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Hong Kong stocks are back from the dead. Here’s why
  + stars: | 2024-04-30 | by ( Laura He | ) edition.cnn.com   time to read: +6 min
Hong Kong CNN —Hong Kong’s benchmark Hang Seng Index surged more than 7% in April as the best-performing major index in the world. The valuation of Hong Kong stocks has also become more “compelling” relative to the rest of the Asian region after the pullback last year, said Zhikai Chen, head of Asian equities at BNP Paribas Asset Management. He added that there is a shift in investors’ sentiments as Chinese economic data turned more positive. Innes said global investors are currently “underweight” in Chinese markets, including Hong Kong, because of geopolitical tensions and concerns surrounding potential fallout from the upcoming US elections. Stock exchange data showed that southbound investors (meaning investment from mainland China into Hong Kong) have bought nearly $20 billion of Hong Kong-listed stocks in March and the first three weeks of April on a net basis.
Persons: , Kelly Chung, Zhikai Chen, Stephen Innes, David Chao, Nomura, Xiaomei Chen, Angelina Lai, Innes, Kong, BNP Paribus Organizations: Hong Kong CNN, Hong, Value Partners, BNP, Management, P Global, PMI, Kong's, Reuters, US, People’s Bank of, HK, Locations: China, Hong Kong, United States, Beijing, India, James’s, People’s Bank of China
Meta stock plunges on ‘aggressive’ AI spending plans
  + stars: | 2024-04-25 | by ( Hanna Ziady | ) edition.cnn.com   time to read: +2 min
London CNN —Shares in Meta plunged in premarket trading Thursday as the Facebook owner’s plans to “invest aggressively” in artificial intelligence spooked investors. The company is competing head-to-head with Microsoft and Google to unlock the enormous potential of AI. Meta (META), which also owns WhatsApp and Instagram, said Wednesday that first-quarter profit more than doubled year-on-year, while revenue was up 27%. Meta said full-year capital expenditure would be in the range of $35-40 billion — up from previous guidance of $30-37 billion — as it continues to accelerate infrastructure investments to support AI. Meta has forecast revenue of $36.5-39 billion, versus analyst expectations of $38.2 billion.
Persons: , ” Sophie Lund, Yates, Hargreaves Lansdown, Meta, Mark Zuckerberg, , Stephen Innes Organizations: London CNN —, Meta, Facebook, Microsoft, Google, , Management
That would mark the biggest share repurchase by a Chinese tech company in the past year. The tech giant’s move comes at a time when Chinese regulators have been asking listed companies to repurchase shares to stabilize market confidence. Overall, companies listed in Hong Kong spent 126 billion Hong Kong dollars ($16.1 billion) buying back shares in 2023, the highest on record, according to Chinese financial data provider Choice. Tencent alone accounted for about 40% of total share buybacks in the Hong Kong market. Additionally, the global selling of Chinese assets, driven by geopolitical tensions or concerns about regulatory uncertainties, has further pressured Chinese share prices.
Persons: Alibaba, , , Stephen Innes, Tencent, Xiaomi, ” Innes Organizations: Hong Kong CNN, Alibaba, BABA, Hong Kong, CNN, Locations: China, Hong Kong, buybacks, Shanghai, Shenzhen, Hangzhou, Beijing
Japan’s Nikkei 225 index jumped above 40,000 for the first time on Monday, extending a historic rally that analysts say has just begun. The milestone comes just days after it had set a record closing high of 39,098.68, eclipsing its previous 1989 peak. Optimism regarding semiconductors boosted Taiwan’s stock market as well, with benchmark Taiex hitting an all-time high on Monday, led by Taiwan Semiconductor Manufacturing Company. Premier Li Qiang is set to announce China’s 2024 growth target on Tuesday and is also likely to unveil more stimulus measures to revive the sagging economy. Analysts widely expect the policymakers to set this year’s growth target at around 5%.
Persons: , Jefferies, , chipmaker, Kospi, Hong, Li Qiang, Stephen Innes Organizations: Hong Kong CNN —, Nikkei, Nasdaq, Taiwan Semiconductor Manufacturing Company, Nvidia, Investors, National People’s Congress, NPC, Communist Party’s Politburo Locations: Hong Kong, Japan, Beijing, Shanghai, China
Hong Kong/New Delhi CNN —Japan’s stock market defied gloomy economic data to rally Friday, lifting broader Asian shares and ending the week on a buoyant note. Japan’s benchmark Nikkei 225 index closed above 38,000 points for the second day in a row, just a whisker off its historic peak reached in December 1989. “If anything, the window of opportunity created by the weak yen is encouraging international investors, as they suspect it will close soon,” he added. The MSCI’s broadest index of Asian shares excluding Japan closed more than 1% higher. On Wall Street, the S&P 500 closed at a record high of 5,029.73 Thursday as US stocks bounced back from steep losses earlier this week.
Persons: , Neil Newman, Stephen Innes, Austan Goolsbee, Innes, Korea’s Organizations: Hong Kong / New Delhi CNN, Analysts, Japan, Dow, Nasdaq, Federal Reserve, Fed, Chicago Fed Locations: Hong Kong / New Delhi, Tokyo, United Kingdom, Asia, Pacific, New York, China
BANGKOK (AP) — Asian shares were mixed on Monday, with most regional markets closed for holidays, while U.S. futures edged lower after the S&P 500 ended last week above 5,000. Thailand's SET was up 0.1% and in Jakarta, the benchmark gained 0.6% ahead of an election to be held on Wednesday. With mainland Chinese markets closed for the week for the Lunar New Year, there was a dearth of market moving news. Photos You Should See View All 21 ImagesOn Friday, the S&P 500 rose 0.6%, finishing above 5,000 for the first time, at 5,026.61. Nvidia, Microsoft and Amazon were the three strongest forces lifting the S&P 500 after each rose by at least 1.6%.
Persons: Australia's, SET, ” Stephen Innes, Wall, they’ve, Cloudflare, it’s, Brent Organizations: Federal Reserve, Management, Nasdaq, Dow Jones, Big Tech, Nvidia, Microsoft, Amazon, Bank of America, New York Mercantile Exchange, U.S Locations: BANGKOK, India, Jakarta, United States, Japan, U.S
BANGKOK (AP) — Asian shares were mixed on Tuesday, with Hong Kong and Shanghai leading declines, ahead of a decision by the Federal Reserve this week on interest rates. But shares in China Evergrande New Energy Vehicle Group gained 7% as they resumed trading after they also were suspended on Monday. Other property companies led the decline in Hong Kong, where the benchmark Hang Seng index sank 2.4% to 15,694.69. Political Cartoons View All 253 ImagesTechnology companies also retreated, with food delivery company Meituan down 2.8% and e-commerce giant Alibaba falling 1.9%. On Monday, U.S. stocks gained as they kicked off a week where Wall Street’s most influential stocks may show whether the huge expectations built up for them are justified.
Persons: ” Stephen Innes, Australia's, Archer Daniels, Brent Organizations: Federal Reserve, China Evergrande Group, Energy Vehicle Group, Evergrande, Services, Sunac China Holdings, F, Technology, Management, Nikkei, Dow Jones, Nasdaq, Big Tech, Microsoft, Traders, Fed, Archer Daniels Midland, Amazon, New York Mercantile Exchange, U.S Locations: BANGKOK, Hong Kong, Shanghai, China, Guangzhou, Asia, South Korea, U.S, Wall, iRobot
BANGKOK (AP) — China’s leaders launched a barrage of new policies this week to prop up languishing financial markets and rekindle growth in the world’s second-largest economy. The moves to support lending and spending with billions of dollars of fresh cash gathered pace when the central bank cut bank reserve requirements and issued new rules to encourage banks to lend more to property companies. HOW IS THE CHINESE ECONOMY DOING? The Chinese economy grew at a 5.2% annual pace in 2023, exceeding the government's target, and many indicators including factory output and retail sales show signs of improvement. The moves to put more money into the economy and encourage bank lending might not go far enough, many analysts said.
Persons: , Premier Li Qiang, , It's, Pan Gongsheng, ” Stephen Innes Organizations: State Council, Economic, People's Bank of China Gov, Management Locations: BANGKOK, United States, China, Premier, Davos, Switzerland, Hong Kong, Beijing
The Shenzhen Component Index, a tech-heavy benchmark, had its worst day in nearly two years, plunging 3.5%. It’s the worst start to a year for Chinese stocks since 2016, when investors were ditching their holdings following a market crash in 2015. The country’s economy grew by 5.2% last year. That beat government projections but is still one of China’s worst economic performances in over three decades. The International Monetary Fund forecasts the country’s economic growth to slow to 4.2% this year.
Persons: Ken Cheung, , Europe’s, Premier Li Qiang, Brian Martin, Daniel Hynes, Li, , ” Stephen Innes, managing Organizations: Hong Kong CNN, Shenzhen Component, Mizuho Bank, CSI, Nikkei, Premier, Economic, ANZ Research, Monetary Fund, China’s Commerce Ministry, Investors Locations: Hong Kong, Beijing, Shanghai, Shenzhen, China, United States
TOKYO (AP) — Asian shares were trading mostly lower on Wednesday after a decline overnight on Wall Street, while Tokyo's main benchmark momentarily hit another 30-year high. S&P 500 futures fell 0.5% to 4,775.25. Companies across the S&P 500 are likely to report meager growth in profits for the fourth quarter from a year earlier, if any, if Wall Street analysts' forecasts are to be believed. But optimism is higher for 2024, where analysts are forecasting a strong 11.8% growth in earnings per share for S&P 500 companies, according to FactSet. The index remains within 0.6% of its all-time high set two years agoFor now, traders are penciling in many more cuts to rates through 2024 than the Fed itself has indicated.
Persons: Australia's, Korea's Kospi, Stephen Innes, Brent, Stan Choe, Yuri Kageyama Organizations: TOKYO, Dow, Nikkei, Companies, Wall, Federal Reserve, Fed, U.S, AP Locations: Hong, Shanghai, New York
TOKYO (AP) — Asian shares were mixed Monday as investors awaited a slew of U.S. economic data set for release later in the week. Hong Kong's Hang Seng lost 0.5% to 16,749.07, while the Shanghai Composite edged 0.2% lower to 3,026.43. Among the economic updates due this week are data on the job market, including the U.S. government’s closely watched monthly employment report for November. “Traders prepare for a slew of actionable U.S. economic data scheduled for release this week, poised to be crucial in refining traders’ expectations regarding Federal Reserve policy. Political Cartoons View All 1277 ImagesInflation data are also expected this week for several nations in Asia, including Japan, Thailand and the Philippines.
Persons: Australia's, Hang Seng, government’s, , Stephen Innes, Russell, Brent Organizations: TOKYO, Nikkei, China Evergrande's Hong Kong, U.S, “ Traders, Federal Reserve, Wall, Dow Jones, Nasdaq, New York Stock Exchange, U.S . Federal, Treasury, Investors, New York Mercantile Exchange, U.S . Locations: Hong, Shanghai, China Evergrande's Hong, Hong Kong, Asia, Japan, Thailand, Philippines, U.S
TOKYO (AP) — Asian shares were mostly higher Tuesday ahead of potentially market-moving developments, including a U.S.-China summit and data releases from the U.S., Japan and China. “Asian stocks gained ground as investors awaited U.S. inflation figures, hoping to confirm that interest rates have peaked. But worries remain about whether it can stay solid as the full effects of rate hikes make their way through the system. Economists expect the report to show that consumers paid prices that were 3.3% higher in October than a year earlier, down from September’s inflation rate of 3.7%. General worries about big deficits and the inability of the two parties to work together have helped push Treasury yields higher.
Persons: Australia's, Seng, ” Stephen Innes, Xi Jinping, Joe Biden, Jerome Powell, Powell, It's, it's, Moody’s, Brent Organizations: TOKYO, Nikkei, U.S, Management, Dow Jones Industrial, Nasdaq, Walmart, Federal Reserve, Big Tech, Apple, Microsoft, AAA, New York Mercantile Exchange Locations: U.S, China, Japan, Hong, Shanghai, California
TOKYO (AP) — Asian shares were mostly higher Thursday after the U.S. Federal Reserve indicated it may not need to pump the brakes any harder on Wall Street and the economy. Longer-term Treasury yields have in turn been rising rapidly, with the 10-year Treasury yield topping 5% last month to reach its highest level since 2007. He also said the Fed is not considering cuts to interest rates, which can act like steroids for financial markets. On Wall Street, the S&P 500 rose 1.1% to 4,237.86 and the Dow Jones Industrial Average gained 0.7% to 33,274.58. Big Tech stocks were winners Wednesday, along with other high-growth stocks typically seen as the biggest beneficiaries of easier interest rates.
Persons: Australia's, Korea's Kospi, Seng, It’s, ” Stephen Innes, Fumio Kishida, Stocks, Jerome Powell, Powell, ” Powell, Powell’s, Yung, Yu Ma, , Ma, Brent Organizations: TOKYO, U.S . Federal, Nikkei, Federal Reserve, Management, Fed, Treasury, BMO Wealth Management, Dow Jones Industrial, Nasdaq, Big Tech, U.S Locations: Hong, Shanghai, Japan
BANGKOK (AP) — World shares were mixed Wednesday after China pledged more spending to energize its economy. U.S. futures were mixed and oil prices turned higher. In early European trading, Germany's DAX fell 0.4% to 14,825.07 and the CAC 40 in Paris lost 0.5% to 6,864.02. A solid job market and spending by U.S. households has helped keep the economy chugging along. In the oil market, prices have dipped, taking some more pressure off inflation.
Persons: Zhu Zhongming, ” Stephen Innes, Hong, Germany's DAX, Kospi, India's Sensex, they've, they’re, Brent, it's Organizations: China, Xinhua, Agency, Management, CAC, Dow Jones, Dow, Nasdaq, Japan's Nikkei, Sydney, Stock, Treasury, Fed, U.S Locations: BANGKOK, Paris, Frankfurt, Sydney, Seoul, London, Tokyo, Hong Kong . U.S, China, Shanghai, Bangkok, U.S, Israel, Iran
U.S. futures rose while oil prices fell back. A barrel of benchmark U.S. oil fell 97 cents to $87.11 per barrel. Chinese stocks fell to a 1-year low early Monday as foreign investors sold off holdings. High yields make borrowing more expensive for everyone, and they slow the economy while dragging on prices for stocks and other investments. But higher oil prices threaten to add upward pressure.
Persons: Brent, Taiwan’s Taiex, Fumio, Australia’s, ” Stephen Innes, It’s Organizations: Israel, Foxconn Technology, Fortune, Apple, Nikkei, Dow, Nasdaq, Treasury, Management, Federal, Fed, Enphase Energy, Regions Financial, U.S Locations: HONG KONG, Gaza, Gaza City, Israel, Shanghai, Hong, Taiwan, Seoul, Europe, U.S
HONG KONG (AP) — China’s economy slowed in the third quarter, amid muted global demand, deflationary pressures and an ailing property sector. The world’s second-largest economy grew 4.9% year-over-year in the July-September quarter, beating the 4.5% forecast by analysts but slowing from the 6.3% growth in the previous quarter, according to official data released Wednesday. On a quarterly basis, the economy grew by 1.3% in the third quarter, compared to 0.8% growth in the April-to-June quarter. For the first nine months of the year, China's economy grew 5.2% compared to the same period last year, suggesting it is on track with Beijing's target of about 5% growth for 2023. Political Cartoons View All 1211 ImagesStephen Innes, managing partner at SPI Asset Management, said that although the numbers beat expectations China's economy is “not out of the woods by any means.”“This growth suggests a modest improvement in the Chinese economy.
Persons: Stephen Innes, ” Innes Organizations: National Bureau, Statistics, Management, Analysts Locations: HONG KONG, Beijing, China
Oil prices gain as concerns mount over Middle East tensions
  + stars: | 2023-10-16 | by ( Laura He | ) edition.cnn.com   time to read: +2 min
Hong Kong CNN —Oil prices rose above $91 a barrel on Monday as diplomatic efforts to address the crisis in the Middle East intensified. The “Middle East risk” is dominating the landscape for global asset prices, said Stephen Innes, managing partner for SPI Asset Management. “The ongoing conflict could weigh even further on the global oil supply over time by potentially reducing the probability of Saudi-Israeli normalization and posing downside risks to Iranian oil production, leading to a further surge in oil prices,” he said. Global oil prices had increased for months as production cuts by Saudi Arabia and Russia fueled worries about reduced global supply. New US measures, unveiled last week, aimed at raising the cost of Russia’s attempts to skirt a cap on the price of its oil might have also driven oil prices higher.
Persons: Jake Sullivan, , Stephen Innes Organizations: Hong Kong CNN, Investors, Brent, Texas Intermediate, CBS Sunday, US National, ANZ Research, Hamas Locations: Hong Kong, Middle, Israel, Gaza, Iran, Saudi, Saudi Arabia, Russia, Israel’s
BANGKOK (AP) — Share prices were mixed on Monday after the Israeli government declared war following deadly attacks by Hamas from the Gaza Strip. U.S. futures were lower and oil prices gained more than $3 a barrel. Conflict in the Middle East often raises the specter of higher oil prices given the risk of disruptions to supplies. Wall Street hates high interest rates because they knock down prices for all kinds of investments. It means the economy is still doing well despite high rates, which could support corporate profits.
Persons: ” Stephen Innes, Brent, India's Sensex, SET, Lloyd Austin, GM, JPMorgan Chase Organizations: Management, New York Mercantile Exchange, Shanghai, U.S . Defense, Ford, Wall Street, Federal Reserve, Dow, Nasdaq, Treasury, Fed, Workers, General Motors, United Auto Workers, Detroit’s, Delta Air Lines, JPMorgan, UnitedHealth Group Locations: BANGKOK, Gaza, Tokyo, Australia, Hong, Palestinian, Israel
BANGKOK (AP) — Crude oil prices surged and share prices were mostly lower on Monday after the Israeli government declared war following deadly attacks by Hamas from the Gaza Strip. Oil prices fell back slightly after gaining more than $3 a barrel. Conflict in the Middle East often pushes oil prices higher given the risk of disruptions to supplies. Wall Street hates high interest rates because they hurt prices for all kinds of investments. It means the economy is still doing well despite high rates, which could support corporate profits.
Persons: ” Stephen Innes, Brent, Germany's DAX, Australia's, India's Sensex, Lloyd Austin, GM, JPMorgan Chase, Jon Gambrell Organizations: Management, New York Mercantile Exchange, Israel’s, Bank, U.S ., CAC, Dow, U.S . Defense, Ford, Wall Street, Federal Reserve, Nasdaq, Fed, General Motors, United Auto Workers, Detroit’s, Delta Air Lines, JPMorgan, UnitedHealth Group Locations: BANGKOK, Gaza, Tel, Paris, London, Shanghai, Hong Kong, Bangkok, Tokyo, Palestinian, Israel, Jerusalem
New York/Hong Kong CNN —Oil prices surged and US stock futures fell on Sunday night in their first reaction to Israel’s war with Hamas. Although Israel is not a major oil producer, escalating tensions in the oil-rich Middle East spooked investors who have already been selling off oil in recent weeks. But on Sunday night, US oil prices surged 4% higher above $86 a barrel. In the equity markets, US stock futures, which surged Friday on a surprisingly strong American job market report, fell sharply Sunday night. Global investors fear prolonged tensions in the Middle East could hurt the fragile global economic recovery.
Persons: Brent, Stephen Innes, , Israel, Australia’s Organizations: Hong Kong CNN, Management, Dow, Nasdaq, Shanghai Locations: New York, Hong Kong, Israel, East, Asia, China, Shenzhen, Japan, South Korea
Hong Kong CNN —Stocks in Hong Kong suffered their worst day in three months on Tuesday on growing concern about China’s weak housing market and persistently high US interest rates. Real estate stocks were once again among the heaviest losers in Hong Kong. Country Garden, one of the country’s largest property developers, sank 4.4%. Market sentiment was also weighed down by concerns that US interest rates could stay elevated after US Treasury yields hit a 16-year high. Yields on the 10-year US Treasury, which are considered a proxy for US interest rates, reached 4.7% on Monday, the highest since 2007.
Persons: Xu Jiayin, Nomura, , JPMorgan Chase, Jamie Dimon, , Stephen Innes Organizations: Hong Kong CNN —, Energy Vehicle, Evergrande, Estate Information Corporation, Treasury, JPMorgan, Reserve, Federal, Nikkei Locations: Hong Kong, Beijing, Washington, Real, Shanghai, China, Asia
TOKYO (AP) — Shares in Asia were mostly higher on Wednesday, shrugging off a sharp decline on Wall Street that took benchmarks back to where they were in June. That pushed the Fed last week to say it will likely cut interest rates by less next year than earlier expected. Besides high interest rates, a long list of other worries is also tugging at Wall Street. On Wall Street, the vast majority of stocks fell Tuesday under such pressures, including 90% of those within the S&P 500. Big Tech stocks tend to be among the hardest hit by high rates, and they were the heaviest weights on the index.
Persons: shrugging, Hui Ka Yan, Australia's, ” Stephen Innes, Brent Organizations: TOKYO, Tokyo's Nikkei, Hang Seng, Bloomberg, Garden Holdings, Dow Jones, Nasdaq, Federal Reserve, Treasury, Fed, U.S, Management, Big Tech, Apple, Microsoft, Federal Trade Commission Locations: Asia, Hong Kong, Shanghai, China, Seoul, Maryland, Carolinas
Hong Kong CNN —Evergrande Group has just missed another bond payment, casting further doubt over the future of the embattled property developer at the epicenter of China’s real estate crisis. China’s property industry once accounted for as much as 30% of the country’s gross domestic product. Questions about financial stabilityConcerns over China’s economic stability have resurfaced, driven by the deepening financial crisis at Evergrande, said Stephen Innes, managing partner of SPI Asset Management. On Sunday, Evergrande surprised investors with an announcement that it was unable to issue new notes due to the investigation into Hengda. It was the first criminal probe launched against Evergrande since it was hit by the debt crisis nearly two years ago.
Persons: Evergrande, Tao Wang, Stephen Innes, , Innes, Mengchen Zhang, Marc Stewart Organizations: Hong Kong CNN — Evergrande, Shenzhen Stock Exchange, Getty, China, Asia Economics, UBS, CNN, Evergrande Locations: China, Hong Kong, AFP, Asia, Evergrande
Stocks fell Wednesday in Asia after a slide in technology stocks dragged Wall Street lower ahead of a key report on U.S. inflation. Stocks have been see-sawing in recent weeks amid the revived uncertainty about whether the Federal Reserve is done with its avalanche of hikes to interest rates. High interest rates work to undercut inflation by slowing anentire economy and knocking down prices for stocks and other investments. Still, traders overwhelmingly expect next week’s meeting for the Federal Reserve to end with interest rates staying where they are. But it’s been struggling since the end of July and has reported three straight quarters where its revenue fell from year-earlier levels.
Persons: Stocks, Hang Seng, Australia's, Stephen Innes, , it’s Organizations: Nikkei, U.S, Federal, Federal Reserve, Management, Dow Jones, Nasdaq, Software, Oracle, Apple, Google, Microsoft, New York Mercantile Exchange, Brent Locations: Asia, Shanghai, Seoul, India, Taiwan, Southeast Asia, U.S
Stock prices were mostly higher in Asia on Monday as investors awaited an update on U.S. inflation and China’s latest economic data. The futures for the S&P 500 and Dow were trading higher. That could lead the Federal Reserve and other central banks to keep interest rates higher for longer, which would hurt prices for shares and other investments. On Friday, stocks edged higher on Wall Street, but markets still ended their first losing week in the last three. High interest rates are supposed to slow the economy and hurt the job market, which should ultimately help undercut inflation.
Persons: Zichun Huang, Hong, Hang Seng, Australia's, Kroger, ” Stephen Innes, Brent, Kazuo Ueda Organizations: Dow, Federal Reserve, Economics, Nikkei, U.S, Labor, Dow Jones, Nasdaq, Albertsons, Treasury, Management, New York Mercantile Exchange, Bank of Japan Gov Locations: Asia, Hong Kong, Tokyo, Shanghai, Sydney, Seoul, China
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