore and global investors can also gain access to China-listed ETFs through SGX,” Ding said, adding that Chinese investors can also invest directly in Singapore ETFs.
When asked about the development of the company’s ETF portfolio, Ding said it will bring “more emerging, younger generations of tech companies” to market.
-Sheila Chiang
South Korea’s inflation unchanged in December
South Korea’s consumer price index for December rose 5% on an annual basis, Bank of Korea statistics showed.
The reading held cooler levels for the month and was flat from November.
The pressure is in line with expectations of economists polled by Portal.
– Jihye Lee
Stocks close higher on Thursday
All major moving averages closed higher on Thursday.
The Dow Jones Industrial Average rose 345.09 points, or 1.05%. The S&P 500 was up 1.75% and the Nasdaq Composite was up 2.59% to 10,478.09.
– Tanaya Macheel
CNBC Pro: Chip stocks have performed poorly this year — but this fund manager is still bullish, listing 2 to buy
Jobless claims rose last week; The ongoing claims hit the highest level since February
Jobless claims rose last week amid efforts by the US Federal Reserve to cool the economy, and particularly the job market.
First-time jobless claims totaled 225,000 for the week ended December 24, the Labor Department reported Thursday. That was up 9,000 from the previous week and slightly above the Dow Jones estimate of 223,000.
Longer-term ongoing claims, a week behind the headline, jumped to 1.71 million, up from 41,000 to the highest since early February.
The numbers are always loud at this time of year due to the holidays. Non-seasonally adjusted claims increased by 23,146, an increase of 9.3%.
– Jeff Cox
CNBC Pro: Citi names its top biotech stock picks for 2023 — and gives it a 73% upside potential
According to Citi, biotech will remain a “stockpicker market” in 2023.
The bank outlines how biotech might fare using various economic scenarios and three top picks for 2023.
CNBC Pro subscribers can read more here.
— Wheat Tan