Asia Pacific markets are mixed; Beijing eases some covid measures

The Philippines Consumer Price Index for November rose 8.0% year-on-year, hitting a 14-year high on the back of higher food prices according to Philippine Statistics Authority.

The figure was the highest since November 2008 and was higher than a Reuters estimate of 7.8 percent. It was also higher than the 7.7% figure reported for October, mainly due to higher costs for food and non-alcoholic beverages.

Core inflation in the Philippines, which excludes the more volatile energy and food data, rose 6.5%.

JPMorgan global strategist Kerry Craig told CNBC that the inflation issue is sticky but “not unique” to the Philippines. He said the price hike was driven by supply-side pressures rather than increased demand.

He added, “Given the pace of inflation, it is likely that the interest rate will be raised again later this month.”

– Lee Ying Chan

The RBA said it expects to continue raising interest rates, but that it is “not on a predetermined path”. According to a statement by Governor Philip Lowe.

Lowe said the board monitors factors including the global economy and household spending in the country.

“The board recognizes that monetary policy is running late and that the full impact of the interest rate increase has yet to be seen in mortgage payments,” the statement said. “Household spending is expected to slow down over the coming period, although the timing and extent of this slowdown is uncertain.”

Raising interest rates could hit the economy in early 2023 when mortgages shift from fixed rates to floating rates, said Jason Teh, chief investment officer at Vertium Asset Management.

“A lot of borrowers will feel very tight about how much they can spend in the local economy,” he said in an interview with CNBC’s “Street Signs Asia.”

“Around the first quarter of next year, I think you will see some impact in the Australian economy,” he said.

– Abigail

A fund manager said a “fantastic week for a potential turning point” on the Nasdaq Composite could be on the horizon.

The tech-heavy Nasdaq is down 26.2% this year as the Federal Reserve has increased borrowing costs in an effort to control inflation.

Julian Howard, director of multi-asset investing at GAM, told CNBC what catalyst to look for and when might be the right time for tech investors to re-enter the market.

CNBC Pro subscribers can read more here.

– Ganesh Rao

The Reserve Bank of Australia raised interest rates by 25 basis points to 3.1% on Tuesday, in line with expectations of analysts in a Reuters poll.

This is the central bank’s third consecutive quarter-point increase and the eighth interest rate increase this year.

Inflation in Australia It cooled slightly in October to 6.9%but it is still well above the RBA’s target of 2% to 3%.

Charmaine Jacob

Morgan Stanley has turned bullish on Chinese stocks for the first time in nearly two years as the country embarks on a “clear path toward reopening.”

“We see a sharp pick-up from here on the heels of severe underperformance in the past two years,” the bank said, though it warned that the road to recovery “will be bumpy.”

Morgan Stanley highlighted a list of names it said would benefit from the facility in China, including two it gave a rally of nearly 130%.

CNBC Pro subscribers can read more here.

– Wizen tan

Beijing city announce Negative Covid tests will not be required to enter most public areas, shopping malls or residential areas, while bars and so-called KTV lounges or karaoke bars.

Separately, Reuters reported on Monday that China may announce further easing of Covid restrictions as early as Wednesday, Citing two sources with knowledge of the subject.

There will be 10 new measures in addition to the 20 introduced in November, the report said.

several cities in China Covid testing rules have relaxed in recent days.

– Evelyn Cheng, Abigail Ng

Apple supplier Foxconn, also known as Hon Hai Precision IndustryAnd the mentioned Its monthly revenue for the month of November decreased by more than 11% compared to the same period last year.

Revenue for the month totaled NT$551.1 billion ($18 billion), down more than 29% compared to October.

The Taiwanese company said the decline was due to “gradually entering production in the off-peak season and part of shipments being affected by the epidemic in Zhengzhou,” where the company operates the world’s largest iPhone assembly plant.

Shares of the company fell 1.48% in Sabah Asia.

Arjun Kharpal

Japan family spending It rose 1.2% for the month of October from a year ago, marking its fifth consecutive month of growth since seeing a 0.5% decline in May.

The October reading came in higher than expected, with analysts polled by Reuters expecting a gain of 1%.

“The recovery in spending should slow as these households take a hit from real incomes,” Marcel Thelliant, chief Japanese economist at Capital Economics, said on CNBC. Squawk Box AsiaThe nation’s real wages fell 2.6% annually in October more severe contraction in more than seven years.

“We think the Japanese economy will enter a recession sometime next year,” he said, adding that it is likely to be driven by lower exports, which could lead to increased investment caution.

Japan is due to release its revised GDP data on Thursday.

– Jihe Lee

These global stocks had a win in November, outperforming the MSCI World Index.

CNBC Pro FactSet examined stocks that not only did well last month, but could still see more upside ahead.

Professional subscribers can Read more here.

– Xavier Ong

Australia’s central bank is expected to raise its cash rate by 25 basis points to 3.1% on Tuesday, according to economists polled by Reuters.

This would be the RBA’s eighth hike this year, and the third consecutive 25 basis point hike since October.

The Reserve Bank of Australia said in a statement after its meeting in November.full effect A series of monetary hikes in future interest rates.

Meanwhile, Matt Simpson, chief market analyst at City Index, said there is a possibility that interest rate increases will stall in the future.

“The downtime issue is definitely growing,” he said. “Some measures of inflation expectations are moving lower, and monthly inflation data indicates that inflation has peaked.”

However, inflation in Australia remains well above the RBA’s target of between 2% and 3%. decreased slightly in October. According to the monthly consumer price index of the central bank.

Charmaine Jacob

Stocks closed lower on Monday as concerns mounted that the Federal Reserve will continue to raise interest rates.

The Dow Jones Industrial Average fell by 482.78 points, or 1.4%, to close at 33,947.10 points. The S&P 500 fell 1.79% to settle at 3,998.84, while the Nasdaq Composite fell 1.93%, closing at 11,239.94.

– Samantha Sobin