Asia-Pacific markets were mixed after a positive rally from Wall Street, BHP shares soar

Despite the rate cuts, China’s economy saw more growth policies as needed

China needs more growth policies to stabilize its economy after the central bank unexpectedly moved to cut its key interest rate, Chinese central-bank-backed Financial News said on Tuesday.

The People’s Bank of China on Monday cut its 1-year policy lending rate by 10 basis points to 2.75% and the 7-day reverse repo rate to 2% from 2.1%. This dashed economists’ expectations that the central bank would act on rate cuts.

Quoting China Minsheng Bank chief economist Wen Bin, Financial News said that for the economy to recover further, the growth rate of infrastructure investment needs to accelerate, especially as the pace of recovery has slowed.

Weakness in domestic demand is a problem for the economy and Beijing needs to introduce policies to boost economic growth, Wen said.

Wang Qing, chief macro analyst at Dongfang Jincheng, was also quoted as saying that Beijing will boost economic policies and industrial policies.

Luo Huanji, a senior macro researcher at the Zixin Investment Research Institute, said that in light of possible future epidemic outbreaks, Beijing should prioritize the adjustment of macro policies in an effort to further improve the economy.

-Su-Lin Tan

China’s interest rate cuts are a modest first step, say professors

The surprise of the People’s Bank of China According to Ishwar Prasad, senior professor of international trade policy at Cornell University, the interest rate cut on borrowing costs for medium-term policy loans is a modest first step.

“The rate cut we’ve seen right now is very modest. Ten basis-points is not a lot, although it does free up some liquidity,” he told CNBC’s “Squawk Box Asia” on Tuesday.

The PBOC cut its one-year medium-term lending facility by 10 basis points to 2.75% on 400 billion yuan ($59.3 billion) of loans to certain financial institutions, according to an announcement posted on the central bank’s website. Also, the seven-day reverse repo rate has been cut by 10 basis points to 2%.

“It seems like a very small step. But the PBOC is trying to send a very calibrated signal that it is ready to step in if the situation calls for it,” the professor added.

“I think it’s very cautious about releasing any significant fiscal stimulus because they know that’s going to create medium-term fiscal risks.”

– Sumati Bala

Australia will see competition for social media services, consumer issues

The Australian Competition and Consumer Commission has said it will look into competition and consumer issues with social media services FacebookInstagram, TwitterTikTok and Snapchat.

The ACCC said its report will also look at YouTube, Reddit and Discord.

“We hope to examine trends in user preferences and engagement over time and reflect on how users choose social media services,” it said. statement. The body plans to look at “whether new entrants like TikTok have changed the competitive landscape”.

on Friday, China released a list of algorithms Building on the success of its tech giants, including Alibaba and Tencent. The filing also mentions how Douyin, the Chinese version of TikTok, uses such data to recommend content to users.

Jihye Lee

Gas prices are rising northward as Japanese industry lags

Bill Perkins, chief trader and chief executive of Skyler Capital Management, told “Street Science Asia” that energy prices will continue to move north amid strong consumption.

Due to rising gas prices, Northern Hemisphere countries, Asian countries like Japan have scrambled to import liquefied natural gas. Asian benchmark spot prices edged higher on Tuesday while Japanese industrial stocks remained in the red on Tuesday.

“I think the slowdown in China and the real estate situation there has been a pullback as traders have taken profits. Those are concerns but they are overblown relative to the macro trends that have been going on in this cycle,” he said.

Perkins said there will be some moderation in rising oil prices and he expects WPI oil to move north of $100 a barrel and Brent to move past $120 a barrel.

-Su-Lin Tan

After Anglo-Australian miner BHP posted its second-biggest profit in history

Anglo-Australian miner BHP Shares rose 3.80% after posting the second-biggest profit in history and a record dividend of $16.3 billion.

Results for the full year ended June 30 beat expectations.

BHP chief executive Mike Henry said BHP was “entering into strategic, operational and financial major size” in the 2023 financial year.

He also expects China to “emerge as a source of stability for commodity demand over the next year, progressively holding policy support”.

“At the same time, we expect a slowdown in advanced economies as monetary policy tightens, as well as ongoing geopolitical uncertainty and inflationary pressures,” he said in a press release.

“The direct and indirect impact of Europe’s energy crisis is a particular point of concern. Tight labor markets will continue to be a challenge for global and local supply chains.”

The situation is reversed for peers Rio Tinto And Fortescue metal who has posted the falls.

-Su-Lin Tan

The US, Japan and South Korea completed missile detection and tracking exercises

The United States Navy, the Japan Maritime Self-Defense Force and the Republic of Korea (ROK) Navy have completed missile warning and ballistic missile detection and tracking exercises off the coast of the Pacific Missile Range Facility (PMRF) in Hawaii, the Pentagon said.

US, Japanese, and ROK participants shared strategic data link information in accordance with the Tripartite Information Sharing Agreement.

Following the June 11 US-ROK-Japan trilateral ministerial meeting in Singapore, this missile warning and ballistic missile detection and tracking exercise demonstrated the commitment of the US, ROK, and Japan to advance trilateral cooperation in responding to DPRK challenges, safeguarding shared security. and prosperity, and promote a rules-based international order,” the Pentagon said in a note.

-Su-Lin Tan

Chinese fast food operator Yum HK goes for preliminary listing

Chinese fast food operator Yum China Holdings announced on Monday that it has applied to convert its secondary listing in Hong Kong to primary listing status. It currently has a dual listing on the New York Stock Exchange.

“Since our secondary listing in Hong Kong in 2020, we have increased access to our shareholders in Asia. We have diversified our investor base and tapped into additional capital pools,” said CEO Joy Watt. Yum China, In a press release.

“Dual primary listing will bring us closer to our employees, customers and other stakeholders. This strategic move will broaden our shareholder universe, increase liquidity and reduce the risk of delisting from the NYSE,” he added.

Has exclusive rights to operate fast food brands like Yum kfc, Pizza Hut and the Taco Bell brand in China.

-Su-Lin Tan

CNBC Pro: Strategists name global stocks to buy despite slow growth

Patrick Armstrong, chief investment officer at Plurimi Group, said the three sectors had “essential value” even during the economic downturn.

These sectors are “incredibly cheap,” he told CNBC’s “Squawk Box Europe,” naming his favorite stocks and explaining why he likes them.

Pro members can read the story here.

– Weizen Tan

CNBC Pro: Tesla’s valuation doesn’t make sense until it gets to this level, fund manager says

Tesla It may be one of the most famous electric vehicle makers, but fund manager and technology investor Paul Meeks thinks the stock is still too expensive.

Meeks revealed to CNBC Pro talk An assessment that he finds Tesla “more interesting”.

Pro members can Read the story here.

Xavier Ong

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