Before an hour
Tech Stocks Lead Hong Kong Index Rise; Baidu up over 10%
The Hang Seng index led gains in Asia-Pacific on Friday, partly due to the rise in tech stocks.
Baidu rose nearly 12% after its U.S.-listed shares rose overnight following the launch of its Chinese-language ChatGPT alternative, dubbed Ernie Bot.
Shares in streaming platform company Bilibili were also up nearly 8% in early trade.
The HSI itself rose 1.21%, while the tech-heavy Hang Seng Tech Index was up 3.13%.
— Lim Hui Jie
Before an hour
New Zealand bans TikTok for devices with access to the parliamentary network
New Zealand will ban TikTok for devices with access to the parliamentary network, Portal reported, citing Parliamentary Service chief executive Rafael Gonzalez-Montero.
Gonzalez-Montero told Portal in an email that the decision was made after consultation with cybersecurity experts and discussions within the government.
The move comes after CNBC confirmed reports that the US had urged TikTok’s Chinese parent company Bytedance to divest its stake in the app or face a potential US ban. The UK also announced plans to ban the video app on government devices.
— Arjun Kharpal, Jihye Lee
2 hours ago
Indonesian central bank leaves interest rates unchanged at 6.5%
The Indonesian central bank has kept its 7-day reverse repo rate at 5.75% and its lending rate at 6.5%.
In a press release, the bank said the decision was “in line” with its monetary policy stance to ensure lower inflation expectations and inflation.
The central bank aims to bring the core inflation rate to a ±1% range from 3% in the first half of 2023 and headline inflation to the same range in the second half of the year.
The Indonesian rupiah was trading unchanged at 15,375 against the US dollar on Friday following the announcement.
— Lim Hui Jie
2 hours ago
CNBC Pro: Short sellers are doubling down on these European banks — and Credit Suisse isn’t their primary target
2 hours ago
Forecasts for Japan’s wage growth in 2023 rose to over 3%, research says
The Japan Center for Economic Research said the consensus forecast for the economy’s wage growth in 2023 was upgraded to 3.05% in March, from an expected rise of 2.85% in January.
This would be the strongest growth in Japan since 1994, the Nikkei reported.
In the research survey, most respondents revised upwards their estimates of total wages and the base salary component, the press release showed.
Japan’s Shunto wage negotiations concluded on Wednesday, Portal reported — marking the biggest wage increases in decades as inflation rates soar.
– Jihye Lee
2 hours ago
Baidu shares surge in US trades after the release of ChatGPT rival
Chinese tech company Baidu unveiled its ChatGPT rival, dubbed Ernie Bot in English, on Thursday.
Shares ended 3.8% higher in the US, in contrast to a steep drop of nearly 6.4% in Hong Kong trading on Thursday.
Baidu’s Ernie bot works primarily in Chinese, although the chatbot can also understand English. The company’s business partners were given priority in initial access to the Ernie bot.
2 hours ago
China’s home prices have been growing at the fastest monthly rate since July 2021
House prices in China rose 0.3% in February compared to January but fell 1.2% year on year, according to 70-city Refinitiv data from the National Bureau of Statistics.
Month-on-month, home prices rose at the fastest pace since July 2021 as investors look to more accommodative government policies. In January, prices increased by 0.1% on a monthly basis.
Data from 55 cities reported increases in new home prices in February, compared to 36 cities that reported increases in January.
– Jihye Lee
2 hours ago
Singapore’s non-oil domestic exports continue to decline
Singapore’s non-oil domestic exports fell 15.6% yoy in February – less than expected, which posted a 16% drop. In January, the value fell by 25% on an annual basis.
Compared to the previous month, non-oil domestic exports fell by 8%, down 0.5% more than expected. The monthly value rose slightly by 0.9% in the previous month.
Non-oil domestic exports for Singapore’s top 10 overall markets fell in February 2023, based on government data – particularly to the European Union, Hong Kong and Taiwan, while exports to the US, Japan and Thailand rose.
– Jihye Lee
2 hours ago
CNBC Pro: Tesla vs. BYD: Market pros pick their favorite EV giant
Tesla has long been an investor favorite when it comes to making the switch to electric vehicles, but not everyone is convinced. For example, Berkshire Hathaway-backed BYD is often touted as a better pick than Tesla.
Constellation Research’s Ray Wang believes that Tesla vs. BYD “is really going to be a story for the ages.”
Pro subscribers can find out which stock is their favorite here.
– Zavier Ong
20 hours ago
South Korea says Japan has agreed to lift export restrictions on chip materials
South Korea said Japan has agreed to lift export restrictions on three semiconductor materials to Seoul, the Ministry of Commerce, Industry and Energy said in a statement.
Seoul also said it would end its dispute against Tokyo with the World Trade Organization once the lifting is in place, the ministry said.
Japan removed South Korea from its “white list” of preferred trading partners in 2019 after South Korean court rulings ordered Japanese firms to compensate wartime slave laborers.
– Jihye Lee
13 hours ago
European Central Bank raises by 50 basis points despite banking turmoil
The European Central Bank continued the 50 basis point rate hike announced at its previous meeting, despite continued volatility in the banking sector.
Markets had scaled back bets on a rise after last week’s severe sell-off in European bank stocks.
It takes the bank’s base rate to 3%.
Headline inflation in the eurozone is 8.5%, well above the central bank’s target of 2%.
“The heightened level of uncertainty reinforces the importance of a data-driven approach to the Governing Council’s policy rate decisions, given its assessment of the inflation outlook in light of incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission,” said the ECB in its decision.
Read more here.
– Jennie Reid
9 hours ago
Bank of America and Wells Fargo are among the top contributors to the First Republic’s $30 billion deposit plan
The potential First Republic deposit discussed by major US banks has grown to $30 billion, reports CNBC’s David Faber.
The biggest contributors would come from Bank of America, Wells Fargo, Citigroup and JPMorgan Chase, each with about $5 billion. Morgan Stanley and Goldman Sachs will each pledge around $2.5 billion, the sources said. Truist, PNC, US Bancorp, State Street and Bank of New York will each pledge about $1 billion.
— Jesse Pound
12 hours ago
Big tech stocks are driving the market higher
Big tech stocks surged higher on Thursday, shaking off fears of the unfolding banking crisis. Amazon shares gained 3.3%, while Google parent Alphabet rose 3%. Apple, Meta and Netflix also traded higher.
The strength of the tech heavyweights pushed the major stock averages green during morning trading. Investors could flock to Big Tech to embrace their megacap safety while betting that the current turmoil will keep the Fed from raising rates, benefiting growth stocks.
— Yun-Li
12 hours ago
Goldman says problems in the banks increase the likelihood of a recession
According to Goldman Sachs, the turbulence in the banking sector is putting the US economy at greater risk of recession.
The Wall Street company raised its probability of a decline over the next 12 months to 35%, up 10 percentage points, “reflecting heightened near-term uncertainty about the economic impact of stress on small banks,” Goldman economist Manuel Abecasis said to a customer note Wednesday evening.
Regional bank stocks took a hit on Thursday. The SPDR S&P Regional Banking ETF tumbled 3.7% in early trade.
– Jeff Cox
10 hours ago
Group of institutions in talks to deposit about $20 billion in First Republic, sources say
Sources told CNBC’s David Faber that a group of financial institutions — including Goldman Sachs, Citigroup and JPMorgan Chase — are in talks to deposit about $20 billion in First Republic.
The news comes after First Republic shares have come under severe pressure in recent days, sparked by the collapse of Silicon Valley Bank last Friday and Signature Bank over the weekend.
First Republic shares were down more than 30% earlier in the day. In early afternoon trading, however, the stock fell just 3.3% before being halted on volatility.
— Jesse Pound, Fred Imbert