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Asia-Pacific Markets Fall Mostly as Investors Digest Chinese Economic Data

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Goldman Sachs: China’s ‘exit wave’ on reopening is hurting the economy

China’s “outflow wave” during its reopening process has significantly brought down the economy, economists at Goldman Sachs said in a report.

“The ongoing ‘outflow wave’ due to China’s faster-than-expected reopening has heavily impacted economic activity in recent months, due to rising infections, temporary labor shortages and supply chain disruptions,” it said. in a report. .

“It is very surprising, in our opinion, that the reported figures for December were not worse,” the economists said.

– Jihye Lee

Credit Suisse says iron ore prices will peak at around $130-$140 this year

Iron ore prices are likely to hover around $130-$140 as traders keep China’s reopening in focus, Credit Suisse head of energy and resources research Saul Kavonic said.

“We expect the $130-$140 mark to be where prices end up and peak this year,” he said.

While recent weeks of strengthening iron ore demand have been driven by speculative buying and holiday buying, he says markets are watching how China’s reopening plays out and the implementation of any infrastructure stimulus.

He said these measures “will sustain demand for iron ore throughout this year and into next year”.

Australian mining giant Rio Tinto released its fourth quarter production results, which slightly beat estimates.

“The real focus [of] Rio has been in iron ore supporting the whole sector for the past few months, a call that finally came to fruition late last year and early this year,” he said.

Rio TintoThe company’s shares last traded down 1.11%.

—Lee Ying Shan

China retail sales beat estimates, economy expands more than expected

China’s December retail sales beat estimates, falling just 1.8% on an annualized basis, significantly better than the 8.6% decline projected in a Reuters poll.

Industrial production also rose 1.3% in December, above expectations for a 0.2% increase.

In the fourth quarter, China’s economy grew by 2.9% on an annualized basis, above the expected 1.8% growth. While quarterly growth was flat, it still beat expectations for a 0.8% contraction.

Despite the better than expected data, the Chinese offshore yuan weakened sharply from 6.7403 to 6.7563 against the US Dollar shortly after the release.

Alibaba shares soar after Ryan Cohen allegedly takes a stake in the company

Alibaba shares rose after the Wall Street Journal reported that Ryan Cohen built a stake in the company “worth hundreds of millions of dollars”.

Cohen, who founded online pet retailer Chewy and is also chairman of GameStop, is privately pushing Alibaba to accelerate and further boost its share buyback program, the paper reported.

Alibaba shares listed in Hong Kong rose 2% in the first hour of trading. Since then, the stock pared its gains to trade virtually flat.

– Jihye Lee

China’s Liu He to Meet with US Treasury Secretary Janet Yellen

US Treasury Secretary Janet Yellen is due to hold a meeting with Chinese Vice Premier Liu He on the sidelines of the World Economic Forum, China’s Ministry of Commerce said in a statement.

The two will hold a meeting to “reinforce the coordination of macroeconomic and financial policies”, said the ministry.

The meeting will take place in Zurich on January 18, according to the statement, adding that the two will discuss the implementation of agreements signed between US President Joe Biden and Chinese President Xi Jinping at the end of last year. , in Bali, Indonesia.

The meeting will mark the first face-to-face meeting between Yellen and Liu.

Separately, Politico reported that US Secretary of State Antony Blinken will meet newly appointed Chinese Foreign Minister Qin Gang in Beijing Feb. 5-6, citing Washington diplomats familiar with the matter.

– Jihye Lee

Singapore’s domestic non-oil exports fall more than 20% in December

Singapore’s domestic non-oil exports fell 20.6% in December on an annualized basis, a further decline from the 14.7% decline seen in November.

The sharp decline was mainly driven by exports to China, Indonesia and Hong Kong, according to the government statement. Exports to South Korea and Japan have increased, he said.

The country’s total trade was down 7.7% in the month of December compared to the previous year – with exports down 7.1% and imports also down 8.2%.

Jihye Lee

CNBC Pro: This under-the-radar global carbon capture stock could rise 65%, investment banks say

Shares of an under-the-radar carbon capture company are set to rise 65% on rising global demand for emissions-reducing technology, according to investment banks that track the stock.

The company’s latest innovation, unveiled last week, could reduce the energy needed to capture carbon and improve the company’s profitability in the future, according to analysts at a German investment bank.

CNBC Pro subscribers can read more here.

—Ganesh Rao

Where the major indices are coming out of the first two weeks of trading in 2023

With the first two weeks of trading of 2023 completed, all three major indices are all up so far in the year.

The composite nasdaq is leading the way, adding 5.9% as investors bought losing tech stocks on rising hopes for a better outlook for rising holdings. The S&P 500 and down followed, gaining 4.2% and 3.5%, respectively.

-Alex Harring

Equity futures open lower

Equity futures fell despite the market coming off a winning week.

Dow-linked futures fell 0.1%. S&P 500 and Nasdaq-100 futures fell 0.2% and 0.4%, respectively.

-Alex Harring

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