The week ahead: PMIs, trade data, inflation readings in Asia-Pacific
Major economic events in the Asia-Pacific region next week will dominate readings of the Purchasing Managers’ Index in the region.
China’s National Bureau of Statistics is scheduled to release official manufacturing and non-manufacturing PMI prints on Saturday. Reuters expects China’s factory activity to show a contraction with a reading of 48.
South Korea is also set to report its December trade data over the weekend, which economists polled by Reuters forecast would show a 10.1% decline from a year earlier.
Singapore is due to release manufacturing PMI readings next week, while S&P Global is due to release PMI readings for South Korea, Indonesia and India on Monday.
Inflation prints for the Philippines and Indonesia will also be closely watched, with releases scheduled for Tuesday and Monday, respectively.
Japan’s PMI reading and China’s private survey PMI for services will be released on Wednesday. Singapore will release November retail sales on Thursday as well as South Korea’s unemployment rate for December.
– Jihye Li
Yamaguchi emerging as candidate for next Bank of Japan governor: Sankei
Japan’s former deputy governor Hirohide Yamaguchi is emerging as a candidate to lead the central bank, Japanese local media Sankei reported, citing people familiar with the matter.
Yamaguchi, who held a deputy position at the central bank until 2013, has been an outspoken critic of current governor Haruhiko Kuroda’s ultra-loose monetary policy.
The newspaper said Yamaguchi would signal a move away from former Japanese Prime Minister Shinzo Abe’s economic stimulus strategy, also known as “Abenomics”.
Sankei pointed out that Yamaguchi is gaining attention as current prime minister Fumio Kishida moves away from a stimulus-oriented monetary stance, and that the appointment of the next central bank chief will become clear next month.
– Jihye Li
UOB says foreign talent will be less inclined to come to Singapore after Hong Kong reopens
Alvin Lew, senior economist at United Overseas Bank, said that with the reopening of Hong Kong, foreign nationals may be less inclined to visit Singapore.
“Singapore has benefited in terms of the talent pool coming here due to the more stringent regulations in Hong Kong,” Lew said, adding that the influx of workers to Singapore “may see some easing” now that the city has reopened. Is.
“The talent pool itself may be less inclined to come here,” said the Singapore-based economist.
Lew also said that the reopening of Hong Kong is a step in the right direction for the territory to “return to business as usual”.
Analyst Says China’s Markets Will See “Strategic” Reforms Next Year
Port Shelter Investment Management said Chinese markets will see a “strategic surge” of recovery in the year ahead.
“It’s clear to say that we’re likely to see a strategic boom,” Richard Harris, the firm’s chief executive, told CNBC.
“It will be strategic, because at the end of the day China has to fit in with the rest of the world,” he said.
Harris expects China’s recovery to pick up in the first quarter of the year, and sentiment to continue into the second quarter.
He added that this recovery also depends on many unknown elements at present, such as whether the Chinese economy will be heavily stimulated, and what will be done about inflation when the economy picks up.
-Lee Ying Shan
New China tech ETF could bring ‘retail liquidity’ to Singapore market: Investment firm
Ding Chen, CEO of CSOP Asset Management, told CNBC’s “Squawk Box Asia” that the Singapore-listed CSI Star and Chinext 50 index exchange-traded funds could bring liquidity from mainland China to Singapore.
The firm’s ETF was listed on the Singapore Exchange on Friday and is a sub-fund of the Singapore Unit Trust CSOP SG ETF Series I, according to the fund’s page.
“Through SGX, Singapore investors and global investors can also gain access to China-listed ETFs,” said Ding, adding that investors from China can also invest directly in Singapore ETFs.
Asked about the evolution of the firm’s ETF portfolio, Ding said it would bring “a more up-and-coming, younger generation of tech companies” to the market.
South Korea’s inflation remained unchanged in December
South Korea’s December consumer price index rose 5% on an annual basis, data from the Bank of Korea showed.
The readings maintained cooler levels for the month and remained unchanged from November.
The print is in line with the expectations of economists polled by Reuters.
– Jihye Li
Shares closed with gains on Thursday
All the major averages closed higher on Thursday.
The Dow Jones Industrial Average rose 345.09 points, or 1.05%. The S&P 500 climbed 1.75% and the Nasdaq Composite climbed 2.59% to close at 10,478.09.
– Tanya Machil
CNBC Pro: Chip stocks performed poorly this year — but this fund manager is still bullish, naming 2 to buy
The number of unemployed increased last week; Claims released at highest level since February
Unemployment claims rose last week amid the Federal Reserve’s efforts to cool the economy and especially the labor market.
The Labor Department reported Thursday that a total of 225,000 filings for first-time unemployment benefits totaled 225,000 for the week ending Dec. 24. This was an increase of 9,000 from the previous week and slightly above the Dow Jones estimate of 223,000.
Long-term, continuing claims, which trail the headline number by one week, reached 1.71 million, an increase of 41,000 from the beginning of February.
The numbers are always noisy this time of year because of the holidays. Claims not adjusted for seasonal factors increased by 23,146, an increase of 9.3%.
CNBC Pro: Citi names its top biotech stocks for 2023 — and one with 73% upside
The biotech is set to remain a “stock-pickers market” into 2023, according to Citi.
The bank outlines how the biotech could perform based on a variety of economic scenarios, and names three top picks for 2023.
CNBC Pro subscribers can read more here.
– Weizen Tan