Asia-Pacific stocks rise as Tokyo inflation nears 42-year high

Adani shares plunge further for second straight day of losses

Shares of Adani Group companies continued to post steep losses for a second consecutive trading session in India after short-selling firm Hindenburg announced its short position in the conglomerate companies earlier this week.

Adani refuted the allegations in two separate statements, adding that the group is «evaluating relevant provisions of US and Indian laws for remedial and punitive action against Hidenburg Research,» Adani Group Chief Legal Officer Jatin Jalundhwala said in a statement. .

Shares of Mumbai-listed Adani Enterprises fell more than 5% in India’s trading session on Friday. Adani Transmission fell 16.8%, Adani green energy lost 14.9% and Adani Power lost 8.4%. Adani Port’s share price also fell 8.4%.

Hindenberg doubled down on his original position, pointing out that Adani did not answer any of the questions raised in their claims.

«We fully respect our report and believe any legal action against us would be without merit,» he said.

—Jihye Lee

Inflation in Tokyo remains above the Bank of Japan’s target

Consumer prices in Tokyo, the capital of Japan, rose 4.3% in January, a figure above the expectations of economists polled by Reuters.

The reading also held levels above the Bank of Japan’s 2% inflation target for an eighth straight month after rising 2.1% in June 2022.

The Japanese yen strengthened 0.3% after the data was released and last traded at 129.82 against the US dollar.

CNBC Pro: These 6 global ETFs are the only ones to post gains every year for the past five years

According to a new analysis from CNBC Pro, only six global equity ETFs have consistently posted annual gains over the past five years.

They are the only funds among 7,000 equity ETFs traded globally to:

  • Not have a single year of negative returns between January 1, 2018 and December 31, 2022;
  • And be in positive territory this year so far.

CNBC Pro subscribers can find out which ETFs they belong to here.

—Ganesh Rao

Singapore house prices rose less in the last quarter of 2022

Private residential property prices in Singapore increased by 0.4% in the last quarter of 2022, according to a statement from the Urban Redevelopment Authority.

The reading showed house prices rose less than the 3.8% increase in the prior period and the slowest growth since the second quarter of 2020.

Home prices rose 8.6% for the full year of 2022, the statement said, also less than the 10.6% increase seen for the full year of 2021.

—Jihye Lee

Australia’s producer price index rises 5.8% from last year

Australia’s producer price index rose 5.8% for the last quarter of 2022 on an annualized basis, according to data from the Australian Bureau of Statistics.

The reading was slightly lower than the previous quarter of 6.4%, a signal that inflation may be easing in the country.

On a quarterly basis, the index rose 0.7%, also slower than the prior period reading of 1.9%.

The Australian dollar strengthened slightly during the morning session in Asia and last traded at 0.7123 against the US Dollar.

—Jihye Lee

GDP and other Q4 data show economic challenges ‘beginning to dissipate’, economist says

Thursday’s GDP data adds to a broader picture of economic growth in the fourth quarter, according to Curt Long, chief economist at the National Association of Federally-Insured Credit Unions. And that signals to him that the economic outlook is improving.

“The economic growth picture in the fourth quarter is positive. Much of that growth was concentrated in inventory building, which is not expected to grow at a similar pace in 2023,” Long said. «Nevertheless, with resilient consumer spending, low unemployment claims and receding inflation, some of the clouds that formed over the economy several months ago are starting to lift.»

—Alex Harring

CNBC Pro: Buy the dip? Morningstar’s Top Strategist Names 3 Stocks Trading at a Deep Discount

U.S. stocks are undervalued by about 15%, according to Dave Sekera, chief U.S. market strategist for Morningstar, who says the extent of this undervalued territory is rare.

Since late 2010, the market has traded at or below the current discount only 5% of the time, he said.

He picks three stocks that he thinks are trading at deep discounts.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

Tesla’s strong orders and low margins pit Wall Street analysts against each other

Wall Street analysts are split on Tesla after the electric car company’s latest quarterly results.

Tesla reported a beating in both profit and revenue for the fourth quarter, and eased investor fears of weaker growth for the company after recently issuing a series of price cuts. While the move triggered a drop in used Tesla prices, it also buoyed demand for the vehicles.

«So far in January, we’ve seen the largest orders in our history. We’re now seeing orders nearly double the rate of production,» Musk said on a call with analysts. .

For Mark Delaney of Goldman Sachs, this was «the most important conclusion of the call».

“Importantly, Tesla noted that since lowering prices, it has had the largest year-to-date orders in its history, with orders approximately 2x production. . Although we believe this order rate may not be sustained in light of the weak macroeconomic environment. , this would suggest the company is well on our 1.8 million delivery estimate,” Delaney wrote.

Other analysts were more negative on the stock outlook, however, saying Tesla’s auto gross margins, which were the lowest in five quarters, pointed to trouble.

AllianceBernstein’s Toni Sacconaghi reiterated an underperforming note on Tesla, saying the automaker’s latest results and earnings calls had ‘something for the bulls and the bears’, adding that he remained ‘torn’ on the ‘business. While strong orders are promising, the analyst said automotive gross margins were too low to ignore.

«Despite the significant increase in our Energy Storage guidance, our EPS for the year declines from $3.80 to $3.54 amid weaker margins. China, where we believe further declines awards will likely be needed before the end of the year,» Sacconaghi wrote.

CNBC Pro subscribers can read the full story here.

—Sarah Min

CNBC Pro: Morgan Stanley has ‘simple’ tech playbook, names TSMC and others as stocks to buy right now

A recession could be coming and the semiconductor sector – widely seen as cyclical and volatile – could be an unlikely haven for investors.

Morgan Stanley says chip stocks have historically done well in past recessions. The bank named its top Asian chip stocks, giving it a 40% upside.

Pro subscribers can learn more here.

— Zavier Ong

US GDP rose slightly more than expected in the fourth quarter

The US economy grew at an annualized pace of 2.9% in the fourth quarter, slightly beating the Dow Jones estimate of 2.8%. The Commerce Department report comes even as inflation persists and the Federal Reserve continues to raise rates.

Consumer spending rose 2.1% for the period, down slightly from 2.3% in the prior period, but still positive.

—Jeff Cox

Bitcoin is heading for the best month since 2020

Bitcoin remains in rally mode despite the pullback over the past two days and the cryptocurrency is poised for its best month since 2020. Some investors view crypto prices as a leading indicator of investors’ risk appetite. investors.

So far this month and this year, bitcoin is up almost 40% and is on course to post its best monthly performance since December 2020, when it gained 49.47% for the month.

Meanwhile, the S&P 500 is up about 5% this month.

—Tanaya Machel

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