Fed Minutes, Bank of Korea Decision, Sri Lanka

Malaysian stocks rise as State Palace announces prime minister

Shares listed in Malaysia rose as the State Palace announcement Anwar Ibrahim as the country’s prime minister.

The reference KLCI index was trading up 3.86% after previous negative sessions, trading at the highest levels in more than two months.

Telecommunications group Axiata Group Bhd increased by 12.4% and Maxis Bhd increased by 11.2%. Malaysian Peninsula rose 7.8% and the rubber glove maker Upper glove also gained 7.8% in the afternoon session.

The malaysian bell strengthened slightly against the US dollar and last settled at 4.5080.

Bill Ackman Says Hong Kong Dollar Peg Will Break

Billionaire hedge fund manager Bill Acman questioned the sustainability of the hong kong dollarpegs the greenback, adding that his company Pershing Square has a significant short position in the currency.

“We have a large notional short position against the Hong Kong dollar thanks to the holding of put options,” the CEO of Pershing Square Holdings said in a series of tweets.

“The peg no longer makes sense for Hong Kong and it’s only a matter of time before it breaks,” Ackman wrote.

However, Bank of Singapore currency strategist Sim Moh Siong said the peg will remain resilient as negative sentiment towards China has recently “calmed down” with recent adjustments including the period. quarantine of China for international travellers.

“The peg is likely to hold as fundamentals have continued to support the Fed,” he said. “I think things could [have] calmed down somewhat on the Chinese front and that in turn could also strengthen the resilience of the peg to the Hong Kong dollar,” he said.

– Jihye Lee

Grab, Gojek responds to Singapore’s move to extend job protections to gig workers

Grab said he was broadly supportive of Singapore latest announcement to extend job protection and benefits for gig workers from 2024.

The decision includes the guarantee of injury compensation and pension payments as part of new standards for the gig economy, mainly affecting delivery and ride-sharing companies.

Responding to CNBC’s request for comment, Grab said he was “widely supportive” of the measures, adding that implementation must be “gradual,” citing current headwinds for the global economy, such as the recession problems.

“We will be guided by these considerations to ensure minimal impact on our partners’ revenue and consumer prices,” Grab said.

The company called for the measures to be applied to all concert platforms as well, citing fairness concerns.

Gojek said measures requiring companies to align Central Provident Fund pension contribution rates with those of employers “will mean less net income” for gig workers, and that the company already has similar policies. .

“These recommendations will build on the existing warranties we have in place for our driver-partners, offered through our driver benefits program,” Gojek told CNBC.

– JP Ong, Sheila Chiang

New Zealand central bank discussed 100 basis point hike, governor says

The Reserve Bank of New Zealand had considered an even bigger rate hike in its last official decision on cash rates – although its decision to raise rates by 75 basis points is already its largest on record. .

“I would say we had more talk around a 75 vs. 100 than around a 50 vs. a 75,” RBNZ Governor Adrian Orr said on CNBC’s “Squawk Box Asia.”

“Now we can say that we are unambiguous in our monetary position,” Orr said, “we must be, given the compactness of the current economy,” he said.

– Jihye Lee

Foxconn says new hires raised pay issues, ongoing communication adds

Apple major supplier foxcon said new hires at its iPhone factory in Zhengzhou “have appealed to the company” regarding compensation, according to a statement on its website.

The statement comes after the media reported a mass protest by hundreds of workers appears to have been sparked by a delay in bonus payments, with videos circulating on social media showing people smashing CCTV cameras and windows.

“The company emphasized that the severance has always been fulfilled on the basis of a contractual obligation and will continue to communicate with affected colleagues,” Foxconn said in its statement, adding that reports of Covid-positive employees residing in the factory dormitories are “obviously false”. “

“Regarding any violence, the company will continue to communicate with employees and the government to prevent similar incidents from happening again.”

Taiwan-listed shares of Hon Hai Technology Group, Foxconn’s official name, traded down 0.5% at the start of Thursday’s session.

– Jihye Lee

Bank of Korea raises rates by 25 basis points and meets expectations

The Bank of Korea raised its benchmark interest rate down 25 basis points to 3.25%, a smaller rise than its previous move and largely in line with expectations.

A Reuters poll of economists expected the move amid signs of slowing domestic growth.

The country’s inflation rate for October was 5.7%, according to the latest figures released earlier this month – well above the central bank’s 2% target.

BOK Governor Rhee Chang-yong is due to hold a press conference later today on the monetary decision.

– Jihye Lee

CNBC Pro: Asset manager says investors need to buy this large-cap stock now

There’s one large-cap stock investors need to buy right now, according to Rob Luna, chief investment strategist at asset manager Surevest.

He calls his CEO an “important visionary”.

Although Luna picked the only large-cap stock, he generally advised investors to reassign to smaller names, naming two stocks he called “best of breed.”

CNBC Pro subscribers can learn more here.

—Weizhen Tan

Stocks rise for second day as Wall Street applauds Fed signaling lower rate hikes ahead

Stocks rose on Wednesday and posted the second straight day of gains as investors cheered Federal Reserve minutes that signaled a slower pace of interest rate hikes ahead.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06. The S&P 500 gained 0.59% to close at 4,027.26 and the Nasdaq Composite rose 0.99% to 11,285.32.

Nordstrom Stocks fell 4.24% after the department store chain reaffirmed its forecast. However, Nordstrom beat earnings and sales expectations in its latest results, according to consensus expectations on Refinitiv. You’re here rose 7.82% after Citi upgraded the stock from sell to neutral. Deere jumped 5.03% on an earnings beat.

—Carmen Reinicke

CNBC Pro: Betting against UK supermarket, short seller expects share price to crash nearly 50%

There is more pain ahead for investors in a UK supermarket business if a short seller prediction comes true.

The hedge fund currently holds a bear bet worth £32.6m and expects the grocer’s shares to fall 44%.

The fund’s chief investment officer also believes the supermarket will raise new capital by diluting shareholders year after year to stay afloat in a tough environment.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

Fed minutes show lower rate hikes ahead, stocks gain

Shares rose on Wednesday afternoon after the release of the minutes of the November meeting of the Federal Reserve. The report showed that the central bank is seeing progress in its fight to reduce inflation and expects to slow the pace of interest rate hikes going forward.

“A substantial majority of participants felt that a slower pace of increase would likely soon be appropriate,” the minutes read. “Uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons given for the importance of such an assessment.”

This means the Fed will likely make a smaller rate hike in December and the early months of 2023.

Markets applauded the news. The Dow Jones Industrial Average rose 130 points, or 0.38%. The S&P 500 gained 0.70% and the Nasdaq Composite rose 1.10%.

—Carmen Reinicke

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