Stocks higher ahead of RBA decision; Caixin PMI is below 50

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 step by the RBA aimed at controlling inflation in the country.

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

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

– Abigail Ng

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

ten cents gained 8.56%, alibaba increased by 7.2% and Xiaomi increased by 4.3%. JD.com also increased by 6.06%.

The move followed slightly better-than-expected Caixin PMI data for China’s factory activity, according to CMC Markets market analyst Tina Teng.

– Jihye Lee

Mainland China and Hong Kong markets underperformed their Asia-Pacific peers in October.

The Hang Seng The index fell to 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 quarter of the year, while the Shanghai Composite gained 4.33%.

Japanese stocks closed at their highest since September. 20, but major APAC indices were still under water from the start of the year.

– Abigail Ng

After the October stock market rallyinvestors are debating whether stocks have bottomed out or another short-term spike.

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

He told CNBC he thinks investors should be buying — and short.

CNBC Pro subscribers can read more here.

– Weizhen Tan

The Caixin Manufacturing Purchasing Managers’ Index for October showed factory activity contracted for the third consecutive month.

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

PMI indicators 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 print of 50.

– Abigail Ng

Hong Kong’s gross domestic product fell 4.5% in the third quarter of the year compared to the same period last year. advance calculations The Census and Statistics Office showed Monday.

This is the worst contraction since the second quarter of 2020. Analysts polled by Reuters had expected a 0.7% rise in the second quarter, while GDP fell by 1.3%.

“The deteriorating external environment and continued disruptions in cross-border dry cargo flows have hit Hong Kong’s exports hard,” the statement said, adding that the drop in GDP was “mainly due to the weak performance of external demand during the quarter”.

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

– Abigail Ng

Citi has singled out a major electric car maker as one of its “best” buying ideas among Chinese stocks.

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

CNBC Pro subscribers can read more here.

– Ganesh Rao

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

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

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

– Jihye Lee

Tesla may be a favorite investor for exposure to the EV industry, but Citi and HSBC name two alternatives to meet growing demand for electric vehicles.

Pro subscribers can read more here.

– Xavier Ong