Hong Kong shares rose 3% as technology stocks advanced; Chinese activity data disappointing

Shares of Chinese technology companies listed in Hong Kong rose significantly in the first hour of trading.

Tencent increased by 7.6%, Mituan gained 5.9% and Ali Baba It rose 9%. Hang Seng Tech is up about 4%.

The moves come despite disappointing activity and retail sales data from China, and after US President Joe Biden and Chinese President Xi Jinping. Meeting Before the G-20 summit in Bali.

Svanad’s chief investment analyst said the discussion between the two leaders went “much better” than expected, although thanks to low expectations, the discussion between the two leaders went “much better” than expected.

shares Taiwan Semiconductor Manufacturing Corporation Listed in Taiwan jumped after Berkshire Hathaway Detection $4 billion in the company.

The stock is up as much as 9.44%, reaching its highest level in nearly two months.

Berkshire added more than 60 million shares of the Taiwanese chipmaker’s ADRs, worth $4.1 billion (1.2% of the TSM) by the end of the third quarter, making Taiwan quasi-conglomerate the tenth largest holding at the end of September.

The stock last rose about 8%.

China’s industrial production grew 5% in October from a year ago, slowing from a 6.3% increase in September. The latest figures came against an estimate of a 5.2 percent increase expected in a Reuters poll.

Separately, retail sales in China fell 0.5% in October from a year ago, missing expectations.

Analysts polled by Reuters had expected a 1% increase, and retail sales growing 2.5% in September.

– Abigail Ng

With so many stocks in a bear market, stocks could be undervalued by 15%, according to Morningstar.

The chief US strategist at the equity research firm believes that the headwinds that were in place earlier in the year will start to subside early next year and will benefit stocks.

Dave Sekera also shared his “fair value” assessment of six companies with a “wide economic moat” that would outperform in such an economic environment.

CNBC Pro subscribers can read more here.

– Ganesh Rao

The Reserve Bank of Australia has hinted at more and possibly larger rate increases in the future in its efforts to tame inflationary pressures, according to Minutes Released from its last meeting.

“The board agreed on the importance of bringing inflation back to the target and expects to increase interest rates further in the coming period,” he said in the statement.

The central bank said it considered raising interest rates by 50 basis points, but saw a stronger case for a 25 basis point rate increase.

The RBA said higher interest rates would be part of a broader effort to “establish a more sustainable balance of demand and supply in the Australian economy,” adding that members did not rule out the possibility of a return to larger hikes if needed.

– Jie Lee

Official preliminary estimates showed that the Japanese economy unexpectedly contracted in the third quarter of last year.

GDP contraction 1.2% In the July-September quarter compared to the same period last year, it missed a 1.1% growth estimate in a Reuters poll.

– Abigail Ng

What stocks could benefit if China reversed its zero-Covid policy? Market pros reveal how reopening is playing out as China relaxes some of its virus controls.

Professional subscribers can Read more here.

– Xavier Ong

The S&P 500 rebounded from its lows and Treasury yields eased from their highs a little late in the morning after Fed Vice Chairman Lyle Brainard. He said It may be appropriate “soon” to slow the pace of interest rate hikes, in a conversation with Bloomberg News.

The S&P 500 was recently down 0.1% after falling more than 0.7% at one point on Monday. The 10-year Treasury yield rose 5 basis points to 3.878% after trading higher at 3.90% earlier.

“I think the really important thing to stress is that we’ve done a lot but we have additional work to do in terms of raising interest rates and maintaining restraint to bring inflation down to 2% over time,” Brainard added.

—John Milloy, Jeff Cox

Fed Governor Christopher Waller said that while the central bank may raise interest rates at a slower pace next month, this should not be interpreted as a weak signal in its fight to lower inflation.

“Stop paying attention to the pace and start paying attention to where the end point is going to be. And until inflation is brought down, that end point is still the avenue available,” Waller said on Sunday.

Earlier this month, the Fed raised interest rates by 75 basis points Highest level since 2008.

– Fred Ambert