Asia-Pacific Markets, Fed, Wall Street, Apple, Tesla, Japan PMI

Alibaba shares soar after Ant Group gets approval for capital plan

Shares of Hong Kong-listed Alibaba rose 7.11% in morning trade on Wednesday after China’s Banking and Insurance Regulatory Commission approved Ant Group’s plan for a capital expansion plan for its Chongqing-based consumer financial unit.

Chinese regulators gave the go-ahead for billionaire Jack Ma’s financial technology firm to raise 10.5 billion yuan ($1.5 billion), according to a notice posted last week.

Ant Group is an affiliate of Alibaba in which the e-commerce giant has a 33% stake. Ant Group operates the Alipay mobile payment wallet in China. Alibaba shares rose 2.78% in the first trading session Tuesday after the notice was posted.

Other companies named in the notice include Hangzhou Jintou Digital Technology Group, Nanyang Commercial Bank, Zhejiang Sunny Optical and China Huarong Asset Management.

The approval marks progress in the state-led regulatory overhaul of the fintech giant.

– Jihye Li, Evelyn Cheng

CNBC Pro: Analysts see these 10 global renewable energy stocks rising despite higher rates with offers up 50%

Skyrocketing energy costs have spurred investment in renewable energy around the world.

Swiss investment bank UBS named 10 leading renewable energy players that are taking advantage of the trend and are poised to outperform next year.

CNBC Pro subscribers can read more here.

Ganesh Rao

Japan’s manufacturing activity weakest in more than two years

The AU Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index posted a reading of 48.9 for December, marking a second consecutive month in contraction territory.

The reading came down from November’s 49.0, and marked the weakest figure since October 2020’s figure of 48.70.

The report said that the continued contraction in output was attributed to “weak global economic trends”.

-Lee Ying Shan

Tesla’s Asia suppliers drop after delivery report

Tesla’s suppliers in Asia fell short after it reported fourth-quarter vehicle production and delivery numbers for 2022 that fell short of expectations.

The deliveries report showed a total of 405,278 deliveries for the quarter and a total of 1.31 million deliveries for the year, which is lower than expected to see approximately 427,000 deliveries for the final quarter of the year.

of japan Panasonic South Korea’s LG Chem fell 0.17% in early hours and Samsung SDI fell nearly 2% – down 1.82% in early Asia trade.

Shenzhen-listed shares of Contemporary Amperex Technology, or also known as CATL, fell 1.7%. Tesla shares closed down 12% on Wall Street on Tuesday.

– Ashley Capote, Jihye Lee

CNBC Pro: Wall Street Is Bullshit on This Chip Giant, Morgan Stanley Has Gave It 55% Upside

The once-hot chip sector suffered in 2022, but Wall Street is looking more optimistic on semiconductor stocks for the year ahead.

Recently, given the importance of chips in several major secular trends, many professionals have urged investors to take a long-term view on the sector.

Analysts specifically named one stock as bullish, citing its earnings potential and future profitability.

CNBC Pro subscribers can read more here.

– Weizen Tan

Apple’s Asia suppliers mostly trading despite reports of production cuts

US Manufacturing PMI slips at fastest rate since May 2020

According to S&P Global, the US Manufacturing Price Managers’ Index, a measure of output, declined in December at the fastest rate since May 2020.

According to data released on Tuesday, the index stood at 46.2 in December, up from 47.7 in November. Lower prices and contracted production levels put pressure on the index. In addition, December saw a larger-than-expected decline in new sales, with companies taking note of the uncertainty caused by the economic backdrop.

-Carmen Renicke

Tesla shed 13%, hit a 52-week low

The stock slumped more than 13%, gains not seen since August 2020. The fall is coming off the worst annual performance for the stock — Tesla fell 65% in 2022.

-Carmen Renicke

Apple’s market cap has dropped below $2 trillion

sold in Apple Shares pushed the iPhone maker’s market capitalization below $2 trillion on Tuesday.

Shares fell 4% amid reports of production cuts for some items reportedly due to weak demand. Concerns over iPhone supplies during the holiday period have risen in recent weeks and a shutdown through Apple’s key supplier in China has weighed on shares.

The decline in shares is in stark contrast to a year ago, when Apple became the first US company to reach a market cap of $3 trillion.

Apple was the last of the mega cap technology stocks to hover above the $2 trillion mark.

-Samantha Subin

Goldman Sachs says US will avoid recession in 2023

Goldman Sachs has given an outside consensus forecast for the US economy in 2023.

“Our economists believe the US will avoid a recession as the Fed successfully makes a soft landing of the economy,” the analysts wrote Tuesday.

“This forecast outside consensus partially reflects our view that a period of lower-than-potential growth is sufficient to gradually rebalance the labor market and ease wage and price pressures,” the note said. ” “But it also reflects our analysis which indicates that fiscal and monetary policy tightening will lead to a sharp easing next year, contrary to the consensus that the effects of interest rate hikes will lead to a recession in 2023.”

In addition, the bank today raised its 4Q22 GDP growth forecast by 10bp to +2.1% on the back of a surprisingly strong November construction spending release

“The divergence between the resilience of the US economy in 2022 and the downdraft experienced by stocks has been a dominant narrative of the past year,” Goldman said. “And, whether this disconnect continues, or whether the economy matches the market’s downdraft, or whether the market returns in the wake of an economic soft landing may be at least part of the 2023 narrative.”

-Carmen Renicke

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