Hong Kong shares rise 3% as technology shares rise; China’s activity data is disappointing

Fertilizer is the key to restarting the grain business in the Black Sea, says the expert

A greater emphasis on fertilizers will help reduce the global cost of food and ensure the extension of the Black Sea agreement, said Michael Vatikiotis, senior consultant with the Center for Humanitarian Dialogue.

He explained that 70% of the fertilizer production plants in Europe are inactive due to the deficiency of ammonium nitrate, of which Russia produces a quarter of the world production.

“I think what Russia is looking for is a greater concern from the international community about the demand for fertilizers, so that it can somehow implement that agreement,” said Vatikiotis, who added that more emphasis is needed. on fertilizers to bring down the global cost of food.

– Lee Ying Shan

Japan’s Monetary Policy Will Not Change for the Next 9-12 Months: Monex Group

Japan's monetary policy 'absolutely does not' tighten any time soon: financial services firms

The Bank of Japan will remain a “bastion of stability” for nearly a year longer because the output gap in the economy remains, Monex Group’s Jesper Koll told CNBC after Japan released its gross domestic product estimates. third quarter.

He said the GDP figure, which fell short of expectations, confirms “how negatively sensitive the Japanese consumer is” in the current environment.

Over the next 12 months, the central bank will need to pay attention to whether the US economy ends in a soft landing or a hard landing, Koll said.

He added that he is looking at whether the Japanese government can come up with a structural industrial policy that encourages the business community to commit to its own investment expenses.

– Abigail Ng

There is tremendous value in some Chinese tech stocks, says Primavera Capital

Shares of large Chinese tech companies are currently “just plain depressed” and “cheap,” said Fred Hu, founder and president of Primavera Capital.

Hong Kong’s Hang Seng Tech Index has fallen more than 30% since the start of the year, although the index has rebounded in recent weeks.

The Chinese government’s relentless crackdowns and zero-Covid policy have dampened the confidence of tech entrepreneurs and investors, but there is “enormous deep value” in some tech stocks, Hu said.

“China is a nation that any other successful nation would need [for] technology and innovation … I think there is an advantage “to a lot of these titles, he added.

– Charmaine Jacob

Hong Kong-listed Chinese tech stocks jump early in the session

Hong Kong-listed shares of Chinese technology companies rose significantly in the first hour of trading.

Tencent increased by 7.6%, Meituan gained 5.9% e Alibaba increased by 9%. The Hang Seng Tech Index rose about 4%.

The moves come despite disappointing business and retail sales data from China and following the meeting of US President Joe Biden and Chinese President Xi Jinping ahead of the G-20 summit in Bali.

John Rutledge, chief strategist at private investment firm Safanad, said the discussion between the two leaders went “much better” than expected, although he mostly attributed this to low expectations.

The Biden-Jinping bout went much better than I expected, says Rutledge of Safanad

TSMC shares rise more than 9% on Berkshire Hathaway capital news

Actions of Taiwan semiconductor manufacturing company listed in Taiwan jumped later Berkshire Hathaway revealed a $ 4 billion stake in the company.

The stock rose as high as 9.44%, reaching its highest levels in nearly two months.

Berkshire added more than 60 million shares of the Taiwanese chip maker’s US depository receipts, worth $ 4.1 billion (1.2% of TSM) by the end of the third quarter, making Taiwan Semi the 10th largest holding in the conglomerate at the end of September.

The stock was up about 8%.

Chinese industrial production and retail sales do not meet expectations in October

Chinese industrial production grew 5% in October compared to a year ago, slowing from the 6.3% increase recorded in September. The latest figure lacks estimates of a 5.2% increase predicted in a Reuters poll.

Separately, retail sales in China fell 0.5% in October from a year ago, missing expectations.

Analysts interviewed by Reuters expected a 1% increase and retail sales rose 2.5% in September.

– Abigail Ng

CNBC Pro: Morningstar’s Top Strategist Says Stocks Are 15% Undervalued and Shares 6 Favorites

With many stocks in a bear market, the stocks could be undervalued by 15%, according to Morningstar.

The US equity research firm’s chief strategist believes the headwinds that were present at the start of the year will begin to ease early next year and will benefit equities.

Dave Sekera also shared his “fair value” assessment of six companies with a “broad economic moat” that will outperform in such an economic environment.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Australia’s central bank hints at larger interest rate hikes in sight

The Reserve Bank of Australia has hinted at further and perhaps greater interest rate hikes ahead of its efforts to tame inflationary pressures, according to the minutes released since the last meeting.

“The Council agreed on the importance of bringing inflation back to target and plans to raise interest rates further in the coming period,” the statement read.

The central bank had considered raising cash rates by 50 basis points, but saw a stronger reason to raise the rate by 25 basis points, he said.

Higher interest rates would be part of broader efforts to “establish a more sustainable balance between supply and demand in the Australian economy,” the RBA said, adding that members had not ruled out the possibility of reverting to larger rises if necessary.

– Jihye Lee

The Japanese economy unexpectedly contracts in the third quarter, according to the data

According to preliminary official estimates, the Japanese economy unexpectedly contracted in the third quarter compared to a year ago.

Gross domestic product fell by 1.2% in the July-September quarter compared to the same period last year, missing 1.1% growth estimates in a Reuters poll.

– Abigail Ng

CNBC Pro: China is easing its Covid measures. This is how the market professionals play

What stocks could benefit if China canceled its zero-Covid policy? Market professionals reveal how to play a reopening as China loosens some of its virus controls.

Pro subscribers can read more here.

—Zavier Ong

Stocks from session lows on Brainard comments

The S&P 500 rebounded from lows and Treasury yields fell from highs somewhat late in the morning after Federal Reserve Vice President Lael Brainard said it might “soon” be appropriate to slow the pace of interest rate hikes, in a conversation with Bloomberg News.

The S&P 500 was the last down 0.1% after being down more than 0.7% at one point on Monday. The 10-year Treasury yield was 5 basis points higher at 3.878% after trading up around 3.90% earlier.

“I think what’s really important to point out is that we have done a lot, but we have more work to do both to raise rates and to support moderation to bring inflation to 2% over time,” Brainard added.

—John Melloy, Jeff Cox

Fed’s Waller Message to Markets: Rate Endpoint Is “Still a Way Out”

Fed Governor Chirstopher Waller said that while the central bank may raise rates at a slower pace next month, this shouldn’t be interpreted as a sign of weakening in its fight to reduce inflation.

“Stop paying attention to the pace and start paying attention to where the endpoint will be. Until we lower inflation, that endpoint is still a way out,” Waller said on Sunday.

Earlier this month, the Fed raised rates by 75 basis points to the highest level since 2008.

– Fred Imbert

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