Stocks opened again jumping after China’s easing Covid measures were reported
The Chinese yuan is at its strongest level in more than a month after China eased Covid measures
The Chinese yuan marked its strongest level in more than a month after China announced some easing of its Covid measures.
The land Chinese yuan last traded at 7.0949 against the US dollar, the strongest level the currency has seen since the end of September.
Oil prices rose more than 2% on the back of China easing quarantine measures
China reduces Covid quarantine period by two days
Chinese state media announced on Friday that the country will reduce quarantine time for international tourists by two days.
The revised rules state that travelers will be required to stay in quarantine facilities for five days, shorter than the previous seven-day period, with a three-day home observation period.
– Evelyn Cheng, Lee Ying Shan
Correction: This post was updated to accurately reflect the duration of the house observation up to three days.
Earnings preview: Softbank posted a net profit after seeing previous losses
Softbank is expected to post a net profit in the upcoming quarterly earnings.
Average forecasts predict the Japanese conglomerate will report an annual net profit of 2.769 trillion yen ($19.5 billion) for the second quarter ended Sept. 30, according to a Refinitiv survey.
The company is installed two consecutive periods of quarterly net lossesWith a net loss of 3.16 trillion yen in the first quarter ending June 30 and a net loss of 2.1 trillion yen in the fourth quarter ending March 30.
– Lee Yingshan
CNBC Pro: Analysts love these EV-related stocks — and give one more than 100% upside
While automakers may be the obvious way to play the electric vehicle boom, the broader supply chain may also offer opportunities for investors.
A quarter of 75 component shares of Global X Autonomous and Electric Vehicles ETF are technology names, with materials and industrial stocks, as well as automobile stocks, among others.
CNBC Pro screened the ETF for stocks that are buy-rated by the majority of analysts, with serious upside potential.
– Zavier Ong
Movers Hong Kong: Alibaba, JD.com, Tencent soar in the opening
Currency check: Japanese yen, Chinese yuan at a strengthened level
The JPY and Chinese yuan hovered around the strengthened level after the US dollar index fell more than 1% overnight on softer-than-expected inflation reports.
The yen stands at 141.63 against the greenback, hovering around the strongest level seen in two months before weakening past 150 in October.
The yuan onshore was around 7.18, also trading near its strongest level to the dollar in almost a month.
— Jihye Lee
CNBC Pro: Goldman Sachs says it bought these stocks before China’s $2.6 trillion reopening boom
Chinese stocks could get a 20% boost if the country eases its zero-Covid policy, according to Goldman Sachs.
The investment bank named some of the stocks it expects to benefit from the reopening.
Pro customers can read more here.
– Zavier Ong
Asia-Pacific indices pop open after US inflation report
CNBC Pro: Bitcoin will fall further, says the fund manager – until this catalyst kicks in
Bitcoin is down by 75% from the all-time high, and cryptocurrency exchanges are on brink of bankruptcy. In such an environment, bond fund managers reveal a need for price rallies.
Michael Howell from Cross Border Capital also said that because the catalyst is missing, there is an increased risk of investors getting in “a bit too early”.
– Ganesh Rao
CPI rose less than expected
US consumer price index – a broad measure of inflation – rose by 0.4% in October from a month ago. On a year-over-year basis, the CPI rose 7.7%.
Economists polled by Dow Jones expected a month-over-month gain of 0.6% and a year-over-year advance of 7.9%.
Excluding the costs of food and volatile energy, it is said that the core CPI increased 0.3% for the month and 6.3% on an annual basis, compared to the respective estimates of 0.5% and 6.5%.
– Jeff Cox
The dollar index is on pace for the worst day since December 2015
The US dollar slid Thursday against a basket of other currencies as investors cheered the October CPI report came in weaker than expected, signaling that inflation may have peaked.
The dollar index shed 2%, putting it on pace for its worst daily performance since December 4, 2015. If the index falls more than 2.1%, it will hit levels not seen since 2009.
This week, the dollar index fell 2.3% and is on pace for its worst week since March 2020.
– Carmen Reinicke
Biden to raise concerns about Xi’s relationship with Putin ahead of G-20 summit
The US government has introduced some of the most restrictive export controls yet aimed at cutting China off from advanced semiconductors. Analysts say the move could disrupt China’s domestic chip industry.
Mandel Ngan | AFP | Getty Images
President Joe Biden is expected to discuss Russia’s war in Ukraine with Chinese President Xi Jinping next week in a face-to-face meeting.
The meeting between the two leaders, the first since Biden ascended to the US presidency, will take place before the G-20 Summit in Bali, Indonesia.
“I think the president will be honest and direct with President Xi about how we see the situation in Ukraine and Russia’s war of aggression,” a senior Biden administration official told reporters on the phone.
“This is a topic that the president and President Xi have talked about many times before. They talked about it extensively in March in a video call and then they talked about it again in July, so it’s part of the ongoing conversation between the two of them,” added the official, who said in an anonymous state.
– Amanda Macias