The Japanese Nikkei index exceeds 33 thousand points. Asian markets rally ahead of the Fed meeting

Shares of Japanese automaker Toyota rose more than 5% after the company announced that it will offer a full range of battery electric cars with “next generation” batteries from 2026.

It will be developed and manufactured by a new EV unit called BEV Factory, which was incorporated in May.

It could also signal an ongoing shift in the automaker’s EV strategy under new CEO Koji Sato, who took the helm in April.

The company notably announced a technology breakthrough in all of its solid-state batteries, and said it would review and accelerate its introduction of conventional HEVs. [its] Developed as a battery for electric vehicles.

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– Lim Hwi Ji

the People’s Bank of China Cut the seven-day reverse repo rate by 10 basis points from 2% to 1.9%, by injecting two billion Chinese yuan ($279.97 million) through seven-day repurchase agreements. a repurchase agreement (repo) It is a type of short-term borrowing rate.

It is the central bank’s first such move since August and follows the country’s largest banks cutting deposit rates last week, suggesting more monetary easing is ahead.

The Chinese inland yuan fell 0.25% to 7.1618 against the US dollar after a brief rally on Tuesday, hovering around its weakest level since November.

– Jihe Lee

This is particularly so because tech companies are “beginning to get ahead of themselves in terms of manufacturing in India,” says Michael Yoshikami, founder of Destination Wealth Management.

Gene Seroka, the seaport’s executive director, says shipments are moving “quite smoothly,” though some truckers and port customers are experiencing delays.

India consumer price index It rose 4.25% year-on-year in May, marking the slowest rate of inflation since January 2021.

This was lower than April’s figure of 4.7% and also lower than the 4.42% expected by economists polled by Reuters.

Government data showed that clothing and footwear prices witnessed the highest increase of 6.64% in May, followed by housing prices, which rose by 4.84%.

– Lim Hwi Ji

Analysts have identified a group of companies that would benefit from higher interest rates for longer: those that are cash-rich and have strong balance sheets.

Although the US Federal Reserve is expected to halt its hikes this week, there are fears that it will resume it after that. This is due to factors such as inflation, which is becoming more stable than it seems, and the labor market, which is still tight.

CNBC Pro scoured the S&P 500 and MSCI World for such cash-rich stocks. One appeared on the screen with a potential upside of about 80%, and two other semiconductor stocks – popular with investors at the moment – also appeared.

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– Wizen tan

Jonathan Chu of Bain Capital discusses the company’s offer to take the Chinese data center operator private in a deal valued at approximately $3 billion.

Nvidia, a dominant player in the AI ​​computing market, may face increased competition from custom chip designers in the near future, according to Morgan Stanley.

“Budget costs and power requirements are the two major barriers to future AI computing,” Morgan Stanley analysts led by Charlie Chan said in a June 11 note to clients.

“So we expect to see increasingly power-efficient and low-cost AI-dedicated chip designs that match or even outpace the growth of NVIDIA and AMD’s general-purpose GPUs.”

Investment bank “substantial” on five global stocks can benefit from this trend.

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– Ganesh Rao

Lee Woon Shiu, Head of Wealth Planning at DBS Bank Group says, “The family office proposal is…the most important game-changer to be rolled out in Singapore in the past five years in the wealth management space.”

Stocks closed higher on Monday as investors increased optimism that the central bank may skip a rate hike at this week’s policy meeting.

The S&P 500 added 0.93% to close at 4,338.93, while the Nasdaq Composite rose 1.53% to end the day at 13,461.92. The Dow Jones Industrial Average rose 189.55 points, or 0.56%, to close at 34,066.33 points.

Investors will also be looking forward to fresh inflation data this week, as the Consumer Price Index for May is due on Tuesday.

– Brian Evans

It’s a relatively quiet day on Wall Street as investors look ahead to the Federal Reserve’s mid-week meeting.

Just over 31.5 million shares of the SPDR S&P 500 ETF Trust, a tracker of the broad S&P 500 index, had exchanged as of 2 p.m. ET with just two hours remaining in the trading day. On a full day average over the last 30 sessions, about 80.6 million shares have changed hands.

This lower volume confirms the typical calm before the storm seen in early weeks with the Fed meeting on the agenda. Investors will be watching Wednesday’s announcement and press conference regarding any changes to the rate hike path and comments from Fed Chair Jerome Powell on the state of the economy and future monetary policy.

Ahead, CPI data due on Tuesday will also be watched as it correlates with inflation.

– Alex Haring

According to Nomura, winds from improvements in delivery could be restrained by increased competition for electric car maker Nio.

Analyst Frank Fan started covering the China-based automaker’s stock at a neutral price. Its $7.50 price target suggests US-listed stocks will be down about 3% in the next year from where they ended Friday’s session.

“We believe the company is on track to improve deliveries at 2H23F,” Fan said in a note to customers Sunday, describing deliveries in the first quarter as “lackluster.” “However, we expect NIO’s implied upside to be capped by intense competition and limited market share improvement in 2023F, based on the company’s 2023 guidance to deliver against the overall growth projections of the electric vehicle industry.”

Fan’s price target indicates further decline for the stock, which is already down more than 14% this year.

On Monday, the company cut prices and ended free battery swaps for new buyers despite management saying earlier this year that the company would not get into an electric vehicle “price war.” US stocks rose more than 7% in Monday’s session.