Hong Kong shares rose more than 2% as Chinese trade data missed estimates

Rising interest rates and food inflation are headwinds for the Indian economy

The two risks that the Indian economy will face in 2023 are inflation and rising interest rates, State Bank of India chairman Dinesh Kumar Khara told CNBC’s “Squawk Box Asia” on Monday.

There is a risk that India and other economies will have to keep raising interest rates when central banks like the US Federal Reserve do, Khara said.

Food inflation is also a challenge as India “imports a significant proportion of its food needs”, added Khara.

– Su-Lin Tan

US midterms will not have ‘immediate, direct impact’ on China: Morgan Stanley

The US midterm elections will not lead to a direct and immediate impact on China, Morgan Stanley said in a note Monday.

The results, however, may suggest a proposal to screen US companies investing in China may re-emerge.

Senator Robert Casey in September pushed for such a process in the hearing of the Senate Banking Committee in September, citing “national security” problems.

If such a proposal were to pass, Morgan Stanley sees the information technology, industrial and healthcare sectors as the most affected, the note said.

Morgan Stanley added that they “do not expect a hard decoupling between the West and China”.

– Lee Yingshan

China’s October exports marked the first annual decline since May 2020

China’s exports in US dollar terms down 0.3% in October from a year ago, significantly missing expectations for an increase of 4.3% in the Reuters poll and a steep decline from 5.7% growth in September.

Imports also fell by 0.7%, lost forecast for a gain of 0.1% from the previous year after rising 0.3% in September.

The drop in US dollar terms last month marked the first annual decline since May 2020, according to Refinitiv Eikon data.

The yuan weakened by nearly 3% against the US dollar in October, according to Refinitiv Eikon.

In yuan terms, exports rose by 7% and imports by 6.8%, customs data released Monday showed.

– Evelyn Cheng

Coinbase criticizes Singapore’s crypto regulations, urging city-states to embrace retail trade

Singapore wants to be a Web3 hub, but does not agree to trade crypto at the same time, Coinbase‘s co-founder and CEO Brian Armstrong pointed out in a panel session last week.

“Those two things are incompatible in my mind, and I would like to see Singapore embrace retail trade and self-hosted wallets,” said Armstrong, speaking with Sopnendu Mohanty, chief fintech officer of the Monetary Authority of Singapore at the Singapore FinTech Festival 2022. .

Mohanty, in response, said retail investors are now “exposed to risks they don’t understand.”

“We believe that Web 3.0 is the future and what we want to do is to make sure that money that can be managed in this ecosystem is considered a safe asset, a safe currency,” said Mohanty. “As long as that’s the direction, we’re OK”.

– Sheila Chiang

China’s reopening is still ‘months away’ despite talk of preparations: Goldman Sachs

Speculation about China’s reopening led to a rally in markets last week, but economists at Goldman Sachs said it was still “a month away.”

“The actual reopening is still several months away as the vaccination rate of the elderly remains low and the case fatality rate appears to be high among the unvaccinated according to Hong Kong’s official data,” economists led by Hui Shan said in a note.

They added that the government seems to be working on an exit strategy, and that the firm expects the country to reopen in the second quarter of 2023.

— Jihye Lee

CNBC Pro: Morgan Stanley says global battery material stocks could rise more than 80%

Morgan Stanley expects shares in the Asian battery materials maker to rally by 85% by the end of next year.

This is an under-the-radar battery material supplier for Teslawhich has triple-digit revenue growth, plans to expand manufacturing to the United States.

Even JP Morgan analysts who use a “conservative valuation approach” expect the stock to rally by 25% in a year.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Apple says iPhone production is temporarily reduced due to Covid-19 restrictions in China

Apple says that the production of iPhone 14 is already there temporarily reduced due to Covid-19 restrictions at its assembly plant in Zhengzhou, China, according to one Sunday statement.

The warning could mean the tech company could struggle to meet demand in December as it deals with “significantly reduced capacity” at factories. The company has previously signaled slowing growth in its iPhone business earnings report last month.

The warning from Apple comes as China last week ordered lockdowns in Zhengzhou, where Apple does the majority of its iPhone production. According to Reuters, employees have fled the facility due to covid restrictions and epidemics.

– Sarah Min, Kif Leswing

CNBC Pro: There’s still opportunity in tech – here’s how to trade it: Analyst

Tech firms are facing a double whammy of bad news, and Disappointing earnings and continued rate hikes by the Federal Reserve both scales in the sector.

But with heavy tech Nasdaq down more than 30% year-to-date, analysts say there are some bright spots that can offer opportunities for investors.

Here are some of the top picks, including one stock with an average upside of more than 50%.

CNBC Pro subscribers can read more here.

— Weizhen Tan

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