Asia-Pacific markets fall ahead of US inflation data

Japanese Yen’s further weakening shows Tokyo isn’t ‘drawing the line in the sand’: RBC Capital

Japan has ample foreign exchange reserves it could use to defend its currency, but it’s “quite clear now that Tokyo isn’t drawing the line in the sand” on the dollar-yen, said Alvin Tan, head of of the Asia FX strategy at RBC Capital Markets. .

Japanese authorities failed to intervene despite the yen falling overnight to 146.98 against the dollar – lower than the 145.9 level that prompted officials to intervene in September.

“What happened yesterday is quite instructive,” Tan said. “They haven’t stepped in yet even though it’s currently trading well above 146.”

Japanese officials reportedly said they were ready to act and are watching the rate of weakening of the yen.

— Charmaine Jacob

TSMC’s third-quarter net profit rises about 80%, beats estimates

Taiwan Semiconductor Manufacturing Company earnings beat estimates by posting a nearly 80% increase in net profit in the third quarter compared to a year ago.

Apple’s net income rose to 280.9 billion New Taiwan dollars ($8.81 billion) for the July-September quarter – from 156.26 billion New Taiwan dollars for the same period in 2021.

Analysts had expected net profit of 265.64 billion New Taiwan dollars, according to Refinitiv data.

– Jihye Lee

Chip war benefits Asian manufacturers: Malaysia Semiconductor Industry Association

Malaysia to benefit from US chip export restrictions, Malaysian industry association says

U.S. export restrictions could benefit many Asian manufacturing nations, including Malaysia, said Wong Siew Hai, president of the Malaysian Semiconductor Industry Association.

“Since they are putting tariffs on chips to be shipped from China to the United States, China has to find a solution. So basically there is a lot more room for opportunity for everyone,” said Thursday. Wong at CNBC’s “Squawk Box Asia.”

“Currently, there are cases of companies setting up in Malaysia, Vietnam… [and] there are many more, because with more restrictions imposed by the United States on China, China must find solutions,” he said.

— Su-Lin Tan

TSMC secures one-year license from US for chip expansion in China, Nikkei reports

Taiwan Semiconductor Manufacturing Co. was granted a one-year license to continue ordering US chipmaking equipment for its expansion into China, Nikkei reportedciting sources.

The U.S. government license allows the company to continue shipping equipment to its plan in Nanjing, China, and serves as a temporary waiver of the latest General rules announced by the United States Controls aim to prevent China from obtaining or manufacturing chips and key components for supercomputers.

TSMC declined to comment on Nikkei.

It comes after South Korea’s SK Hynix announced on Wednesday that it had received a one-year exemption from the US government.

– Jihye Lee

CNBC Pro: Goldman Sachs favors Tesla and another major automaker even in an economic downturn

Goldman Sachs raised its forecast for electric car sales and said You’re here and another major automaker will benefit from the Cut Inflation Act.

It comes at a time when the auto sector faces multiple headwinds in 2023, from rising interest rates to falling consumer demand.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

Japan’s producer price index in September rose the most in five months

Earnings Announcements: Taiwan’s TSMC, Japan’s Fast Retailing

Taiwan semiconductor manufacturing company is expected to see a 34.6% increase in revenue to $20.03 billion in the third quarter of this year, from $14.88 billion in the same period last year, according to Refinitiv data.

The stock traded 1.38% higher on the morning of Asia while the wider Taix was roughly flat. Its U.S.-listed shares gained about 1% overnight.

Meanwhile, analysts expect Japan Quick Retail to post a record annual profit of 291 billion yen ($1.98 billion), an increase of 17% for the full year, according to Refinitive estimates.

Shares of Fast Retailing were last up 0.09%.

—Abigail from

CNBC Pro: Is Meta a Buy or Dodge Stock? A bull and a bear clash

These are tumultuous times for Metainvestors fleeing this year as it struggles with headwinds.

At the end of September, the stock plunged to trade at its the lowest since January 2019 – and since then it has gone down further.

Are big investors looking at Facebook’s parent company as a buy, now that its shares are so cheap, or is that something to avoid?

CNBC “Street signs Asia” sat down with Paul Meeks of Independent Solutions Wealth Management and Jake Dollarhide of Longbow Asset Management as they square off to make their bullish and bearish cases for Meta.

Pro subscribers can learn more here.

—Weizhen Tan

Shares of biotech firm BeiGene jump 20% after positive update on blood cancer drug

Hong Kong-listed shares of Beigene jumped 20% at the open after the company announcement positive late-stage data from its blood cancer drug.

The biotech company said its treatment for adult patients with chronic lymphocytic leukemia or small lymphocytic lymphoma is currently under review by the FDA, with a decision expected in January 2023.

– Jihye Lee

Toshiba up more than 9% after news of potential takeover

Shares of Toshiba jumped as much as 9.4% after a report said a consortium could acquire the company for around $19 billion.

Kyodo News reported that the Tokyo-based fund that leads the group, Japan Industrial Partners, has asked several companies, including Chubu Electric Power and Orix, to participate in the move, citing people familiar with the matter.

Toshiba could be delisted if the takeover is completed.

– Jihye Lee

CNBC Pro: This EV battery-related sector is currently attractive, and Citi names stocks to cash in on

This sector could be the next big tech to power electric vehicles, with Citi calling it one of the ten fastest growing industrial technology markets as it highlights the opportunities in this space.

Morgan Stanley also flagged a stock it says is “hidden EV battery play.”

CNBC Pro subscribers can learn more here.

—Weizhen Tan

Stocks close lower after choppy session

All three major averages closed lower on Wednesday after swinging between gains and losses throughout the day.

The S&P 500 lost 0.33% to 3,577.03, its lowest close since November 2020 and its sixth consecutive daily loss.

The Dow Jones Industrial Average fell 28.34 points, or 0.10%, to close at 29,210.85. The Nasdaq Composite fell 0.09% to close at 10,417.10.

—Carmen Reinicke

Fed minutes show central bank sees more rate hikes, higher rates for longer

Minutes from the Federal Reserve’s September meetingreleased on Wednesday, show that the central bank plans to keep raising interest rates and hold them higher until inflation shows signs of easing.

The minutes reflect policymakers’ discussions ahead of the latest hike of 0.75 percentage points, the third straight hike of this magnitude achieved this year.

The central bank was surprised by the persistent pace of inflation, but remains optimistic that rate hikes will help keep rising prices in check.

—Carmen Reinicke, Jeff Cox

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