Asia-Pacific markets trade lower; China keeps LPR steady

Oil prices fall as China faces Covid concerns, Goldman Sachs cuts forecast

Oil prices fell by nearly a dollar as concerns about Covid in China increased with the country seeing its first recorded virus-related deaths since May of this year.

Brent Crude Oil Futures fell less than a dollar, or 0.9%, to stand at $86.83 a barrel and West Texas Intermediate USA Futures contracts fell 1.09% to $79.21 a barrel.

Goldman Sachs has cut its Brent oil price forecast from $10 to $100 a barrel for the fourth quarter of 2022, citing a drop in Chinese demand due to rising Covid-19 concerns and insufficient information on the oil market. the latest oil price ceiling of the Group of 7 for Russian oil.

“We believe the market has a right to worry about fundamentals going forward,” said economists led by Jeffrey Currie, adding that the likelihood of a further China shutdown equates to the latest OPEC+ production cuts.

— Ly Ung Son

Hong Kong dynamics: Reopening and tech shares fall as China reports Covid-related deaths

Japanese traders rise as Berkshire Hathaway reportedly raises stakes

Shares of several Japanese trading companies rose in early Asian trading, despite a pullback in regional markets, after billionaire Warren Buffett’s Berkshire Hathaway increased its stake in stocks. company, according to personal legal records.

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Berkshire increased its stake by more than 1 percentage point in Mitsubishi, Mitsui & Co, Itochu, Marubeni and Sumitomo to hold more than 6% in each company, the filings show.

Shares of Japan-listed Mitsubishi rose 1.89% in morning trading, Marubeni gained 2.12% and Sumitomo gained more than 1%. Itochu also gained 0.84% ​​and Mitsui inched 0.16% higher.

This comes days after Berkshire Hathaway revealed that it had increased its holdings of US custody receipts by Taiwan Semiconductor Manufacturing Company, prompting the company’s Taiwan-listed shares. up more than 10% in the Asian session.

— Jihye Lee

China keeps the prime lending rate unchanged as expected

China kept its lending prime rate unchanged for the third consecutive month, according to an announcement from the People’s Bank of China.

The announcement said the base rate for the one-year loan was stable at 3.65% and the 5-year rate was also kept at 4.3%.

— Abigail Ng

Korea’s exports continue to decline in the first 20 days of November

According to data from the customs authority, South Korea’s exports in the first 20 days of November fell 16.7 percent year-on-year due to falling demand from China.

The drop in exports was a sharp drop from the 5.5% drop in October year-on-year.

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Imports also fell 5.5% in the first 20 days of November, resulting in a slightly improved trade deficit – $4.4 billion for the period, compared with a $4.9 billion deficit reported in October.

Vietnam has recorded a total trade deficit of $40 billion so far this year, statistics from the agency show.

— Jihye Lee

CNBC Pro: Morgan Stanley’s Mike Wilson predicts S&P 500 bottom, calls it ‘great buying opportunity’

We’re in the “final stages” of a bear market, but the situation will remain challenging for some time, said Mike Wilson, director of US Equity Strategy at Morgan Stanley.

He predicts when — and to what extent — the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

— Wei Zhen Tan

Reuters poll says China expected to keep key lending rate steady

China’s central bank is expected to leave its one-year and five-year loan prime rates unchanged, according to analysts polled by Reuters.

The one-year rate is currently at 3.65% and the 5-year LPR is at 4.3%.

The People’s Bank of China last cut both rates in August.

China’s offshore yuan was weaker at 7.1376 against the US dollar ahead of the decision early Monday.

— Abigail Ng

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, are ‘undervalued’

The value of China’s Big Tech stocks is down 30% this year, such as alibabamaking them “unbelievably cheap,” according to investment bank China Renaissance.

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Its head of securities, Andrew Maynard, not only believes the stock market appears to have bottomed out, but thinks investors could miss out on a rally if they continue to look down on China. Country.

“There is no doubt that China being underweight will cost you dearly in the future,” Maynard said.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Markets are watching for more clues about next week’s Fed rate hikes and the economy

Investors may be a little more cautious next week, with equities looking for direction in quiet trading and bond markets warning of a bigger recession.

The Thanksgiving holiday on Thursday means markets are likely to be quiet on Wednesday and Friday. Merchants will be monitoring Black Friday shopping reports for consumer feedback.

“This has really been a week where data reliance was the key phrase,” said Julian Emanuel, senior managing director of Evercore ISI. “Benevolence [for stocks] higher unless the data continues to deteriorate and the Fed remains hawkish… which has clearly strengthened over the last 48 hours.”

Check out our full insight into what’s to come next week here.

— Patti Domm, Tanaya Macheel

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