Asia-Pacific markets mixed, Hong Kong property stocks gain ahead of John Lee speech

Hong Kong property stocks rise ahead of annual policy speech

Shares of Hong Kong-listed property companies rose in morning trading ahead of chief executive John Lee’s policy speech.

Land and overseas investment in China increased by 5%, Active CK gained 2.75% and sino land added 2.5%. country garden also added 4.26% ahead of Lee’s speech.

Local media in Hong Kong report that foreign owners may receive buyer’s stamp duty discounts.

—Abigail Ng

Apple supplier stocks fall on iPhone 14 Plus production cut report

Shares of Apple suppliers in Asia fell after the tech company would have asked a manufacturer in China to halt production of an iPhone 14 Plus component as Apple reassesses demand for the product.

Information reported that two other suppliers who assemble modules from this component have also considerably reduced their production.

LG Innotek and SK Hynix in South Korea lost around 2%, while Japan TDK Company and Murata manufacturing lose more than 1% each.

Apples The stock briefly lost $4 per share overnight, but closed the regular session up 0.94% as major indexes gained.

—Abigail Ng

CNBC Pro: Goldman Sachs Outlines Four Economic Scenarios and Predicts Gold’s Performance in Each

It’s been a turbulent year for gold, with the precious metal “pulled between growth and inflation risks, rising real rates and dollar strength,” Goldman analysts wrote in an 11 october.

“In our view, there remains a great deal of uncertainty around the future path of inflation, growth, rates, and central bank (CB) reaction functions in the United States.”

Goldman ran four different economic scenarios and predicted where gold prices might end up in each case.

CNBC Pro subscribers can learn more here.

U.S. crude futures rise $1 a barrel on expectations that Biden will release oil from the Strategic Petroleum Reserve

future of West Texas Intermediate Crude rose by about $1 or 1.33% and the futures contracts of Crude Brent rose $0.83, or 0.92%, as the Biden administration is expected to release more oil from the United States Petroleum Strategic Reserve.

The plan could be announced as early as Wednesday, sources told CNBC.

The move aims to extend the current SPR delivery schedule, which began this spring, until December, the sources said.

–Kayla Tausche, Jihye Lee

RBNZ expected to achieve ‘giant hike’ of 75bps in November: ANZ

ANZ economists expect the Reserve Bank of New Zealand to hike 75 basis points each at its next meetings in November and February.

New Zealand’s central bank raised interest rates by 50 basis points to 3.5% earlier this monthraising the cash rate to its highest level in seven years.

ANZ said the Reserve Bank of Australia is likely to take a more conservative path than the RBNZ, resulting in a “much wider policy differential going forward in 2023”.

The next RBNZ monetary policy meeting is scheduled for November 23.

– Jihye Lee

Apple stumbles upon report of production cut

Apple shares fell and briefly turned negative after a report from The Information that the tech giant was cutting production of its new iPhone 14 Plus.

The move by Apple, the biggest US stock, took the major averages back near their lows for the day, although they have since recovered some of that ground.

How high can the Fed increase the 10-year yield?

The Fed is expected to hike another three-quarters of a percentage point next month, but the central bank could reach its limit in dictating long-term interest rates, according to Jim Paulsen of the Leuthold Group.

“There is considerable precedent in past tightening cycles for the Fed to be closed by the bond market ‘flashing’ first. The Fed may soon attempt to raise the funds rate to 4%, 4.5% or even 5 % point, longer-term bonds might just stop rising and refuse to follow the Fed’s lead,” Paulsen wrote in a note to clients on Tuesday.

The 10-year Treasury yield has traded above 4% in recent days, hitting its highest levels in more than a decade. With growing concern of a recession in 2023, it could be close to a ceiling, Paulsen said.

“Each time the Fed tightens monetary policy further, recession fears increase relative to inflation fears. Ultimately, as the Fed becomes more and more aggressive, recession becomes a bigger concern than inflation and bond buyers are starting to outnumber bond sellers, which is to say the bond market is blinking,” Paulsen added.

—Jesse Pound

About Vicki Davis

Check Also

The Rupee gains 45 paise to close at 81.47 against the US Dollar

The rupee appreciated 45 paise to close at 81.47 (provisional) against the US dollar on …