An hour ago
Hong Kong property stocks rise as Country Garden extends bond maturity
Hong Kong property stocks rose sharply, leading the Hang Seng gains on Monday.
This comes after struggling developer Country Garden Holdings reportedly received approval to extend payments on an onshore private bond over the weekend and some Chinese banks cut mortgage rates on Friday.
Country Garden shares rose 7.87%, while Evergrande shares rose 7.27%. Other gainers included Longfor Group, which rose 9.44%, and China Resources Land, which rose 9.8%.
At 10 a.m. Hong Kong time, the Hang Seng Mainland Properties Index rose 7.32% from its previous close, marking its biggest daily gain since July 25.
3 hours ago
New Zealand trade expands in the second quarter
New Zealand’s trade grew in the quarter to June, with total trade at 51.8 billion New Zealand dollars, up 4.9% from June 2022.
Government data showed exports of goods and services totaled NZ$25.3 billion in the quarter, up from NZ$23.1 billion a year earlier.
Meanwhile, imports of goods and services totaled NZ$26.6 billion in the quarter, up from NZ$26.3 billion a year earlier.
—Lim Hui Jie
2 hours ago
Arm aims for $47 to $51 per share in IPO: Portal
Semiconductor and software design company Arm is reportedly seeking an IPO price of $47 to $51 per share, Portal reported, citing people familiar with the matter.
This would equate to a valuation of between $50 billion and $54 billion.
Arm is expected to begin marketing its IPO next week.
Sources told Portal that “SoftBank could potentially increase this spread ahead of IPO pricing if investor demand proves strong.” Japanese investment holding SoftBank is Arm’s parent company.
—Portal, Lim Hui Jie
3 hours ago
CNBC Pro: A China fund from Fidelity beats the crowd. How it wants to continue
A Fidelity fund that invests billions of dollars in a China-related strategy is on track to outperform its peers for the second straight year this year, according to Morningstar.
“It is very fashionable or cheap to be underweight China. But we believe there is far too much negative news priced in and sentiment is too pessimistic,” said Catherine Yeung, a Hong Kong-based investment director focused on equities at Fidelity International.
She told CNBC that different parts of the world generally took about 15 months to fully recover from Covid lockdowns.
“China didn’t reopen until January,” she said.
CNBC Pro subscribers can read more here.
Fri, September 1, 2023, 8:36 a.m. EDT
Unemployment rises to 3.8% in August, and average hourly wages rise less than expected
The unemployment rate jumped to 3.8% in August while wages rose less than expected, the U.S. Labor Department said Friday, in signs of a slowing economy and easing price pressures.
According to economists surveyed by Dow Jones, the unemployment rate is expected to be 3.5%, the same level as the previous month. The average hourly wage increased by 0.24% for the month or 4.29% year-on-year. That was less than the 4.4% increase expected by economists.
Nonfarm payrolls rose a seasonally adjusted 187,000 this month, above the 170,000 expected by economists surveyed by Dow Jones. However, the job numbers first reported for June and July were revised downwards by a total of 110,000.
—Samantha Subin
Fri, September 1, 2023, 9:18 a.m. EDT
Traders are increasingly betting that the Federal Reserve is done raising interest rates
Traders are increasingly confident that the Federal Reserve could raise interest rates this year after the unemployment rate in August suggested a slowdown in the labor market.
As of Friday morning, markets believe the Fed will maintain interest rates in September with a 93% probability, according to the CME FedWatch Tool. That’s up from Thursday’s 88% probability.
Meanwhile, the likelihood that the central bank will not raise interest rates in November also rose to 65%. That’s up from 58.9% the day before.
—Sarah Min
Fri, September 1, 2023, 1:04 p.m. EDT
Arm’s highly anticipated IPO could happen later this month
SoftBank-backed Arm’s highly anticipated initial public offering could take place this month and represent a major test of market sentiment, according to Wall Street firm Roth MKM.
“We believe ARM could begin its IPO roadshow as early as next week, with a likely first day of trading before September 20,” Roth told MKM in a note.
The technology giant, headquartered in Cambridge, England, touts advanced chip designs found in almost all of the world’s smartphones. According to Roth MKM, Arm benefits from long-term tailwinds of AI demand as well as non-smartphone semiconductor penetration.
Its debut will be a big signal as to whether the IPO market is ready to recover after a drought due to higher interest rates.
— Yun Li
Fri, September 1, 2023, 2:08 p.m. EDT
The explosive rally in VinFast is quickly fading
Vietnamese electric vehicle maker VinFast failed to cement its meme stock status as its stunning rally quickly faded. After a stunning six-day winning streak, VinFast has lost 60% this week, reducing its gains since its market debut to around 170%.
According to Vanda Research, retail participation in VinFast at the peak of its popularity is still much lower than other popular Asian automakers.