Hong Kong Stocks Lead Losses in Asia China closes at

Hong Kong Stocks Lead Losses in Asia; China closes at one-month low –

2 hours ago

Thailand’s central bank is maintaining interest rates for the first time since August 2022

Thailand’s central bank left its key interest rate at 2.5% for the first time since August 2022.

The Bank of Thailand’s decision was in line with expectations of economists polled by Portal and marked the first break in eight meetings. During this period, the BOT raised rates by a total of 200 basis points from 0.5% in June last year.

The Thai baht gained slightly against the US dollar following the announcement, trading at 34.71 and hitting its lowest level since August 7.

5 hours ago

Meituan shares fall to 44-month low as delivery company warns of slower growth in fourth quarter

A delivery worker for Meituan in Shanghai, China, on Friday, May 27, 2022.

Bloomberg | Getty Images

Hong Kong-listed shares of Meituan fell more than 11% to HK$91.65 by afternoon trading.

Shares of the Chinese delivery company fell to their lowest level since late March 2020 as the company struck a cautious tone in its third-quarter earnings release, according to a FactSet transcript.

“We expect the gross profit in the fourth quarter to be slightly lower year-on-year than the growth rate in the third quarter,” Meituan management warned in the conference call.

The company said Tuesday that its third-quarter revenue rose 22.1% year-on-year to 76.47 billion Chinese yuan ($10.81 billion). Adjusted net profit was 5.7 billion yuan ($809 million).

5 hours ago

South Korean markets will see the highest earnings growth next year, according to Goldman Sachs

South Korean stocks have so far proven to be an undervalued and unpopular part of the Asia-Pacific stock market, but that could make them attractive to investors next year, according to Goldman Sachs.

Goldman even argued that South Korean markets offer the highest potential earnings growth in Asia Pacific in 2024 as the semiconductor sector recovers from sharp earnings declines. The investment firm remains overweight South Korean stocks.

“We forecast EPS growth to recover to 54% in 2024 and grow another 20% in 2025,” Goldman said, referring to Korea’s benchmark Kospi index.

South Korea is Asia’s fourth-largest economy, but its markets are often viewed by analysts as undervalued, leading to the so-called “Korea discount.”

Read the whole story here.

—Shreyashi Sanyal

6 hours ago

The New Zealand dollar rises 1% as the central bank keeps interest rates on hold and warns of further rate hikes

Pedestrians walk past the Reserve Bank of New Zealand headquarters in Wellington, New Zealand, Thursday, September 13, 2012.

Mark Coote | Bloomberg | Getty Images

The New Zealand dollar rose 1% to almost 0.62 against the U.S. dollar after the Reserve Bank of New Zealand left its official interest rate at 5.5% and warned rates could rise to combat inflation.

The Kiwi dollar jumped to its highest level in almost four months following the decision. The currency is down 2.5% so far this year and is heading for its third straight annual decline.

The central bank noted that inflation was still too high and said monetary policy must remain restrictive to bring it under control.

Read the whole story here.

9 hours ago

Australia’s inflation rate slowed more than expected in October

Australia’s weighted inflation rate slowed more than expected in October to 4.9%, compared with 5.2% expected by economists polled by Portal.

This was also lower than the 5.6% in September. The headline inflation rate was 4.8%, the lowest since January 2022.

The country’s statistics office said the biggest price increases were in housing, food and non-alcoholic drinks, and transportation.

—Lim Hui Jie

13 hours ago

The most important indices are heading for the best monthly performance this year

Despite subdued trading on Tuesday, the three major indexes are on track to post big monthly gains.

The Dow is poised to end the November trading month, which ends at Thursday’s closing bell, up 6.9%. That would be the best monthly performance since October 2022, when the blue-chip average gained 14%.

The S&P 500 is on track to rise 8.6% at the end of November. The Nasdaq Composite has outperformed, rising 10.8% so far in the penultimate month of 2023.

If these performances continue, it would be the best month for both since July 2022. For the month, the broad S&P 500 rose 9.1%, while the tech-heavy Nasdaq gained 12.4%.

—Alex Harring

13 hours ago

Oil settles 2% higher as speculation over the OPEC meeting moves the market

Oil prices rebounded on Tuesday as traders speculated about OPEC production cuts, while a powerful storm forced Kazakhstan to cut production.

The West Texas Intermediate January contract rose $1.55, or 2.07%, to close at $76.41 a barrel, while the January Brent crude oil contract rose $1.70, or 2, Gained 13% and closed at $81.68.

OPEC and its OPEC+ allies are scheduled to meet virtually on Thursday, with most analysts expecting the group to extend current cuts at least through 2024.

OPEC delegates told Bloomberg on Monday that Saudi Arabia was urging members to reduce their production quotas, but Riyadh was facing resistance.

“As oil awaits the OPEC Plus agreement, speculation about a deal or no deal or a surprise cut continues to move markets,” said Phil Flynn of Price Futures Group.

The upside potential of the cuts should be limited as OPEC members currently have little interest in compliance, said Tamas Varga of OVM Oil Associates.

Kazakhstan’s biggest oil fields, meanwhile, have cut production by 56% as a Black Sea storm disrupts exports.

–Spencer Kimball

14 hours ago

Retail stocks outperformed on Tuesday

The early signs of consumer strength as the holiday shopping season begins appear to be making investors more comfortable with retail stocks.

The SPDR S&P Retail ETF (XRT) rose about 1% on Tuesday, outperforming the broader market and erasing the modest decline the fund suffered on Monday.

See grafic…

Retail stocks outperformed on Tuesday.

Among the fund’s top holdings, Foot Locker was among the top performers, up nearly 3%.

–Jesse Pound

16 hours ago

The IPO pipeline is becoming crowded again as the market recovers towards the end of the year

The IPO market has revived as interest rates stabilize and the stock market strengthens through the end of the year.

Fast fashion company Shein, founded in China, has confidentially applied to go public in the US as early as 2024. Meanwhile, Kim Kardashian’s shapewear label Skims is reportedly discussing strategic options, including an IPO, which could happen next year. Social media company Reddit has reportedly resumed discussions about an IPO.

The flurry of action follows the mixed performance of a handful of big-ticket debuts in recent months. Shares of grocery delivery company Instacart and German shoe brand Birkenstock have both fallen below their IPO prices, while chip giant Arm – the biggest IPO of 2023 – has seen significant gains.

The IPO market experienced a significant lull in 2022 and early 2023 as an aggressive Federal Reserve, recession fears and geopolitical risks curbed appetite. Companies are now hoping to test the waters in hopes that the Fed will finish raising interest rates and bring about a soft landing that would keep the market hot.

— Yun Li