Asia-Pacific markets mostly rise as investors digest Fed’s smaller quarter-point hike

Hong Kong signs ‘sequential acceleration’ despite economic slowdown in 2022: UBP

Hong Kong’s economy is “returning to expansion” this year, UBP told CNBC’s “Squawk Box Asia” on Thursday.

“We see signs that there was a sequential acceleration in January. So that’s good news,” said Carlos Casanova, UBP’s senior economist for Asia.

That’s despite new figures from the Hong Kong government showing its economy shrank 4.2% in the fourth quarter, falling for the fourth straight quarter in 2022. It’s down 3.5% year-on-year. as well as real GDP.

“We are confident that we should be able to return to expansion in 2023, not only because of tourists from the mainland. [are] coming back after the reopening, but … we have more supportive valuations that really help with the sentiment in Hong Kong,” said Casanova.

—Goh Chiew Tong

Bitcoin up about 4%, close to $24,000

Bitcoin The price of Coin Metrics has risen by 3.72% in the past 24 hours, as the US Federal Reserve’s 25 interest rate hike continues to encourage.

The cryptocurrency briefly touched $24,000 and last traded at $23,986.65, hovering at its highest level since mid-August 2022.

Ether changed to +5.77% during the week.

The US dollar index is volatile, down around 100

the dollar index fell more than 0.3% to 100.92, to the lowest level seen since April 2022, when it fell below the 101 mark, Refinitiv data showed.

The Dollar Index hit an overnight low of 101,036, its lowest level since 4/22/2022 when it traded below 100,473.

The index is down 0.74% for the week and is on course for its fourth consecutive negative week since the end of the 4 weeks ending January 14, 2022.

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– Chris Hayes, Gina Francolla, Jihye Lee

Australian building approvals up 18.5%, beating expectations

Australia’s total housing approvals rose 18.5%, according to the Australian Bureau of Statistics, well above the 1% rise expected by economists in a Reuters poll.

Private sector approvals fell 2.3%, while approvals for non-residential buildings rose 56.6%, the ABS said in a release.

The value of non-residential properties fell by 1.7%, while the total number of homes increased by 3%.

– Jihye Lee

Consumer prices in South Korea rose 5.2% in January

Consumer prices in South Korea rose 5.2% in January year-on-year, according to data from Statistics Korea.

The latest edition shows an increase from the previous reading, when it fell from 5.7% in October 2022 to 5.0% in November and was unchanged in December.

The price of utilities rose 6.1% compared to a year ago, while fresh food rose 2.4%.

– Jihye Lee

Adani Enterprises withdraws its subsequent public offering overnight

Investors will be keeping a close eye on Adani Group shares after Adani Enterprises staged a $2.5 billion initial public offering overnight, despite the sale being fully booked, which many believed to be trust from investors.

The company cited “unprecedented conditions and current market volatility” for the decision, adding that it is working to return the proceeds to investors. .

“Given these extraordinary circumstances, the Company’s board of directors felt that it was morally wrong to proceed with the issue,” founder Gautam Adani said in a statement.

“The interests of investors are paramount and therefore to protect them from possible financial losses, the board has decided not to continue with the FPO,” he said.

The move came after Adani shares continued to trade lower during Wednesday’s trading session in Mumbai – reflecting investor sentiment since Hindenburg Research announced a short position in the an Adani Group company.

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Adani Enterprises share price down 28% at Wednesday’s market close. Adani Port and Special Economic Zone decreased by 19%, Adani Green Energy fell 5.6%, Adani Total Gas lost 10% while Adani Transmission changed to +2.8% during the week.

– Jihye Lee

CNBC Pro: JPMorgan says Hong Kong shares will bounce back in February and names 5 assets

JPMorgan named five stocks for assets despite the broader Chinese stock market’s gains in February.

Wall Street banking strategists pointed to last week’s sell-off in Hong Kong shares as profit-taking by some investors.

They said that the broader stock market will “move higher” this month but revolve around “lack of quality in consumption as well as cyclical value and growth.”

CNBC Pro subscribers can read more about JPMorgan’s top 5 stocks.

— Ganesh Rao

CNBC Pro: Worried About Alibaba’s Price Drop? Analysts have 4 other technology options

Shares in Alibaba have enjoyed strong returns this year, although the decline in share prices has worried some investors.

But the Wall Street favorite is far from the only game in town, with several stocks offering exposure to the Chinese Internet sector.

Pro customers can read more here.

— Zavier Ong

Federal Reserve hikes to 25 basis points, but expects ‘continued’ growth

The Federal Reserve raised its overnight lending rate by 25 basis points, or 0.25 percent, in line with investor expectations. The hike brings the Fed’s target rate to 4.5%-4.75%, the highest since 2007.

In its statement, however, the Fed retained language noting that the FOMC still sees the need for “continued increases in target.” Market participants expected a softening of the sentence, but the statement, which was agreed by all, kept it.

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— Jeff Cox

Don’t expect a rate cut in 2023, Powell said

Jerome Powell said he does not expect the Fed to cut rates this year, as some key policymakers project.

“From our perspective, I don’t see us cutting interest rates this year, if our view comes true,” the Fed president said.

Powell also said he was “unconcerned” about the bond market implying another cut before the break, as some market participants expect the rate to go down faster than the Fed.

“If we see faster inflation, that’s going to come into our policy space, of course,” Powell said.

— Jesse Pound

Economy still in ‘early stages’ of deflation, Powell says

Powell acknowledged that there were positive signs in the recent jobs report although employment data remained strong but said it was premature to celebrate.

“The lack of disinflation that we’ve seen so far in labor market prices is a good thing,” Powell said, but added that the economy is still in the “early stages” of deflation. life.

He said the drop in property prices and data showing a recent softening of the rental housing market is “good news.”

However, he said that the Fed does not yet “see disinflation” in the basic services of rising prices, apart from housing.

— Jesse Pound

Gold hits daily highs not seen since April

gold reached a session high not seen since April.

The metal traded up to $1,956.60 during Wednesday’s trading. This is the highest it has reached since April 22, 2022, when gold reached $1,957.80.

— Alex Harring, Gina Francolla


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