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☆ Asian stocks mixed as caution reigns ahead of U.S. midterms
▼ + stars: | 2022-11-08 | by ( Kane Wu | ) www.reuters.com time to read: +3 min

MSCI's gauge of Asia Pacific stocks outside Japan (.MIAPJ0000PUS) narrowed gains to rise 0.12% at 0517 GMT. "The thing to watch ... will be the U.S. midterms today and the CPI data tomorrow," said Redmond Wong, Saxo Markets' market strategist for Greater China, in a note on Tuesday. Japan's Nikkei 225 (.N225) gained as much as 1.44%, hitting an eight-week high, as investors scooped up chips and other technology stocks. Analysts said U.S. mid-term elections on Tuesday could impact markets. Brent crude fell 0.32% to $97.61 a barrel by 0526 GMT, while U.S. crude fell 0.38% to $91.44 a barrel.

These same funds averaged a 0.58% decline in 2021, according to the HSBC data seen by Reuters. HSBC follows eight funds which take long and short positions in Chinese equities. This year, three hit HSBC's global list of the bottom 20 hedge fund performances for the week ending Nov. 4. Net selling of Chinese equities by international active funds totalled around $30 billion over the past year and global hedge fund allocations in Chinese equities have declined from 15% at the 2020 peak to 8% now, Goldman Sachs estimates. HFR, another company which tracks hedge fund performance but does not disclose the constituents of its indices, said its index of Chinese hedge funds was down 27% so far this year.

☆ Goldman Sachs says China is still 'months away' from reopening
▼ + stars: | 2022-11-07 | by ( Jihye Lee | ) www.cnbc.com time to read: +2 min

Thomas Peter | ReutersStocks in Hong Kong and China rallied at the end of a volatile week last week, driven by speculation that Beijing could soon ease its Covid-zero policy — but economists at Goldman Sachs say China may still be "months away" from reopening. We estimate that a full reopening could drive 20% upside for Chinese stocks... Goldman Sachs"The actual reopening is still months away as elderly vaccination rates remain low and case fatality rates appear high among those unvaccinated based on Hong Kong official data," Goldman Sachs economists led by Hui Shan said in a Sunday note. China stocks may jump 20% at reopeningGoldman maintains its view that China could reopen in the second quarter of 2023. The latest Hong Kong government statistics show only 60.81% of people aged 80 and older have received all three doses. "A safe and orderly reopening is very difficult right now," the Goldman Sachs note said.

☆ Why Apple raised the price of the iPhone, but not in the U.S. and China
▼ + stars: | 2022-11-05 | by ( Ian Thomas | ) www.cnbc.com time to read: +5 min

Apple 's newest iPhones, the series 14 models, come with better displays, cameras, and satellite messaging, among other features and updates. For example, the base iPhone 14 model starts at $799 in the U.S., the same price that the company charged for the iPhone 13 at its release last year. In the U.K., the base iPhone 14 costs £849, or roughly $975. For example, the iPhone 14 Pro Max in the U.K. is £150 more expensive than the equivalent last year's model. The reason Apple took the step to increase the price of phones in those markets has to do with currency fluctuations.

☆ OCBC profit surges 31% in record quarter for Singapore banks
▼ + stars: | 2022-11-04 | by ( Anshuman Daga | ) www.reuters.com time to read: +2 min

"Net interest income grew on higher net interest margin and loan growth was sustained," Group CEO Helen Wong said in a statement, adding that asset quality was healthy, with no indication of systemic stress. OCBC's net profit increased to S$1.6 billion ($1.13 billion) in July-September versus the S$1.55 billion average estimate from four analysts, according to Refinitiv data. On Thursday, OCBC's larger peer DBS Group (DBSM.SI) reported a forecast-beating 32% jump in quarterly profit to a record high while UOB Group (UOBH.SI) also posted a record quarterly profit. The bank's net interest margin, a key gauge of profitability, increased 54 basis points to 2.06% in the quarter. ($1 = 1.4214 Singapore dollars)Reporting by Anshuman Daga; Editing by Christopher Cushing and Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

☆ Marriot shares slide on delayed opening of some properties in China
▼ + stars: | 2022-11-03 | by ( Priyamvada C | ) www.reuters.com time to read: +2 min

"The market in China is most certainly where we're seeing the most challenges," Chief Executive Anthony Capuano said during an analyst call. Revenue per available room (RevPAR) from Greater China was $64.06 in 2021 company-wide, behind U.S. & Canada and Middle East & Africa. "Looking forward we expect that the recession will mute, but not derail, growth in the U.S. hotel industry. Marriott now expects 2022 adjusted profit per share of between $6.51 and $6.58, compared with its previous forecast of $6.33 to $6.59 per share. Adjusted profit per share was $1.69, one cent above expectations.

☆ Singapore bank OCBC's Q3 profit surges to record on rates
▼ + stars: | 2022-11-03 | by ( Anshuman Daga | ) www.reuters.com time to read: +1 min

The results rounded up a strong showing by Singapore banks after larger peer DBS Group (DBSM.SI) reported a forecast-beating 32% jump in quarterly profit to a record high and UOB Group (UOBH.SI) also posted a record quarterly profit. Singapore banks, which boast one of the strongest capital buffers in the world, have effectively weathered the COVID-19-induced slump and are now benefiting from rebounding Asian economies. Singapore-based OCBC's net profit increased to S$1.6 billion ($1.13 billion) in July-September versus the S$1.55 billion average estimate from four analysts, according to Refinitiv data. "Net interest income grew on higher net interest margin and loan growth was sustained," Group Chief Executive Helen Wong said in a statement on Friday. The bank's net interest margin, a key gauge of profitability, increased 54 basis points to 2.06% in the quarter.

[1/2] U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. The Australian and Canadian central banks both raised rates by less than expected at their October meetings, and markets read a dovish tone in last week's European Central Bank 75 basis point hike. The euro barely reacted after data released on Monday that showed eurozone inflation came in hotter than expected at 10.7%, a fresh record high. Elsewhere, the Chinese yuan slumped after data released on Monday showed China's factory activity unexpectedly fell in October, weighed down by softening global demand and strict domestic COVID-19 curbs. The U.S. dollar climbed 2% on Brazil's Real after former president Luiz Inacio Lula da Silva narrowly defeated President Jair Bolsonaro in a run-off election.

☆ Asia bond funds dump China in favour of cash after high-yield rout
▼ + stars: | 2022-10-31 | by ( Summer Zhen | ) www.reuters.com time to read: +4 min

Many holders of China high yield bonds have seen them trading below 20 cents on the dollar. The in-default bonds of property company Sunac China (1918.HK) maturing in 2025 trade at 6 cents to a dollar. The average return of the top 10 Asia high yield bonds is down more than 30% this year, Morningstar data shows, of which Fidelity Funds' Asian High Yield Fund and UBS's SICAV - Asian High Yield (USD) had shed more than 40% as of Oct. 27. Value Partners’ Greater China High Yield Income Fund was down 37% as of the end of September. While there are select bonds that have upside, China high yield as an asset class is currently “uninvestable", she said.

[1/2] U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. However, late last week this narrative ran out of steam, and it continued to struggle on Monday. The Fed is expected to deliver another 75 basis point (bp) rate hike after the conclusion of the FOMC meeting on Wednesday. ECB governing council member Klaas Knot said on Sunday the central bank's next move in December is likely to be between 50 and 75 bps. The dollar was last 0.68% higher against the yuan traded offshore at 7.31.

☆ Dollar steadies as Fed looms; yen fragile
▼ + stars: | 2022-10-31 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

The greenback moved broadly higher in Asia trade, particularly against the Japanese yen , rising more than 0.5% and pushing above the 148 yen level. Data on Friday showed that U.S. consumer spending rose more than expected in September, while underlying inflation pressures continued to bubble. The Fed is expected to deliver another 75 basis point (bp) rate hike after the conclusion of the FOMC meeting on Wednesday. Ahead of another central bank decision this week, the Australian dollar rose 0.1% to $0.6418. The offshore yuan was last down 0.4% at 7.2990 per dollar.

☆ Apple defies the Big Tech meltdown and remains the stock to own, not trade
▼ + stars: | 2022-10-27 | by ( Jim Cramer | ) www.cnbc.com time to read: +14 min

Revenue rose 8% year-over-year to $90.1 billion, exceeding expectations of $88.9 billion and marking a September quarter record. Despite growing fears of a recession and a strong U.S. dollar that dents international sales, Apple sales posted a September quarter record for the Americas, Europe, Greater China and the rest of Asia-Pacific. Companywide results Operating cash flow of $24.13 billion was in line with expectations of $24.24 billion and marked a September quarter record. Revenue rose 8% year-over-year to $90.1 billion, exceeding expectations of $88.9 billion and marking a September quarter record. Despite growing fears of a recession and a strong U.S. dollar that dents international sales, Apple sales posted a September quarter record for the Americas, Europe, Greater China and the rest of Asia-Pacific.

[1/2] People buy food at stalls promoting China's digital yuan, or e-CNY, during the 2022 China International Fair for Trade in Services (CIFTIS) in Beijing, China September 1, 2022. REUTERS/Tingshu WangHONG KONG/SHANGHAI, Oct 27 (Reuters) - China's digital yuan took the centre stage in the world's largest cross-border central bank digital currency (CBDC) trial to date, a report showed, pointing to how Beijing is speeding up yuan globalization efforts amid rising geopolitical tensions. China's digital currency, or e-CNY, was the most issued, and actively transacted token in the $22 million pilot that used CBDCs to settle cross-border trades, a Bank of International Settlement (BIS) report showed. The PBOC's participation in m-Bridge represents its ambition to eventually promote global, wholesale use of the e-CNY. But China's yuan internationalisation, digital or not, faces challenges amid a slowing economy ravaged by COVID flare-ups, and a property debt crisis.

☆ Hong Kong home prices drop 2.1% in Sept, down 8% this year
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Oct 27 (Reuters) - Hong Kong private home prices fell 2.1% in September from a month earlier to the lowest since January 2019, official data showed on Thursday, dragged down by rising interest rates and a pessimistic economic outlook. The drop in home prices last month in one of the world's most unaffordable housing markets followed a revised 1.9% fall in August. Home prices in the financial hub have fallen 8.1% in the first nine months of this year. Hong Kong banks raised their best lending rate by 12.5 basis points last month, the first rate hike in four years. Rising mortgage costs and a bleak economic outlook have deepened pessimism among homeowners, while home prices for the full-year are expected to drop around 10%, the first fall since 2008.

☆ Tapestry deepens push into China, undeterred by luxury market slump
▼ + stars: | 2022-10-25 | by ( Casey Hall | ) www.reuters.com time to read: +6 min

It also follows some 60 Tapestry store openings in China over the last two years. Research from real estate firm Savills also shows 55% of the world's luxury store openings last year took place in China. It saw China sales slide 32% for the quarter ended July 2 from the same period a year earlier. China sales generally account for around a fifth of its overall sales. Coach's luxury market share in China is also more than double that of Michael Kors and more than triple that of Ralph Lauren and Tory Burch, according to Euromonitor data.

REUTERS/Tingshu WangSummary Sept new home prices fall 0.2% m/m, down for second monthNew home prices down 1.5% y/y, fastest pace since Aug 201554 cities out of 70 report price declinesBEIJING, Oct 24 (Reuters) - China's September new home prices fell for the second straight month as mortgage boycotts, a heightened debt crisis and COVID-19 curbs weighed on homebuyers' sentiment. China's property sector has been beset by multiple headwinds after regulators clamped down on excessive borrowing since mid-2020. In monthly terms, new home prices in tier-two cities fell 0.2% and declined 0.4% in tier-three cities. Property investment fell 12.1% from a year earlier, slightly narrowing from a 13.8% fall in August. "There is little room to give more help to real estate property developers as doing so will risk the credibility of government reform (for property developers, that means the deleveraging reform)," said Iris Pang, chief economist for Greater China at ING.

FRANKFURT, Oct 20 (Reuters) - German sporting goods maker Adidas (ADSGn.DE) on Thursday cut its full-year guidance, citing weaker expectations for China, lower demand in major Western markets and one-off expenses related to its exit from the Russian market. The new outlook reflects one-off costs of around 500 million euros ($490 million) on its net income in 2022, Adidas added, saying these expenses were largely due to the company's decision to initiate the wind-down of its Russian business. Adidas's third-quarter sales increased 11% to 6.4 billion euros, but its net income for the full year is expected to reach 500 million euros, compared with its previous estimate of 1.3 billion euros. Currency-neutral sales in Greater China declined by a double-digit percentage due to continuing COVID-related restrictions, as well as significant inventory takebacks, the company said. With measures in place to protect the company's profitability, Adidas expects to generate a positive profit contribution of around 200 million euros in 2023.

☆ New Gucci head in China to lay out strategy soon to revive sales
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: 1 min

PARIS, Oct 20 (Reuters) - Gucci's new chief in China will lay out his strategy to revive the label's sales in the key Asian market in the next few weeks, the finance chief of parent company Kering said on Thursday. Gucci sales in China were negative in the third quarter, Kering said, without giving a precise figure. Gucci announced the appointment of Laurent Cathala, previously a top executive at U.S. jeweller Tiffany & Co for emerging markets, as its new president of Greater China fashion business in April. Register now for FREE unlimited access to Reuters.com RegisterReporting by Silvia Aloisi, editing by Mimosa SpencerOur Standards: The Thomson Reuters Trust Principles.

☆ Hermes eyes big price rises, says no sign of slowdown
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

The logo of Hermes is seen on a store in Paris, France, April 24, 2020. "We will probably have price hikes between 5 and 10 percent," Hermes executive vice president of finance Eric du Halgouet told reporters on Thursday, adding this was due to rising labour costs and currency fluctuations. Register now for FREE unlimited access to Reuters.com RegisterThe company raised prices by around 4% this year and by 1.5-2% on average in previous years. "Sales in Greater China picked up strongly, despite temporary closures due to sanitary measures mainly in Macau, Chengdu and Dalian in July and August," the company said in a statement. ($1 = 1.0222 euros)Register now for FREE unlimited access to Reuters.com RegisterReporting by Mimosa Spencer, editing by Silvia AloisiOur Standards: The Thomson Reuters Trust Principles.

☆ China delayed the release of key economic data to avoid distraction amid the Communist Party Congress, not to conceal data, analysts say
▼ + stars: | 2022-10-18 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

China delayed the release of key economic data, including third-quarter GDP, scheduled for this week. The postponement of the data — GDP in particular — has raised speculation that the numbers are deliberately being hidden. "Beijing just wants everyone and the media coverage to focus on the Congress, not on economic data." While delays in monthly statistical data release are indeed "quite unusual," they are not unprecedented, according to Zhuang. However, it's the first time Beijing is delaying GDP data release.

☆ China c.bank rolls over policy loans for liquidity, keeps rate unchanged
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +3 min

SHANGHAI, Oct 17 (Reuters) - China's central bank rolled over maturing medium-term policy loans while keeping the interest rate unchanged for a second month on Monday, largely in line with market expectations. The People's Bank of China (PBOC) said it was keeping the rate on 500 billion yuan ($69.55 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.75% from the previous operation. Previously, the PBOC drained a net 200 billion yuan each in August and September. In a poll of 27 market watchers conducted last week, all respondents forecast no change to the MLF rate, with the vast majority of them expecting a partial rollover. The MLF rate serves as a guide to the loan prime rate (LPR), which is scheduled for release on Thursday.

“My forecast is for a further decline of 1.2% [on a quarterly basis for China’s GDP]. China’s GDP declined 2.6% in the second quarter from the previous one, reversing a 1.4% growth in the January-to-March period. Economists polled by Reuters have expected China’s GDP to expand by 3.4% in the third quarter from a year earlier. Many international organizations, including the IMF and World Bank, have recently downgraded China’s GDP growth forecasts for this year. Bennett expected the third-quarter GDP data to be released after the Party Congress.

☆ China c.bank rolls over policy loans to maintain liquidity, keeps rate unchanged
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +3 min

The People's Bank of China (PBOC) kept the rate on 500 billion yuan ($69.6 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions at 2.75%, unchanged from the previous operation. Monday's liquidity injection was to "keep banking system liquidity reasonably ample" and to "fully meet financial institutional demand," the PBOC said in an online statement. In a poll of 27 market watchers conducted last week, all respondents forecast no change to the MLF rate, with the vast majority of them expecting a partial rollover. Widening policy divergence could risk yuan depreciation and capital outflows, despite inflationary pressure in China remaining largely benign by global standards. The MLF rate serves as a guide to the loan prime rate (LPR), which is scheduled for release on Thursday.

☆ Xi's call to win tech race points to new wave of Chinese state-led spending
▼ + stars: | 2022-10-17 | by ( Josh Horwitz | ) www.reuters.com time to read: +4 min

The term "technology" was referred to 40 times, up from 17 times in the report from the 2017 congress. Iris Pang, chief economist for Greater China at ING, said Xi's remarks addressed "the urgent need for talent and promoting self-sufficiency in technological advancement". "As such research spending on semiconductor technology should increase. On Monday, shares in Chinese information technology companies (.CSIINT) rose more than 1%, while semiconductor stocks (.CSIH30184) rose 0.7%. Venture capital (VC) has been allowed to invest in Chinese chip companies, with such firms receiving over $30 billion in VC cash between 2020-2021, according to Chinese investment research firm CVInfo.

Helen Wong, Group CEO of OCBC Bank poses for a portrait during an interview with Reuters in Singapore October 10, 2022. And while OCBC earned nearly half of its operating profit from Singapore, Greater China was the next-largest contributor, followed by Malaysia. She added that OCBC benefited from having both a brick-and-mortar and a strong digital footprint. This has increased attention on OCBC, which has the strongest capital position among Singapore banks. Sanford Bernstein analysts said in a report in June that OCBC had S$4.8 billion that could be used for acquisitions without the need to raise capital.

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