Asia-Pacific markets trade less; China keeps the LPR steady

Oil prices fall as China faces Covid fears, and Goldman Sachs cuts its forecast

Oil prices fell nearly $1 as Covid fears rose in China with the nation seeing a The first death related to the virus was recorded since May this year.

Brent Crude Futures losing less than a dollar, or 0.9%, to stand at $86.83 a barrel and West Texas Intermediate USA Futures fell 1.09% to $79.21 a barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 a barrel for the fourth quarter of 2022, citing waning Chinese demand as Covid concerns mount and insufficient detail from Russia’s recent G7 oil price cap.

“We believe the market has a right to worry about future fundamentals,” economists led by Geoffrey Corey said in the note, adding that the potential for further lockdowns in China equaled the latest Production cut by OPEC+.

– Lee Ying Chan

Hong Kong movers: Stocks reopen and tech stocks drop as China reports Covid-related deaths

Japanese trading houses rise as Berkshire Hathaway is reported to boost its stake

Shares of some Japanese trading companies rose early in the Asian session, despite the decline in the region’s markets, after billionaire Warren Buffett’s Berkshire Hathaway boosted his stake in the companies, according to individual regulatory filings.

Berkshire increased its share by more than 1 percentage point MitsubishiAnd the Mitsui & CoAnd the ItochuAnd the Marubeni And the Sumitomo Filings showed that it holds more than 6% stake in each company.

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Japan-listed Mitsubishi shares rose 1.89% in the morning session, Marubeni rose 2.12%, and Sumitomo rose more than 1%. Itochu rose 0.84%, and Mitsui rose 0.16%.

This comes days after Berkshire Hathaway a statement It increased its share of Taiwan Semiconductor Manufacturing Company’s American Depositary Receipts, sending shares of the Taiwan-listed company soaring more than 10% in the Asia session.

– Jihe Lee

China is keeping its loan prime rates suspended as expected

China left its benchmark lending rate unchanged for the third consecutive month, according to an announcement from the People’s Bank of China.

The one-year principal loan rate is fixed at 3.65%, the notice said, and the five-year rate is also suspended at 4.3%.

– Abigail Ng

South Korea experienced an even larger decline in exports in the first 20 days of November

South Korea’s exports for the first 20 days of November fell 16.7% year-on-year, as demand from China slumped, according to data from the customs agency.

The decline in exports is a sharp decline from a 5.5% decline in October compared to the same period last year.

Imports also fell 5.5% in the first 20 days of November, slightly improving the trade deficit – $4.4 billion for the period, compared to the $4.9 billion deficit reported in October.

Statistics from the agency showed that the country recorded a total of $40 billion in trade deficit year-to-date.

– Jihe Lee

CNBC Pro: Morgan Stanley’s Mike Wilson Predicts S&P 500 Bottom, Calls It ‘A Great Buying Opportunity’

China is expected to keep record lending rates steady, a Reuters poll said

China’s central bank is expected to keep key interest rates for the one-year and five-year loan on hold, according to analysts polled by Reuters.

The one-year rate is currently 3.65%, and the five-year LPR is 4.3%.

The People’s Bank of China lowered the two rates last August.

China Maritime yuan It was weaker at 7.1376 against the US dollar before the decision early Monday.

– Abigail Ng

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, are ‘undervalued’

This year, a 30% decline in the value of shares of major Chinese technology companies, such as Ali Babamade it “incredibly cheap,” according to investment bank China Renaissance.

The head of equities, Andrew Maynard, not only believes that the stock market looks like it has bottomed out, but also that investors could lose the rally if they remain less heavy on China.

“Without a shadow of a doubt, underweight China is going to cost you going,” Maynard said.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Markets are watching for more clues of Fed increases and the economy next week

Investors may be a bit more cautious next week, as stocks seek direction in quiet trade and bond market warnings of a recession get louder.

The Thanksgiving holiday on Thursday should mean that the markets will likely be quiet on Wednesday and Friday. Merchants will be watching reports on Black Friday holiday shopping for consumer feedback.

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“It really is a week where data-driven is the keynote,” said Julien Emmanuel, Senior Managing Director at Evercore ISI. bias [for stocks] It will be higher unless data continues to deteriorate and the Fed remains hawkish…which has clearly strengthened in the last 48 hours. “

Check out our full deep dive on what to expect next week over here.

– Patti Dome, Tanaya Machell

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