Asia Markets, Australia Retail Sales, Hong Kong Mask Mandate, Bank of Japan

Iron ore prices are set to trade at $115 to $110 a ton, Jonathan Barratt, CEO of Celsius Pro Forecasts, told CNBC.

“I think the key moment that we’re focusing on is what the Chinese regulatory authorities are doing at the ports in terms of price regulation…and the fact that they don’t really want to see too much. [iron ore] “What could result from this is a drop in iron ore stocks from 160 million tons to 120 million tons,” he said.

In a recent response to rising iron ore prices in China, the The National Development and Reform Commission issued a statement It will implement regulations and crack down on illegal activities to strengthen control over iron ore market prices.

“As a result, we could see a significant decline in inventory build-up in Chinese ports … and that will kind of put a flavor of lower demand into the equation,” Barratt said.

The benchmark iron ore traded up 62% last at $125.74 a tonne.

– Lee Ying Chan

Tesla needs to lower its prices to compete with Chinese electric car makers who have a cost advantage, according to an investment advisory firm.

Chinese battery maker CATL reportedly offered to sell its batteries to Chinese automakers at a discount, As reported by Reuters.

Bill Russo, founder and CEO of Automobility Limited, said on CNBC’s “Squawk Box Asia” Tuesday.

He added that Tesla “lacks the product suite and portfolio that brings traffic to the showroom.”

“If you’re a Tesla, you can’t sell old models to new competition. So their new model has to come at a low price in order to create showroom buzz and to be price-competitive in China,” Russo said.

– Sheila Chiang

Despite China’s reopening, investors should remain selective when looking at Chinese stocks, according to Amundi’s chief investment officer Vincent Mortier.

Speaking to CNBC’s “Squawk Box Asia,” Mortier said he likes A-stocks in China, but not the very big names.

He highlighted “innovative players” in areas such as the healthcare and semiconductor sectors, adding that “there is value to be found, but you need to look more.”

As for the Chinese real estate sector, Mortier sees opportunities still, noting that “there have been very cheap names for a good reason.” [or have] He’s been knocked a lot. So if you select the good names you can make very good returns. But you have to swallow the volatility and the risks.”

– Lim Hwi Ji

Shares of South Korean battery materials maker L&F jumped more than 15%, after it announced it had won a nearly $3 billion order from Tesla.

The company said in a filing It has won a $2.91 billion contract to provide high-nickel cathode materials to Tesla from January 1, 2024 to December 31, 2025.

L&F shares were last trading up 10% on Tuesday, hovering at their highest since May 2022.

– Jihe Lee

Hong Kong will end its mask mandate at home and abroad on Wednesday, March 1, its chief executive John Lee said at a press briefing.

When asked about the reasoning behind the timing, he cited a “comprehensive assessment” and confirmed that the government had previously said it would closely monitor the situation.

He told me that mask rules for hospitals and nursing homes will be added administratively.

– Jihe Lee

Bank of Japan Deputy Governor Masazumi Wakatabe reiterated his support for the central bank’s inflation target of 2%, according to the copy of his speech Delivered at Columbia University.

“The idea of ​​setting a clear inflation target is based on the importance of communication,” he said in his speech.

He said, “Communication with the general public is particularly important because their perception plays a key role in fixing inflation expectations, and thus influences the actual development of inflation,” adding that the central bank’s “sustained monetary easing” had a positive impact on the real economy.

– Jihe Lee

South Korean entertainment company SM Entertainment has announced an improved shareholder return policy ahead of its annual general meeting in March, it said Monday. filing.

The company plans to expand shareholder return targets to at least 30% of its separate net income from 20%.

The move is seen as part of a broader effort to preserve small investors who own just over 70% of the shares in SM.

Rival K-pop agency Hybe became SM’s largest shareholder after purchasing a 14.8% stake in Lee earlier this month, while Kakao bought a 9.05% stake.

SM Entertainment shares were up 0.25% Tuesday, Hybe shares were up nearly 3% and Kakao was up 0.32%.

– Lim Hwi Ji

Japanese retail sales rose 6.3% for the month of January compared to the same period last year, beating economists’ expectations of 4%.

Government data showed that commercial sales in January 2023 amounted to 45.7 trillion yen ($335 billion), up 3.2% from the same month last year.

Wholesale sales reached 32.7 billion yen, up 2% from a year ago, while retail sales increased 6.3% to 13 trillion yen.

– Lim Hwi Ji

Japan’s industrial production fell 4.6% month-on-month in January, the largest decline the economy has seen in eight months, according to Japanese Ministry of Economy, Trade and Industry.

The reading fell more than expectations for a 2.9% decline and came after a 0.3% rise in the previous month.

Automotive, semiconductor manufacturing equipment, spare parts and technical devices led the overall decline. Shipments fell moderately, leaving inventories depressed for the second month in a row.

The statement said that core capital goods witnessed a sharp decline.

– Jihe Lee

Two technical topics have stormed Wall Street so far this year.

The first is the return of semiconductor stocks, as chip demand rebounds. The other is artificial intelligence, following the hype surrounding chatbot ChatGPT.

CNBC Pro screened for the highest-rated ETFs with exposure to semiconductors and/or AI-related stocks (among others) using Morningstar data. The resulting funds have a four or five star rating from Morningstar, and have performed well over the past three years.

CNBC Pro subscribers can read more here.

– Wizen tan

The People’s Bank of China and the China Banking and Insurance Regulatory Commission have issued draft measures to strengthen the ability of financial institutions to lend to companies that rent out residential real estate.

The draft showed that the measures aim to expand bond financing channels for rental housing companies, support the issuance of operating loans for leasing, and strengthen credit support for the construction of rental housing.

– Jihe Lee

Investors wondering what drives stock market movements should look at interest rates.

Chart analysts say last week’s sell-off can be linked to the advance in bond yields. Last week, the three main stock indexes recorded their worst week of the year.

The recent reset by the stock market seems to be a byproduct of higher rates, rather than a [simple] “Resets out of the overbought territory for the stock,” JC O’Hara, chief market technician at Roth MKM, said in a note to clients Sunday.

“Overall, we believe this decline was orderly for the stock,” he added in his note. “However, high rates are becoming a big factor again.”

Analysts said the fixed income moves could be a driver going forward for the stock market. CNBC Pro subscribers can read the full story here.

– Alex Haring

According to Morgan Stanley, the stock market’s latest attempt to pull back from the downtrend may end soon.

Mike Wilson, the company’s chief US equity analyst, said in a note to clients Monday that the S&P 500 is about to fall back into a bear market.

“With the stock market showing signs of exhaustion after the recent Federal Reserve meeting, the S&P 500 has decisive technical support. Given our view of earnings, March is a high-risk month for a resumption of the bear market,” Wilson said.

For more, read the full story on CNBC Pro.

—Jesse Pound, Tanaya Machell

The two-year yield added to February’s gains on Monday, reaching 4.8% on the day. This is the highest level since July 2007. Short-term interest rates have moved higher this month as traders fear they could tighten monetary policy for longer than expected.