Stocks higher ahead of RBA decision; Caixin PMI below 50

Oil prices rise 1% on weaker dollar

Crude oil futures rose in the Asian afternoon on a weaker dollar.

Brent oil futures rose 1.23% to $93.95 a barrel, while US crude futures rose by 1.12% to $87.50 per barrel.

The dollar index, which measures the greenback against a basket of six currencies, last traded at 111.22.

A weaker US dollar makes energy more affordable for buyers from other countries with different currencies.

– Abigail Ng, Reuters

Toyota earnings miss estimates, stock plummets

Japanese stocks Toyota: fell sharply after reporting a 25% drop in its second-quarter operating profit.

The company reported operating profit of 562.7 billion yen ($3.79 billion) in the quarter ended Sept. 30, well below the average estimate of 772.2 billion yen ($5.2 billion) in a Refinitiv survey. and a drop of almost 25 percent over the same period. last year.

Toyota shares fell more than 2% shortly after the earnings report as broader Nicene 225 The index lost some of its earlier gains in the afternoon session.

– Jihye Lee

Australia’s central bank raised interest rates by 25 basis points, as expected

The Reserve Bank of Australia raised interest rates by 25 basis points to 2.85%, in line with the average forecast of analysts polled by Reuters.

This is the seventh consecutive tightening move by the RBA to control inflation in the country.

It Australian dollar It rose to around $0.6440 before the decision and last traded at $0.6429 after the announcement.

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At its previous meeting in October, the central bank raised interest rates by 25 basis points, less than the expected half-point increase.

– Abigail Ng

Those moving from Hong Kong. Hang Seng Tech shares lead the broader index

Hong Kong-listed tech stocks led gains in the broader Hang Seng index Meituan gaining more than 10% in the morning session.

Tencent: increased by 8.56% Alibaba: increased by 7.2% and Xiaomi: increased by 4.3%. JD.com also increased by 6.06%.

The move came after Caixin PMI data on China’s factory activity came in slightly better than expected, according to CMC Markets market analyst Tina Teng.

– Jihye Lee

Hang Seng loses more than 14% in October

Asia-Pacific market performance in October

market Monthly performance Annual performance
Australia’s S&P ASX 200 6.01% -7.81%
Japanese Nikkei 225 4.5% -5.86%
South Korean Kospi 6.23% -23.1%
China Shanghai Composite -4.33% -20.5%
Hong Kong’s Hang Seng -14.55% -37.1%

Markets in mainland China and Hong Kong were lower in the Asia-Pacific region in October.

It Hang Seng the index hit its lowest level since April 2009 after losing 14.55% at Monday’s close.

Meanwhile, shares in Australia, Japan and South Korea posted single-digit gains to close the first month of the year’s final quarter, while the Shanghai Composite fell 4.33%.

Japanese shares closed at their highest level since September 20, but APAC’s main indexes were still under water since the start of the year.

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– Abigail Ng

CNBC Pro. What investors should buy in this “short-lived” rally, according to one analyst

The analyst explains why he's still bearish on tech right now

After October’s stock market rally, investors are debating whether stocks have bottomed or if it’s just another short-lived bounce.

Michael Landsberg, chief investment officer of Landsberg Bennett Private Wealth Management, is in the latter camp, arguing that the rally looks temporary once again.

He told CNBC what he thinks investors should buy, and briefly.

CNBC Pro subscribers can read more here.

— Weizhen Tan

China’s factory activity shrank for a third straight month in October, a private survey said

Caixin’s manufacturing purchasing managers’ index showed in October that factory activity contracted for the third straight month.

The index came in at 49.2, compared to expectations for a print of 49. In September, the manufacturing PMI was at 48.1, below the low 50 point that separates growth from contraction.

PMI readings compare activity from month to month.

Official data from the Office for National Statistics came in at 49.2 on Monday, missing expectations for a 50-point reading.

– Abigail Ng

Hong Kong’s economy shrank 4.5% in the third quarter

Hong Kong’s gross domestic product fell 4.5% in the third quarter from a year earlier, preliminary estimates from the Census and Statistics Department showed on Monday.

That’s the worst decline since the second quarter of 2020. Analysts polled by Reuters had expected a 0.7% increase, while GDP fell 1.3% in the second quarter.

“The deteriorating external environment and continued disruptions in cross-border land freight transport have severely hit Hong Kong’s exports,” it said in a statement, adding that the decline in GDP was “mainly due to weak external demand figures in the quarter”.

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Fixed capital formation, or investment, fell by 14.3%, while exports and imports also fell.

– Abigail Ng

CNBC Pro. Shares of this Chinese electric car could rise more than 260%, says Citi.

Citi has picked the electric car major as one of its “best” buy ideas for Chinese stocks.

It expects the automaker’s stock to rise more than 260% over the next 12 months as EV sales soar.

CNBC Pro subscribers can read more here.

— Ganesh Rao

South Korea’s trade deficit widens in October

South Korea’s trade deficit widened to $6.7 billion in October from a revised $3.78 billion in September, data from the customs agency showed.

Compared to the same period last year, import increased by 9.9% and amounted to 59.18 billion dollars, while export decreased by 5.7% and amounted to 52.48 billion dollars.

The latest data shows the biggest drop in exports since August 2020, according to FactSet.

– Jihye Lee

CNBC Pro. Did you forget Tesla? Citi and HSBC name 2 alternatives to play EV boom

Tesla may be the electric car industry favorite of investors, but Citi and HSBC point to two alternatives to cope with growing demand for electric cars.

Pro subscribers can read more here.

— Zavier Ong

Japan spent $42.7 billion to shore up the yen, the ministry said in a statement

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