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☆ Some fund managers see merit in China's deeply discounted stocks
▼ + stars: | 2023-11-14 | by ( Summer Zhen | ) www.reuters.com time to read: +5 min

U.S. asset manager Fidelity International is highlighting China's looser monetary policy and the government's recent 1 trillion yuan ($137.10 billion) borrowing-and-spending sovereign bond plan as a tailwind for the country's stock markets. London-based £3 billion fund manager Somerset Capital Management likewise finds China exciting. The stock market has yet to recover, but has stabilised. Morgan Stanley estimates long-only foreign investors now have their deepest underweight positions in China and Hong Kong equities in years. Chinese stocks could see a short-term sentiment pick-up given foreign funds have such light positions in the market, said Redmond Wong, Greater China market strategist at Saxo Markets.

Persons: Dado Ruvic, ”, Marty Dropkin, Mark Williams, Morgan Stanley, Patrick Ghali, Sean Ho, Vivek Tanneeru, Redmond Wong, Summer Zhen, Xie Yu, Vidya Ranganathan, Kim Coghill Organizations: REUTERS, Fidelity, Asia Pacific, Fidelity International . London, Somerset Capital Management, Nasdaq, Japan’s Nikkei, Sussex Partners, Hong, China, Hang Seng Tech, Monetary Fund, Cambridge Associates, Capital, “, Triata, Matthews Asia, Saxo Markets, Thomson Locations: HONG KONG, China, U.S, Asia, Hong Kong, London, Boston, San Francisco, Greater China

☆ Hong Kong's IPO market is still in a slump despite an expected rebound
▼ + stars: | 2023-11-06 | by ( Sheila Chiang | ) www.cnbc.com time to read: +4 min

Hong Kong Street Scene, Mongkok District with busses Nikada | E+ | Getty ImagesHong Kong's initial public listing market remains in a slump, even as analysts predicted a market rebound in the second half of the year. "The Hong Kong market has not recovered as much as we would like," Irene Chu, partner at KPMG China, told CNBC. In the first three quarters of the year, the Hong Kong IPO market concluded 44 listings, and raised 24.6 billion Hong Kong dollars ($3.14 billion), according to KPMG. Hong Kong's stock market was among the worst performing last year, shedding 15% in 2022 for its third-straight year of declines. "The Hong Kong stock market remained weak in Q3 2023, as did stock valuations, because of macroeconomic developments, in particular around U.S. interest rate hikes.

Persons: Irene Chu, Hong, Ringo Choi, EY, Zhejiang Leapmotor, Arun George, It's, Chu Organizations: Hong, KPMG China, CNBC, Hong Kong, KPMG, Hang Seng, J, T Express, Reuters, Deloitte, Hong Kong's, ZJLD, Onewo, Global Equity Research, International Monetary Fund Locations: Hong, Mongkok District, Hong Kong, Ringo Choi Asia, Pacific, Asia, Indonesian, Zhejiang, China, Shanghai, Shenzhen, KPMG China, —

☆ Asia markets rise as China's factory activity contracts for fourth straight month
▼ + stars: | 2023-07-31 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

(Photo by He Shaoping/VCG via Getty Images)Asia-Pacific markets rose on Monday as China's factory activity for July remained in contraction territory for the fourth straight month. The official manufacturing purchasing managers index came in at 49.3, higher than June's figure of 49.0, according to the national bureau of statistics. The PMI for non-manufacturing activity came in at 51.5, a slower rate of expansion compared to the 53.2 in June. Hong Kong's Hang Seng index surged over 1.71%, while the Hang Seng Tech index saw a larger climb of 4.84%. The country's industrial output for June came in lower than expected, registering a 2% growth month on month compared to the 2.4% expected by economists.

Persons: Hong, HSI, Australia's Organizations: Getty Images, PMI, Hang Seng, Shanghai, Shenzhen, Nikkei, Reserve Bank, Reuters Locations: SHENZHEN, CHINA, Shenzhen, Guangdong Province of China, Asia, Pacific

☆ Hopes for a Fed pause bolster risk rally
▼ + stars: | 2023-06-13 | by ( Jamie Mcgeever | ) www.reuters.com time to read: +3 min

(Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Traders are putting a 95% probability on the Fed standing pat on Wednesday, a consensus so strong the Fed will almost certainly respect. The focus for investors will be on the statement and Fed Chair Jerome Powell’s press conference for signs on whether it will be a ‘hawkish’ or ‘dovish’ pause. The NYSE FANG+ index of mega tech stocks rose 0.9% for a fourth consecutive daily rise, bringing its year-to-date gains to 72%. One major headwind, particularly for Asian assets, could be the surge in U.S. Treasury yields, although that for now at least is being mitigated by the dollar’s slide to a three week low.

Persons: Jamie McGeever, Amit Dave, China’s, Jerome Powell’s, ’ Organizations: Reuters, REUTERS, Federal, Nasdaq, Traders, NYSE, Japan’s Nikkei, Treasury Locations: Ahmedabad, India, U.S, South Korea, Asia, Japan, New Zealand

June 14 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. This could be a precursor to lower benchmark interest rates in the coming weeks - yuan traders certainly seem to think so. Traders are putting a 95% probability on the Fed standing pat on Wednesday, a consensus so strong the Fed will almost certainly respect. The NYSE FANG+ index of mega tech stocks rose 0.9% for a fourth consecutive daily rise, bringing its year-to-date gains to 72%. One major headwind, particularly for Asian assets, could be the surge in U.S. Treasury yields, although that for now at least is being mitigated by the dollar's slide to a three week low.

Persons: Jamie McGeever, China's, Jerome Powell's, Jamie McGEever Organizations: Federal, Nasdaq, Traders, NYSE, Japan's Nikkei, Treasury, Thomson, Reuters Locations: U.S, South Korea, Asia, Japan, India, New Zealand

Regional and global markets on Friday chalked up solid gains and volatility measures slumped after the release of forecast-smashing U.S. jobs figures. It looks like the 'sell in May and go away' maxim won't apply this year - investors are bullish and they are buying. Looking ahead, investors in Asia have plenty of economic events and monetary policy decisions to get their teeth into this week. Inflation data from Indonesia, the Philippines, Thailand, Taiwan and China will be released, starting with Indonesia on Monday. Economists polled by Reuters expect annual CPI inflation eased in May to a one-year low of 4.22% from 4.33% in April.

Persons: Jamie McGeever, Diane Craft Organizations: Nikkei, Manufacturing, U.S . State Department, Indonesia, Reuters, Reserve Bank of Australia, Reserve Bank of, Indonesia CPI, Thomson Locations: U.S, Asia, Japan, China, India, Australia, Korea's, Beijing, Indonesia, Philippines, Thailand, Taiwan, Reserve Bank of India, Singapore

☆ Tech shares see biggest-ever weekly inflow on AI boom-BofA
▼ + stars: | 2023-06-02 | by ( ) www.reuters.com time to read: +2 min

Stocks in general saw $14.8 billion of inflows, the largest weekly inflow since February. Investors are chasing a "summer rip tide into tech and stocks", BofA analysts wrote in a note, which referred to an AI "baby bubble", though they said they themselves remain bearish due to the impact of higher interest rates causing liquidity to tighten. Cash funds, normally in demand when investors are nervous, also saw inflows of $11.3 billion, their sixth straight week of inflows, while gold funds saw $200 million of outflows, according to BofA. They describe the trade as: "Buy HSI sell AI". Reporting by Alun John; Editing by Amanda Cooper and David HolmesOur Standards: The Thomson Reuters Trust Principles.

Persons: BoFa, Stocks, Cash, BofA, Alun John, Amanda Cooper, David Holmes Organizations: Technology, BofA Global, Tech, Nasdaq, Nvidia, Microsoft, Google, Meta, Hang Seng Tech, Thomson Locations: China

☆ Hong Kong stocks enter bear market territory as China reopening optimism continues to fade
▼ + stars: | 2023-05-31 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Zhang Wei | China News Service | Getty ImagesStock Chart Icon Stock chart iconThe Hang Seng Tech index has already fallen by more than 25% from its January peak. That's a stark contrast to the reopening optimism that had once driven Asia-Pacific's benchmark MSCI Asia Pacific index to a bull market. watch nowMorgan Stanley analysts said in a May 17 report that a weak reading in that manufacturing measure "has been a solid precursor to policy easing." "If growth does not accelerate sufficiently to narrow the output gap, social stability risk may rise and eventually trigger more meaningful stimulus," Morgan Stanley analysts wrote in the note. The index for services activity remained in expansionary territory at 54.5, but marked a second-straight month of decline.

Persons: Zhang Wei, Morgan Stanley Organizations: China News Service, Getty, Hang, Seng China Enterprises, Analysts, China, CNBC, National Bureau, Statistics Locations: Hong, Wan Chai district, Asia, Hong Kong

May 29 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. It could be a double-edged sword for Asian markets, if not on Monday than in the days and weeks ahead. The economy's post-pandemic lockdown recovery has been weaker than expected, to put it mildly, and inflationary pressures are evaporating. Japanese equity markets open on Monday near the 33-year highs reached last week, while Chinese stocks are languishing near six-month lows. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Asia markets slide: Shanghai shares hit 4-month low; Japan, HK post second-straight daily loss
▼ + stars: | 2023-05-24 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Asia-Pacific markets slid Wednesday, with the Shanghai Composite ending down 1.28% at 3,204.75, its lowest level since Jan 13. The Shenzhen Component closed 0.84% lower at 10,920, erasing all its gains this year to sink to lowest since Dec 23 last year. Hong Kong's Hang Seng index posted a second-straight daily loss, closing down 1.77% at 19,087, while the Hang Seng Tech index shed 2.1%. In Australia, the S&P/ASX 200 was down 0.63% at 7,213.8, its lowest closing level since last Wednesday. The country also saw its retail sales volume fall 4.1% year-on-year in the first quarter, the second straight quarterly contraction following a 4% fall in the quarter ended December.

Persons: Kospi Organizations: Shanghai, Shenzhen Component, Hang Seng, Nikkei, Reuters, New, New Zealand, U.S Locations: Asia, Pacific, Japan, Australia, New Zealand

May 16 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. If the April snapshots of retail sales, urban investment and industrial production come in weaker than expected - and consensus forecasts are for solid rebounds from the month before - the China bears and doomsters will be in the ascendancy. Broader market sentiment may be reasonably well supported after Wall Street eked out modest gains on Monday despite alarming slump in a key index of U.S. factory activity and another day of deadlock in the U.S. debt ceiling negotiations. Here are three key developments that could provide more direction to markets on Tuesday:- Australia consumer sentiment (May)- China investment, retail sales, industrial output (April)- Euro zone GDP (Q1, flash estimate)By Jamie McGeever; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Major economic data from China and Japan, and a central bank rate decision from the Philippines could be the main regional drivers for Asian markets this week, with investors growing increasingly nervous about the U.S. and global macro outlook. These were some of the issues discussed at the three-day meeting of G7 finance leaders that concluded on Saturday. The MSCI World index fell 0.5% - not a big deal, perhaps, but the second weekly decline in a row and the steepest since the U.S. banking crisis blow-up two months ago. Japan's first-quarter GDP figures will be released on Wednesday, and perhaps more importantly, the latest inflation numbers are out on Friday. Core inflation is far higher than the Bank of Japan would like and is expected to have re-accelerated to 3.4% in April.

New Governor of Bank of Japan Kazuo Ueda waits for Japanese Prime Minister Fumio Kishida in Tokyo on April 10, 2023. Asia-Pacific markets largely rose on Friday after the Bank of Japan kept its monetary policy unchanged in the first monetary policy meeting chaired by new governor Kazuo Ueda. Japanese markets were all higher and led gains in the region, with the Nikkei 225 closing 1.4% higher at 28,856.44 following the central bank's decision and the Topix rose 1.23% to end the day at 2057,48. Hong Kong's Hang Seng index climbed 0.42% in its final hour, while the Hang Seng Tech index jumped 1.12%. In mainland China, the Shenzhen Component ticked up 1.08% to end at 11,338.67 and the Shanghai Composite rose 1.14% to close at 3,323.27.

☆ US futures bounce but bank worries boost safer bets
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +3 min

Nasdaq futures were up 1.3% and S&P 500 futures up 0.4% following better-than-expected profits at Microsoft (MSFT.O) and a $70 billion stock buyback at Google parent Alphabet (GOOGL.O). Facebook parent Meta Platforms (META.O) reports later in the day, with U.S. markets on edge over softening U.S. data and fresh regional bank jitters. On Tuesday, First Republic Bank (FRC.N) shares were sold to a record low after the bank disclosed a $100 billion plunge in deposits. The S&P 500 (.SPX) and Nasdaq (.IXIC) both fell heavily while bonds rallied sharply and interest rate futures markets priced in a higher chance of Fed cuts later in the year. Two-year Treasury yields dropped 18.7 basis points on Tuesday and were steady at 3.9365% in Asia.

☆ Asia markets mixed as Wall Street banking fears reignite
▼ + stars: | 2023-04-26 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Asia-Pacific markets were trading mixed on Wednesday after banking fears were reignited on Wall Street. Investors were also watching Australia's inflation numbers for the first quarter of 2023, which slowed to 7% year-on-year, down from a 23-year high of 7.8% the previous quarter. In Japan, the Nikkei 225 fell 0.71% to end the day at 28,416.47 , and the Topix dropped 0.89% to finish at 2,023.9. Mainland Chinese markets ended mixed, with the Shenzhen Component up 0.33% to finish at 11,185.68 and the Shanghai Composite closing 0.02% lower at 3,264.1 . Hong Kong's Hang Seng index climbed 0.7% up, while the Hang Seng Tech index rose 1.32%.

☆ Hong Kong falls 2%, leading losses in Asia as investors await Big Tech earnings
▼ + stars: | 2023-04-25 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Hong Kong markets led losses in Asia on Tuesday, with the Hang Seng sliding 1.97% as Asian stocks largely fell ahead of earnings from Big Tech firms. The Hang Seng Tech index saw a larger loss, tumbling 4% as technology stocks led losses on the HSI. Alphabet, Microsoft, Amazon and Meta are among the high-interest names scheduled to announce their results for the first quarter. "Everyone's just waiting for tech earnings," said Chris Harvey, head of equity strategy at Wells Fargo Securities. "This is a very, very busy week for earnings, so we're just treading water."

March 31 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. Q1 world marketsAnother solid performance on Wall Street on Thursday should set the tone for Asian stocks on Friday, with tech again leading the way. U.S. financials was the only S&P 500 sector to fall on Thursday, but they are still up 3% this week, the best week since January. Further indications that China is reversing the sweeping regulatory crackdown on its technology sector of recent years is also adding fuel to the rally. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Alibaba's breakup plan lifts hopes China's tech crackdown is ending
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +4 min

The group's Hong Kong-listed shares jumped as much as 16.3%, tracking a 14.3% rally in its U.S.-listed shares overnight . Its e-commerce rival JD.com Inc (9618.HK) rose 7% and gaming giant Tencent Holdings Ltd (0700.HK) gained 5%. That compared with a 2.3% jump in benchmark Hang Seng Index (.HSI) and a 3.2% gain for the Hang Seng Tech Index (.HSTECH). Brian Tycango, who tracks China's tech sector at Stansberry Research, says that in addition to enabling higher valuations, the restructuring better protects individual divisions from future government regulation. "Any new regulations will likely not affect the whole company now - just the particular division that that regulation covers," Tycango told Reuters.

☆ Alibaba's Hong Kong shares surge 16% on split-up plans
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

March 29 (Reuters) - Hong Kong shares of Alibaba Group (9988.HK) soared on Wednesday, marking a vote of confidence from investors after the company announced a major restructuring plan. Shares of Alibaba's e-commerce rival JD.com Inc (9618.HK) were up 7%, and gaming giant Tencent Holdings Ltd (0700.HK) jumped 5% on Wednesday morning. That compared with a 2.3% jump in benchmark Hang Seng Index (.HSI) and a 3.2% gain for the Hang Seng Tech Index (.HSTECH). One day before the re-organization was announced, Alibaba founder Jack Ma, who had been out of mainland China since late 2021, was spotted visiting a primary school in Hangzhou, the city where Alibaba is headquartered. Reporting by Josh Horwitz in Shanghai and Donny Kwok in Hong Kong; Editing by Muralikumar Anantharaman and Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

March 9 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. Unsurprisingly, Asian markets slumped on Wednesday following the surge in U.S. yields, implied rates and the dollar. MSCI's Asia ex-Japan index fell 1.5%, Hong Kong stocks fell more than 2% and the Hang Seng Tech index fell more than 3%. Bank Negara Malaysia surprised markets in January by keeping its benchmark rate unchanged. The potential for conflict between China and the U.S. appears to be inching up on a near daily basis too.

☆ Hedge funds unimpressed by Chinese internet giants' peppy earnings
▼ + stars: | 2023-02-28 | by ( Summer Zhen | ) www.reuters.com time to read: +4 min

HONG KONG, Feb 28 (Reuters) - A set of bumper earnings reports from the likes of Baidu Inc and other Chinese internet giants isn't impressing hedge funds and other investors who have cut exposure to the stocks and seem to be waiting for more good news. Despite easily beating expectations for their earnings and giving optimistic forecasts for the recovery in demand, shares in both companies fell. Mark Dong, co-founder of Minority Asset Management, who is based in Hong Kong, says expectations for Chinese growth are clouded by doubts over how Beijing plans to stimulate the economy and deal with external risks. The internet sector index (.H11137) nearly doubled between late-October and January but has since fallen 20%. Global hedge funds such as Bridgewater Associates, Tiger Asset Management and Coatue Management are big holders of China internet stocks, which makes the sector more vulnerable to the global economic cycle and geopolitical tensions.

Feb 27 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. A wave of selling is likely to crash over Asian markets on Monday following a sobering end to the week on Wall Street, as the reality of 'higher for longer' U.S. interest rates finally dawns on investors. The implied peak Fed rate is approaching 5.50% - does anyone still think 6% is the stuff of fantasy? One consequence of the market's Fed rethink is the sharp rise in bond yields and the dollar. Many Asian currencies are being pushed back toward their recent lows, boosting inflationary pressures across the region and making dollar-denominated debt servicing more expensive.

☆ Baidu’s ChatGPT-Style Bot Will Be No Magic Bullet
▼ + stars: | 2023-02-22 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

ChatGPT—and its feistier relative, the new Bing—have been lighting up computer screens recently. China’s search giant Baidu hopes its own artificial intelligence-powered chatbot will put the company back on the path to growth. Investors seem to agree: Baidu stock is up 26% so far in 2023, outperforming the Hang Seng Tech index. But it might not be so straightforward: It isn’t still clear how much chatbots will actually enhance existing services such as search, or how costly the rollout will be. Meanwhile, Baidu’s core revenue source—advertising dollars—risks returning to slow growth once the initial bounce from China’s reopening fades.

Consumer price inflation in January is expected to have risen 0.7% on the month and at an annual rate of 2.2%, up from 0.0% and 1.8%, respectively, as the economy picks up following its COVID-19 pandemic paralysis. chartOn its own, economic re-opening will likely accelerate growth and inflation this year. Deteriorating Sino-U.S. relations could encourage some investors and businesses to rethink their exposure to China, potentially affecting Chinese assets and rippling through to others, like European equities and U.S. Treasuries. Risk assets are repricing accordingly. Here are three key developments that could provide more direction to markets on Friday:- China CPI and PPI inflation (January)- Japan goods price inflation (January)- India industrial production (December)By Jamie McGeever; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ Worried about Alibaba’s share price slump? Analysts name 4 alternatives in China tech
▼ + stars: | 2023-02-02 | by ( Zavier Ong | ) www.cnbc.com time to read: +3 min

No Chinese tech stock has generated as much excitement as Alibaba , one of the most recognizable names in the Chinese internet sector. More than 76% of analysts covering the stock rate it a "buy," giving it average upside of 31%, according to FactSet data. Kuaishou is rated buy or overweight by 94% of analysts covering the stock, who give it average upside of around 24.4%. It is rated buy by 88% of analysts covering it, and has average upside of 37.7%, according to FactSet data. Rounding off the list is food delivery giant Meituan , with average upside of 32.5%.

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