Hong Kong stocks jump 4% ahead of China’s Covid briefing

Currency check: Asa-Pacific currency strengthened sharply, led by the Chinese yuan

Both the Chinese yuan on land and the sea strengthened against the dollar in the Asian session before a press conference on Covid measures.

The greenback lost 1.09% against the greenback and 0.65% against the greenback onshore yuan, and both trade around 7.16-level. The offshore yuan traded near 7.24 per dollar before strengthening sharply.

Other Asia-Pacific currencies also gained against the dollar. There Australian Dollar went up to $ 0.6701 after jumping from around $ 0.66-level, and the Korea won was at 1,326.79 per dollar compared to around 1,340 earlier on Tuesday.

— Abigail Ng

Chinese indices appear ahead of Covid brief

Indexes in China jumped more than 2% as investors closely watched developments in the nation’s zero-Covid policy after seeing losses in the previous session.

China’s CSI 300 index rose 2.97% in the morning session, while the Shanghai compound up 2.2%. There Shenzhen Element Index gained 2.172%.

Local media reports that the Chinese State Council will hold a press conference on Covid measures at 3 pm local time, or 2 am ET.

The nation saw a drop in the number of daily infections for the first time in more than a week.

– Evelyn Cheng, Jihye Lee

Xi in China will likely continue to be ‘very pragmatic,’ including on Covid policy, strategists say

Chinese President Xi Jinping has been realistic and practical about Covid, domestic real estate issues and politics since the end of the National Congress of the Communist Party of China, said Andy Rothman, an investment strategist at Matthews Asia.

“He was pragmatic about Covid policy, he announced a shift towards more towards living with Covid rather than Covid zero,” he said on CNBC’s “Squawk Box Asia” when asked about how the government could respond to the recent unrest in some parts of China.

“He’s been pragmatic on property, he’s been very pragmatic in dealing with Joe Biden, so I hope that continues,” Rothman said.

He added that he considers the unrest related to the extended zero-Covid policy to be largely in line with what is expected from the Chinese government.

“What the protesters seem to be asking for is what Xi Jinping has already said he wants to deliver,” he said. “He wants to deliver a path from zero tolerance for Covid, towards living with Covid like the rest of the world.”

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Rothman added that recent announcements to ease quarantine measures for international travelers suggest that delivering changes to the zero-Covid policy will be “relatively easier.”

“He doesn’t back down, [or] to give under pressure, he just delivers, on a more accelerated pace, what he already told the students that he wants to give them,” he said.

— Abigail Ng

Oil prices jump more than a dollar ahead of China brief

Oil prices rose ahead of a press conference to be organized by China’s State Council, as investors continue to monitor developments – by some losses seen on Monday, when it reached the lowest level in almost a year.

West Texas Intermediate futures rose 1.76% to stand at $78.59 per barrel, while Brent crude futures rose 2.28% to stand at $85.00 per barrel.

However, oil markets may “misjudge news of China’s shutdown,” Rystad Energy wrote in a note.

“[The latest lockdowns’] likely the effect on China’s short-term oil demand, particularly in transportation, is likely to be minor,” the note added, citing the company’s own research into real traffic activity in China.

Even as daily Covid cases continue to rise, cities like Shanghai have not shown a slowdown in road traffic activity, according to Rystad Energy’s own research.

— Lee Ying Shan

China likely won’t make sudden changes to its Covid policies: National University of Singapore

The Chinese government is unlikely to make sudden changes to its zero-Covid policy because it will bring chaos, Professor Wang Gungwu of the National University of Singapore said on CNBC’s “Squawk Box Asia.”

“If you change the policy suddenly, I think the damage and the consequences would be even worse – it would be really chaotic because I think the spread of Covid will be absolutely unprecedented,” said Wang.

He added that he expects Chinese leader Xi Jinping to make adjustments at more local levels to ease public dissent.

Wang said Xi does not want to officially admit “the policy has been wrong for a while,” but also cannot change it immediately.

– Jihye Lee

Hong Kong-listed property shares rise after China changes fundraising rules

Equities related to Hong Kong-listed property developers jumped after China’s regulator announced it would lift a ban on raising equity funds for the sector.

China’s Securities Regulatory Commission has announced five measures to support the real estate market, including lifting a years-old restriction on property developers selling shares to raise financing.

Cifi Holdings Group jumped 13.01% in the first hour of trading, Garden country also rose 13.36%, The Logan Group up 10.23% and Longfor Group won 9.88%.

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— Jihye Lee

Hong Kong on pace for best month since April 1999

The Hong Kong Hanging index Seng is on pace to post its best month since April 1999, when the index gained 21.85%.

The index rose more than 3% on Tuesday morning, and is up about 22% for the month of November, according to Refinitiv data.

The HSI closed 1.57% lower on Monday, the worst day in a week, when the Hang Seng lost 1.87% on November 21.

Gina Francolla, Jihye Lee

Japan’s unemployment rate is unchanged, retail sales miss estimates

Japan’s unemployment rate for October was steady from September’s reading of 2.6%, according to official data. The figure is slightly higher than the mean expectation of 2.5% of economists polled by Reuters.

The job-to-applicant ratio, which measures active job openings per job seeker, was at 1.35. This indicates that there are 135 jobs available for every 100 applicants, signaling a still tight job market in Japan.

The nation’s retail sales rose 4.3% in October on an annualized basis, missing expectations of a 5% increase forecast in a separate Reuters poll.

The latest reading marks the first slowdown in retail sales growth that it has seen since June of this year.

Jihye Lee

The Fed should continue to hike into next year, Bullard said

James Bullard of Jackson Hole, Wyoming.

David A. Grogan CNBC

St. Louis Fed President James Bullard said Monday that the Fed should continue to raise its benchmark interest rates in the coming months and that the market may be underestimating the likelihood that the Fed will become more aggressive.

“We will have to continue to pursue our interest rate hikes in 2023, and there is some risk that we will have to go even higher than [5%],” Bullard said in a Barron’s Live webinar.

Bullard made waves in financial markets earlier this month when he said the Fed’s hikes have had “only limited effect” on inflation so far and that the benchmark interest rate may need to rise to between 5% and 7%.

Bullard, who is a voting member of the FOMC, said that the Fed will need to hold off on any rate cuts next year even if the inflation picture begins to show consistent improvement.

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“I think we will probably have to stay there all in 2023 and in 2024, given the historical behavior of core PCE inflation or the Dallas Fed cut inflation means. They will go down, I think. This is my baseline. But they will probably ‘”would come down as quickly as the markets would like and probably the Fed would like,” Bullard said.

— Jesse Pound

CNBC Pro: Asset Manager Names 9 ‘Cheap’ Stocks to Buy as Recession Fears Grow

It’s “critical” for investors to watch valuations now as a recession looms and inflation looks set to continue, said Steven Glass, managing director of Pella Funds Management.

In this environment, Glass selected a list of nine stocks that he said, “look particularly cheap given their growth outlook.”

CNBC Pro subscribers can read more here.

– Weizhen Tan

Cryptocurrency prices fell but quickly recovered after BlockFi declared bankruptcy

The price of bitcoin took a dive on Monday after BlockFi officially announced it has filed for Chapter 11 bankruptcy in the wake of the FTX bankruptcy.

Bitcoin briefly fell to as low as about $16,000 but has rebounded previously. It was last lower by just 1% above $16,300, according to Coin Metrics. The action of the ether price showed a similar rebound.

BlockFi has been in bad shape since the spring, after the explosion of the Terra project that led to the implosion of Three Arrows Capital. The company then accepted a bailout from FTX that would help it avoid bankruptcy. Of course, FTX is now managing its own bankruptcy.

— Tanaya Macheel

CNBC Pro: Goldman Sachs names global manufacturers exposed to a China slowdown

According to Goldman Sachs, many global companies are heavily exposed to China, including some of the world’s largest automakers, which generate between 20% and 40% of their worldwide sales in the country.

In a note to clients on November 22 – before the latest protests – the investment bank outlined the global auto industry’s exposure to Chinese consumers.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Shares ended Monday’s session lower

After a week of Thanksgiving, the three major indexes ended Monday lower as investors sold amid rising concerns about supply chain disruptions amid Covid-related protests in China.

There Dow Jones Industrial Average lost 1.45%, or 497.57 points, and closed at 33,849.46. There S&P 500 also shed 1.54% to finish at 3,963.94. There Nasdaq composite slipped 1.58% and ended at 11,049.50.

— Alex Harring


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