Most stocks in the Asia-Pacific region rose after a cooler reading of inflation

China’s exports and imports Fell lower than expected For the month of December, according to the customs administration.

China’s exports fell 9.9 percent in December compared to a year ago, in US dollar terms, slightly better than the 10 percent drop predicted by a Reuters poll.

Imports were down 7.5% in December compared to a year ago in dollar terms, also doing better than the 9.8% decline expected by Reuters.

A mild recession meant continued trade growth for 2022.

—Evelyn Cheng, Li Yingchan

The Bank of Korea raised interest rates by 25 basis points to 3.5%, the highest level since December 2008. The move was in line with Reuters expectations.

“The Board considers that an additional increase of 25 basis points is justified to ensure price stability, as inflation remains high and is expected to be above the target level for a prolonged period,” according to the Bank of Korea. wrote in a statement.

Governor Ri Chang-yong said at a press conference Q4 2022 GDP is likely to be negative, but he estimates that Q1 2023 GDP growth could be better.

“Today’s rally marks the end of the current BoK tightening cycle, but the hurdle for shifting toward an accommodative bias remains high,” ANZ Research economist Krystal Tan wrote in a note.

– Lee Ying Chan

Investors looking for recession-proof stocks may want to consider buying shares in a renewable energy producer and a cybersecurity company, according to one outperforming fund manager.

Trent Masters of investment management firm Alphinity, who named the stock, said that while the energy company can raise prices above inflation even during a recession, the cybersecurity firm will see increased demand for its services this year.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Uniqlo owner shares Retail Express It fell 6.68% the next day declaring Wages will be raised by 40%.

This war for talent is escalating [Tadashi Yanai]the founder of Uniqlo, fully admits,” Jesper Koll, director of experts at Monex Group, told CNBC’s “Squawk Box Asia” about the wage hike.

“Japanese workers have understood its value, they have realized its value… As a result, if you want to keep this talent, you will have to start paying.”

Express retail is the heavyweight of Japan standard Nikkei 225 indexwhich fell 0.6%, bucking the overall positive trend for Asia Pacific stocks.

Cole added that while Fast Retailing is doing a “great job” in the physical space, its presence in e-commerce still has room for improvement.

“So far [that’s] It will not be a major driver of growth.”

– Lee Ying Chan

Cryptocurrencies rose even after the US Securities and Exchange Commission Accused encryption companies Genesis and Gemini With Sale of unregistered securities.

bitcoin It was trading up 4.81% at $18,838.66, according to data from Coin Metrics. currency on Thursday jumped over $19,000its highest level in more than two months.

ether It rose 1.67%, to stand at $1,414.65.

The SEC alleged that Genesis loaned Gemini users crypto and sent a portion of the profits to Gemini, which deducted agent fees and returned the remaining profits to its users.

– Lee Ying Chan, Kate Rooney

After a tough year for Asia Tech, Goldman Sachs The sector is believed to be heading for a “major bottom” – and subsequent recovery – in the first half of 2023.

The bank’s analysts said investors looking to cash in should act early, as share prices are set to rebound quickly.

They also named a master chip stock to run it.

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– Xavier Ong

The stocks ended Thursday’s trading session in the green.

the daw And NASDAQ Composite They both rose 0.6%. the Standard & Poor’s 500 0.3% profit.

The close marked the fifth consecutive day of gains for the Nasdaq index as investors bought high-tech stocks hoping for an improved outlook for growth names. This is the first time the indicator has posted a line of this length since July.

– Alex Haring

The slight decline in consumer prices in December will not change the course of the Federal Reserve, as it meets to raise interest rates on January 31 and February 1.

The consumer price index fell 0.01%, as expected by economists, and rose 6.5% from a year ago. Core CPI also rose 0.03% as expected.

“Even as markets retreated from the Goldilocks scenario in the employment report, the Fed has been doubling down on its pledge to derail inflation because they see this as a marathon rather than a sprint,” said Diane Swonk, chief economist at KPMG. .

Stock futures rose after the report while Treasury yields fell. Returns move opposite the price.

“It was exactly in line. They went up the S&P 500 by 50 points yesterday and everyone was hoping for a soft number. It was as expected. It doesn’t change anything,” said Peter Boockvar, chief investment officer at Blakeley Financial. “They’re almost done raising prices. Higher for longer is what people should focus on.”

Swonk and other economists expect the Fed to raise interest rates by half a percentage point on February 1st. However, the futures market was priced up by a quarter point.

– Patty Dom

Shelter costs, which include rent, jumped more-than-expected in the Consumer Price Index for December, and this is an area economists are watching closely.

Shelter was up 0.8%, or 7.5%, from a year ago. Some economists expected a 0.6% gain in shelter, which accounts for 40% of the core CPI. CPI shelter costs are known to lag behind actual market data on rents.

“In this single month report, there is almost no inflation outside of shelter,” said Luke Tilley, chief economist for the Wilmington Trust. “Commodity prices are crashing mostly because of cars, computers, laptops, and technology. Used car prices are down 27.5% at an annual rate over the past three months, and they will likely continue to fall.”

Tilly expects housing inflation to slow in the next two months. As for the general consumer price index, it decreased by 0.01%, as expected.

The increase in housing inflation is something to watch, said Greg Peters, chief investment officer at PGIM Fixed Income. He said the market expected a slightly larger decline in the core CPI.

“I still think it’s pretty much OK. I think the numbers are going to continue to come down. The real question is where are you going to start going down?” Peters said. “This is the part that should be the focus. It’s great that the CPI is mechanically lower, and there is some good news in the report. But that doesn’t mean the Fed is close enough to its target that it feels comfortable.”

Tilly said he expects 2023 to be different from 2022, as inflation has surprised the upside. “We can see in 2023 the opposite of what happened in 2022, with inflation suddenly declining,” he said.

– Patty Dom

The Consumer Price Index fell 0.1% in December, matching the Dow Jones estimate. It was the largest monthly decline since April 2020. The core CPI, which excludes volatile food and energy prices, also missed expectations by 0.3%. gain.

on an annual basis, The index rose 6.5%, still well above the federal inflation target of 2%..

– Fred Imbert