Asian morning market: stock slides after US recession
Most Asian markets fell on Thursday morning after the US stock market retreated from record highs.
Markets in Japan, China, Hong Kong and Australia have all declined, while South Korea has gained slightly.
In the US, the benchmark S&P 500 index fell 0.5 percent on Wednesday from a record close on Tuesday, the only sector that gained, including technology group and consumer stocks, Amazon.
The technology-heavy Nasdaq composite was flat. The yield on the 10-year U.S. Treasury note fell 0.07 percentage points to 1.54 percent.
Australia’s S&P / ASX 200 lost 0.6 percent on Thursday.
South Korea’s Kospi was flat after gaining up to 0.3 percent in the morning.
Japan’s topics fell 0.7 percent after losses to the previous 1.3 percent.
China’s CSI 300 fell 0.2 percent after losing 0.6 percent earlier.
Hong Kong’s Hang Seng index fell 0.5 percent.
Coal futures have declined after Chinese regulators signaled price controls
China’s economic planning agency said it would send inspection teams to the mine, after trading in Zhengzhou commodities on Thursday, raising fears of a price cap, as thermal coal futures fell to their lowest level in more than a month.
According to Refinitive, thermal coal futures traded down 13 percent at Rmb1,339 ($ 209), adding a 9.5 percent loss the day before.
On Wednesday, the NDRC said it would send inspection teams to coal mines, storage locations and transit points and maintain a “zero tolerance” approach to those regions and companies that have not strictly implemented coal supply and price stability requirements.
The announcement came after weeks of deficits and rising prices that saw the country increase imports to cut off electricity. Last week, the NDRC called coal producers and warned them against seeking “extra profits”.
As the chip crisis continues, Samsung’s profits are at a three-year high
Samsung Electronics expects Global Chip Crunch to impact its business next year after reporting its highest quarterly profit in three years.
Covid-19, the world’s largest maker of computer chips, smartphones and electronic displays, has benefited from a memory boom during the epidemic, but microchip prices have recently come under pressure as the homework boom has faded and the economy has revived.
The South Korean company’s net profit jumped 31 percent to Won12.3tn ($ 10.4bn) in the July-September quarter as sales rose 10 percent to a record 74tn.
“For the fourth quarter, the company will focus on meeting the demand for memory and system semiconductor products, even the material shortages of some customers may affect demand,” Samsung said.
For the next year, the company expects global IT demand to recover but has been warned against “disruptions in component supply and uncertainties related to Covid-19”. Samsung expects demand for home appliances to weaken next year as people can spend less time at home with the “live with Covid-19” policy.
The downbeat outlook has affected the company’s stock, which has lost more than 10 percent this year, with analysts predicting that memory chips could enter a downcycle.
Brazil has accelerated policy tightening with a 1.5% interest rate hike
Brazil’s central bank has announced its biggest interest rate hike since 2002, continuing to fight double-digit inflation as investors fear a splurge on pre-election government spending.
The most populous country in Latin America is witnessing some sharp price increases in major economies, driven by factors including higher fuel costs, a weaker exchange rate and a drought that has raised energy bills.
Banco Central du Brasil, or BCB, has taken a stylish stance and stepped up its tightening on Wednesday.
Its monetary policy committee unanimously decided to jump 1.5 percentage points, up from 1 percentage point in the previous two meetings, to the benchmark celibate rate of 7.75 percent.
The BCB said it had predicted a similar level of adjustment at its next meeting.
Read more about Brazil’s policy decisions here.
Ford raises full-year guidelines and points to improving chip deficits worldwide
Ford’s board of directors voted to reinstate the company’s dividend payments at the start of the next quarter’s epidemic.
Despite declining third-quarter revenue and profits, the Michigan-based carmaker raised its full-year guidelines for the second time.
Ford said it now expects to post between $ 10.5bn to $ 11.5bn in interest and tax revenue. The previous outlook topped 10 billion.
Ford said the availability of semiconductors “remains a challenge” in the face of a global shortage, but has improved since the second quarter.
“We’re doing the maximum we have,” says John Lawler, chief financial officer.
Revenue fell 5 percent to $ 35.87 billion from the third quarter a year earlier. Revenue and pre-tax adjusted revenue fell nearly 17 percent to $ 3 billion.
What to see in Asia today
Central bank news: The Bank of Japan will release its outlook report for economic activity and prices, along with monthly retail sales figures. It will also announce its monetary policy statement.
Income: A big day for technology revenue in Asia, with Nokia, Panasonic, Samsung and Sony all reporting. Electric vehicle maker BYD Co will report Q3 earnings, as will the Bank of China and PetroChina.
Southeast Asia data: Singapore reports its Q3 unemployment rate and Malaysia releases its monthly trade balance figures
Tech is unable to maintain U.S. stocks at record highs
U.S. stock markets fell back from their record highs on Wednesday, as reports of strong earnings from technology giants were not enough to offset the weakness of the rest of the market.
The benchmark S&P 500 index fell 0.5 percent from Tuesday’s record close, with Consumer stocks, including Technology Group and Amazon, the only gainers. The technology-heavy Nasdaq composite was flat.
Fuel stocks were the biggest driver of the fall as oil prices retreated from their recent highs.
Microsoft and Google’s original alphabet were bright spots, jumping 4 percent and 5 percent, respectively, after breaking analysts’ forecasts with third-quarter results released after the closing hours on Tuesday evening.
The yield on the 10-year U.S. Treasury note fell 0.07 percentage points to 1.54 percent.
Elsewhere in North America, the Bank of Canada abruptly ended its bond-buying activities, pushing the market and signaling that it could raise interest rates by the middle of next year, becoming the latest central bank to respond to stubbornly high inflation with a drastic policy change. .
The yield on Canadian two-year government bonds, which is sensitive to interest rate expectations, jumped 0.21 percentage points to 1.07 percent. The prospect of a higher rate helped the Canadian dollar to trade at C $ 1.24, up 0.3 percent against the US dollar.
Read more about day market movements here.