Asia markets were mixed as Japan’s GDP beat expectations

The Reserve Bank of Australia said that overseas inflation data was “reassuring” in the minutes of its August 1 monetary policy meeting.

in minutesThe RBA indicated that inflation fell further and was slightly less than expected in the June quarter, although services inflation remained flat.

The RBA board added that the economy is expected to grow slowly as it moves forward, and this should help further moderate inflation.

However, the bank did not completely rule out further tightening, saying that “whether or not another rate hike is needed will depend on the data and an evolving assessment of risk.”

– Lim Hwi Ji

China’s central bank unexpectedly cut key interest rates for the second time in three months on Tuesday.

The People’s Bank of China said it cut the interest rate on 401 billion yuan ($55.25 billion) of one-year medium-term lending facility (MLF) loans from 2.65% to 2.50.

The central bank also conducted a 204 billion yuan reverse repo through a seven-day reverse repo, and cut borrowing costs to 1.8%, down from 1.9%.

– Lim Hwi Ji

China Industrial production and retail sales figures For the month of July, both forecasts came in below expectations, adding to the weak batch of economic data seen in the country.

Industrial production rose 3.7% year-on-year, missing the 4.4% expected by economists polled by Reuters. On a year-to-date basis, industrial production is up 3.8% year-over-year.

Separately, retail sales in China grew 2.5% year-on-year, with total retail sales reaching 3.68 trillion yuan in July, less than the 4.5% growth rate predicted by a Reuters poll.

– Lim Hwi Ji

Investors have been fleeing China’s markets in favor of others for most of this year, fearing a weak economic recovery.

Here are some alternatives to China and stocks to invest in, according to the pros, who also debate whether Chinese stocks make a comeback.

CNBC Pro subscribers can read more here.

– Wizen tan

Japan’s economy grew by 6% on an annual basis in the three months ending in June, beating the 3.1% growth forecast of economists polled by Reuters.

On a quarterly basis, growth came in at 1.5% for the second quarter, nearly double the expected 0.8%.

The data showed the fastest growth rate since the last quarter of 2020, when Japan recorded a growth of 2.8% on a quarterly basis and an annual growth of 11.7%.

— Lim Hwi J

Barclays has identified several European stocks that could benefit from the bear inflation environment.

The investment bank said that “inflation winning” stock pickers are particularly adept at operating in an anti-inflationary environment, and at least two picks are expected to rise more than 60% over the next 12 months.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Nvidia shares rose 7.09% during Monday’s main trading session. Monday’s gains come after a sell-off in the chip maker’s stock in the previous trading week, when it lost 8.56%.

Morgan Stanley reiterated the stock as a “top pick” ahead of Nvidia’s earnings report. The company cited an influx of AI spending and an “extraordinary” supply-demand imbalance that looks set to continue for the next several quarters.

The stock has gained nearly 200% year-to-date.

Consumer confidence increased last month that the rate of inflation will continue to fall in the short and long term, according to a New York Federal Reserve survey released Monday.

The July survey of consumer expectations showed that respondents expect inflation a year from now to be at 3.5%, down from the 3.8% expected in June. The three- and five-year forecasts also fell to 3% and 2.9%, respectively.

Despite expectations of a lower rate, households expect a 5.4% annual increase from now, up from 5.2% in June but below the long-term average of 6.1%. Forecasts for house price growth fell to 2.8% while expectations for higher gas and food prices also eased slightly to 4.5% and 5.2%, respectively.

– Jeff Cox

Former Dallas Fed chair Robert Kaplan expects interest rate cuts next year, though he warned Monday of “crosscurrents” that could keep inflation high.

“I don’t think the Fed will take any action at the September meeting, but I think the estimate that by the middle of next year they will feel appropriate to cut interest rates is not unreasonable,” Kaplan said on CNBC. squawk box.” “I don’t know if it will end that way. But it’s as good as the expectations I think at this point.”

However, he hedged slightly, saying higher levels of government spending would pressure bond yields and could force the Fed to stay tight.

“This is the ‘X’ factor that is most difficult for me to measure,” Kaplan added.

– Jeff Cox