Hong Kong shares fall; Asian markets were mixed ahead of the Fed interest rate decision

Oil prices rose following an industry report that showed a decline in US crude stockpiles

Oil prices rose on Wednesday, reflecting a drop in U.S. crude stockpiles as demand persisted despite higher interest rate hikes. Reuters The report cited US Petroleum Institute figures released on Tuesday.

Brent crude futures Oil rose $1.31, or 1.46%, to $95.87 a barrel. American West Texas Intermediate A barrel rose 1.28% to $89.67.

– Lee Ying Shan

South Korean, Japanese defense stakes rise after North Korea confirms missile launch

Defense-related stocks listed in South Korea and Japan rose after military officials in Seoul confirmed North Korea had fired 10 types of missiles from its east coast.

A ballistic missile in a barrage of missiles landed in free waters next to South Korea’s northern demarcation line, the de facto maritime border separating the two Koreas – a first since the Korean War, officials said.

Shares of Hanwha Aerospace Defense Corp rose more than 5% in morning trading in Korea, and Victech rose more than 7%.

Japanese defense stocks traded slightly higher Hosoya Pyro-Engineering Up to almost 1%.

– Jihye Lee

Bank of Japan board members discuss inflation, Kuroda hints at future policy change

At a recent meeting of the Bank of Japan, policy board members agreed that it was appropriate to “continue with its large-scale monetary easing.” The minutes were released on Wednesday.

One member said the central bank’s easing stance should continue as long as expectations remain low, even if inflation picks up in the short term.

The BOJ’s monetary policy is aimed at price stability, not exchange rates, a few members said, adding that the need to maintain the status quo should be “carefully interpreted.”

Some members said the expansion of inbound tourism consumption was a way to benefit from the weak yen.

Separately, BOJ Governor Haruhiko Kuroda is reported According to Reuters, he told parliament that the yield curve control policy may be adjusted in the future.

“If achieving our 2% inflation target comes into view, making the yield curve control more flexible will become an option,” Kuroda was quoted as saying.

– Off Abigail

South Korea’s inflation rises more than estimated in October

South Korea’s consumer price index rose 5.7% in October, beating the average estimate of 5.6% predicted by a Reuters poll.

Figures are data from Korea Prices rose 0.3% compared to the previous month.

Electricity, gas prices and industrial prices led the rise, and excluding food and oil prices, core inflation rose 4.8% from a year ago.

– Jihye Lee

CNBC Pro: Goldman’s Currie reveals ‘best’ hedges against inflation, rate hikes and geopolitical risks

Goldman’s Jeff Currie says there is one investment that protects investors from rising interest rates, inflation and geopolitical risk.

Currie, the global head of commodities research at Goldman Sachs, said it has 20-30% growth potential in the short term, and there are additional risks to the price target.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Greater Chinese shares rallied on unconfirmed posts of reopening debate

Stocks in Hong Kong and Mainland China gathered A panel was set up to reopen talks in China after unconfirmed reports on Tuesday. Chinese Foreign Ministry spokesman Zhao Lijian said Reuters That he was unaware of the situation.

“I don’t know where you got this information from. I really don’t know anything about it,” Zhao was quoted as saying.

Hao Hong, economist at Crow Investment Group He tweeted that the rumored group was reviewing data from multiple countries It aims to reopen in March next year.

– Jihye Lee

Stocks close lower

Stocks fell as markets braced for another Fed rate decision due out on Wednesday.

The Dow Jones industrial average fell 79.75 points, or 0.24%, to 32,653.20, while the S&P 500 fell 0.41% to 3,856.10. The Nasdaq composite was down 0.89% at 10,890.85.

– Samantha Subin

New York Life’s Goodwin says the Fed pivot is a long way off

According to Lauren Goodwin, an economist and portfolio strategist at New York Life Investments, investors may be a little more excited about potential changes from the Federal Reserve.

Goodwin said in a note that he expects the Fed to raise interest rates by 0.75 percentage point on Wednesday and by half a point in December, but the slowdown should not be viewed as the start of a major shift away from the Fed.

“A central bank pause is not the same as a pivot. Of course, worsening economic and credit conditions may make the central bank docile at some point, but a full center is unlikely to accommodate over the next year,” Goodwin said. Note.

Goodwin pointed out that the first rate hikes should now begin to show their impact across the broader economy rather than housing. However, the central bank will need several months of data before changing course.

“At this point, with inflation as surprising as it already has been, the Fed wants to see clear signs of a reversal in wage growth ahead of the lead. Recession should be viewed as a base case rather than a risk,” Goodwin said.

– Jesse Pound

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