Fed minutes, Bank of Korea decision, Sri Lanka

Malaysian stocks rose after the government announced the prime minister

Malaysia’s listed stocks rose after the country’s palace announced Anwar Ibrahim as prime minister.

The benchmark KLCI index traded 3.86% higher after the previous negative session, trading at its highest level in more than two months.

Telecommunications group Axiata Group Bhd rose 12.4%, and Maxis Bhd rose 11.2%. Genting Malaysia rose 7.8% and rubber glove maker Top Glove also gained 7.8% in the afternoon session.

The Malaysian ringgit strengthened slightly against the US dollar and last stood at 4.5080.

Bill Ackman says the Hong Kong dollar will be cut

Billionaire hedge fund manager Bill Ackman questioned the longevity of the Hong Kong dollars‘s peg to the greenback, and added that his company Pershing Square have a significant short position in the currency.

“We have a large notional short position against the Hong Kong dollar through our put option,” Pershing Square Holdings CEO said in a series of tweets.

“The bow for Hong Kong is no longer meaningful and it is only a matter of time before it is broken,” Ackman wrote.

However, Bank of Singapore currency strategist Sim Moh Siong said stocks would remain firm as negative sentiment on China had “tempered” recently with corrections recently, including China’s quarantine period for international travelers.

“It is likely that the virus will hold because the fundamentals have continued to support the Fed,” he said. “I think things are right [have] It has been somewhat calm on the Chinese side and this may also help the Hong Kong dollar last longer,” he said.

– Jihye Lee

Grab, Gojek respond to Singapore’s move to extend job protection to gig workers

Grab said it strongly supports Singapore’s latest announcement to extend job security and benefits to gig workers from 2024.

The decision includes guaranteeing compensation and pension payments as part of new standards for the gig economy, which mainly affects delivery companies and ride-hailing companies.

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In response to CNBC’s request for comment, Grab said it “openly supports” the measures, adding that implementation needs to be “gradual”, citing the current headwinds for the economy. global, such as recession issues.

“We will be guided by these considerations to ensure minimal impact on our partners’ revenue and customer costs,” Grab said.

The company has called for the measure to be applied to all gig platforms citing unfairness.

Gojek said the company’s requirement to match the Central Provident Fund’s pension rate with that of the employer “means less income for domestic workers”. , and the company already has a similar policy.

“These proposals will build on existing protections for our partners, offered through the driver benefits program,” Gojek told CNBC.

– JP Ong, Sheila Chiang

New Zealand’s central bank was talking about a hike of 100 basis points, the governor said

We are very opposite to the currency position, says the RBNZ

The Reserve Bank of New Zealand has considered a bigger rate hike in its latest official rate decision – although its move to raise rates by 75 basis points has already the loudest ever.

“I would say we’ve had more discussions about 75 versus 100 than around 50 versus 75,” RBNZ Governor Adrian Orr said on CNBC’s “Squawk Box Asia.”

“Now we can say that there is no point in our financial position,” said Orr, “We need it, given the diversity of the economy today,” he said.

– Jihye Lee

Foxconn said the new hires have raised concerns about wages, adding to the already strained relationship

a major Apple supplier Foxconn said the new workers at the iPhone factory in Zhengzhou had “begged the company” for compensation, according to a statement on its website.

The announcement came after media reported that a mass protest by hundreds of workers was apparently triggered by delays in bonus payments, with videos circulating on social media showing people smashing surveillance cameras and windows.

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“The company insists that compensation has been fully met with contractual obligations and will continue to communicate with relevant partners,” Foxconn said in a statement, adding that the report about the Covid-positive employee living in the company’s apartment is “untrue.”

“Regarding all violence, the company will continue to communicate with the workers and the government to prevent incidents like this.”

The value of shares of Hon Hai Technology Group, Foxconn Limited changed to +0.5% during the week.

– Jihye Lee

The Bank of Korea raises rates by 25 basis points, meeting expectations

The Bank of Korea raised interest rates by 25 basis points to 3.25%, a smaller increase than previous moves and in line with expectations.

A Reuters poll of economists expected the move amid signs of slowing domestic growth.

The inflation rate for October was 5.7%, according to the latest figures released earlier this month – well above the central bank’s target of 2%.

BOK Governor Rhee Chang-yong is scheduled to hold a press conference later in the day regarding the monetary policy decision.

– Jihye Lee

CNBC Pro: Asset Manager Says Investors Must Buy This Big Stock Now

There is one big stock that investors need to buy right now, according to Rob Luna, chief investment strategist at asset manager Surevest.

Their CEO calls it “looks important”.

While Luna has chosen one large-cap fund, he advises investors to generally invest in smaller names, naming two stocks that he calls “the best of their kind.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

Stocks rose for a second day as Wall Street cheered the Fed’s announcement of smaller hikes ahead

Stocks rose on Wednesday and marked a second straight day of gains as investors cheered minutes from the Federal Reserve that signaled an early interest rate hike.

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The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06. The S&P 500 gained 0.59% to close at 4,027.26 and the Nasdaq Composite added 0.99% to 11,285.32.

Shares of Nordstrom fell 4.24% after the department store chain raised its forecast. However, Nordstrom beat profit and sales expectations for its final product, according to Refinitiv consensus expectations. Tesla rose 7.82% after Citi upgraded the stock to sell neutral. Deere changed to +5.03% during the week.

—Carmen Reinicke

CNBC Pro: Betting on the British market, short sellers expect a 50% fall in prices.

There will be more pain for investors in British retail companies if the predictions of short sellers come true.

The hedge fund currently holds bets worth £32.6 million and expects the retailer’s shares to fall 44%.

The head of investment in the fund also believes that the supermarket will raise new capital by diluting shareholders every year to keep itself in a difficult environment.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Fed minutes show smaller hike ahead, gains

Stocks rose on Wednesday afternoon following the release of minutes from the Federal Reserve’s November meeting. The report showed that the central bank is seeing progress in its fight against inflation and hopes to slow future interest rate increases.

“Most of the participants thought that the rate of increase may not be long,” the minutes said. “The delay and extent of uncertainty related to the impact of monetary policy actions on economic activity and inflation are among the reasons cited for the importance of such an assessment.”

This means that the Fed is likely to offer smaller rate hikes in December and early 2023.

The news cheered the market. The Dow Jones Industrial Average rose 130 points, or 0.38%. The S&P 500 gained 0.70% and the Nasdaq Composite gained 1.10%.

—Carmen Reinicke

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