41 Mins Ago
Yen weakens after Bank of Japan holds rates, increases flexibility on yield curve control
Japan’s yen weakened after the country’s central bank kept interest rates steady and said it will allow more flexibility in its yield curve control policy.
The news sent the yen down nearly 0.6% against the dollar, briefly breaching the 150 per dollar threshold.
The benchmark Nikkei 225 reversed earlier falls to rise 0.7%, while the Topix added 1.14%.
The BOJ also raised its inflation forecast for the next fiscal year, it now sees the core consumer price index rising 2.8%, above the 1.9% it predicted three months ago.
— Shreyashi Sanyal
4 Hours Ago
Japan retail sales growth rate falls after four straight months of acceleration
Japan’s retail sales climbed 5.8% in September from a year ago, a slower expansion compared with the 7% growth seen in August.
This is the first month that the growth rate softened after four straight months of accelerating growth, and was slightly lower than the 5.9% expected by economists polled by Reuters.
Total commercial sales came up to 50.35 trillion yen ($337.17 billion) in September, its highest level since March.
— Lim Hui Jie
An Hour Ago
Lower growth is new normal for China, HSBC says
China’s new normal is going to be lower growth than before, said Fred Neumann, HSBC’s chief Asia economist & co-head of global research.
“We probably need to adjust our expectations in terms of what the upper ceiling is for China’s growth,” Neumann told CNBC’s “Squawk Box Asia.“
HSBC now sees China’s economy growing 4.9% this year and 4.6% in 2024. Neumann said that will likely be the range of growth for China for the next couple of years and “that’s probably as good as it gets as long as the property market continues to struggle.”
Neumann said even though projections for China’s growth are more modest than they were before the pandemic, there are still some signs of economic recovery underway and growing areas of investments including the electric vehicle space.
Beijing’s current growth target is at 5% for 2023. Data earlier in the day showed China’s manufacturing activity logged an unexpected contraction in October.
— Shreyashi Sanyal
3 Hours Ago
CNBC Pro: Is Meta a buy after the brutal tech sell-off? Here’s what the pros are saying
Meta’s stock fell 3.86% last week, although was trading over 2% higher Monday.
“I believe this tech sell off here, [when] we look back three, six months, I view this as more of a golden opportunity, not the time [for it] to head into hibernation mode,” Dan Ives from Wedbush Securities told CNBC’s “” on Thursday, in the midst of the market downturn.
Other analysts also weighed in on the outlook for the stock.
— Amala Balakrishner
6 Hours Ago
Apollo Global and KKR still on track to enter S&P 500, eventually, Barclays says
Apollo Global Management and KKR & Co. are both still on track to eventually join the S&P 500 Index, according to a Barclays report to clients out Monday, although the immediate outlook may be diminished by the effect of higher interest rates on both companies’ GAAP-reported earnings.
After Blackstone was admitted to the S&P 500 in September, “the index inclusion narrative has become increasingly front and center” for alternative asset managers, analyst Benjamin Budish said in the note. The problem for Apollo and KKR, however, is that S&P demands earnings measured by Generally Accepted Accounting Principles in the most recent quarter, “and in aggregate over the four preceding quarters.”
But with interest rates having climbed in the third quarter, “this could result in unrealized losses on APO’s/KKR’s fixed income investments (largely related to their insurance businesses),” Barclays argued, noting that GAAP earnings for both had been negative in prior quarters that saw 10-year Treasury yields rise by similar magnitudes.
— Scott Schnipper, Michael Bloom
7 Hours Ago
Stocks making the biggest moves in extended trading
Check out the companies making headlines after hours.
Arista Networks — The cloud networking solutions company added 6% Monday after the bell. Arista Networks reported $1.83 in earnings per share, excluding items, on $1.51 billion in revenue. Analysts polled by FactSet had estimated $1.58 in earnings per share on $1.48 billion in revenue.
Lattice Semiconductor — The maker of low-power programmable chips dropped about 16% in late trading. Lattice’s fourth-quarter revenue forecast of $166 million to $186 million fell short of analysts’ consensus estimate of $195.7 million, according to FactSet’s StreetAccount.
Wolfspeed — Shares of the chipmaker jumped more than 11% following its fiscal first-quarter results. The company posted a loss of 53 cents per share, while analysts called for 67 cents per share, per LSEG, formerly known as Refinitiv. Revenue fell short of estimates, coming in at $197 million, while analysts forecast $208 million.
The full list can be found here.
— Hakyung Kim
7 Hours Ago
Stock futures open flat Monday
U.S. stock futures were little changed Monday night.
The Dow Jones Industrial Average added just 2 points, or 0.01%. Futures tied to the S&P 500 inched down 0.02%. Nasdaq 100 futures were unchanged.
— Hakyung Kim