Jackson Hole, Hong Kong cancels morning session after typhoon warning

Bank of Japan member Toyaki Nakamura stressed the need to “patiently maintain” his stance on monetary easing, according to Reuters.

In an interview, he said that tightening monetary policy when the production gap remains negative will severely affect household economic activities.

Japan continued to maintain its very loose monetary policy as other central banks aggressively raised interest rates. Inflation in Japan is above target, but not as high as in the US and UK

Nakamura said the gap between inflation in Japan and other economies is largely due to slowing wage growth.

He also said that if China resumes restrictive COVID measures, it will prolong supply disruptions and hurt Japan’s exports, production and capital spending.

– Jie Lee

Australian airline shares Qantas It jumped as much as 10% after the company reported earnings and announced plans to buy back shares.

The company posted a baseline loss before tax of A$1.86 billion ($1.29 billion) for the 2022 fiscal year.

“While the first three quarters of the year were defined by border closures and waves of uncertainty brought on by Covid variables, the fourth quarter saw the highest sustained levels of travel demand since the start of the pandemic,” Qantas said in a statement.

It also announced plans to buy back shares worth up to A$400 million, according to one filing.

“This is the first return to shareholders since 2019 and comes after $1.4 billion in equity raised at the start of the pandemic,” the company said.

– Abigail Ng

FAANG shares delivered a mixed batch of second-quarter earnings, but Goldman Sachs He keeps his purchase calls for almost the entire assembly.

Only one share is a sale, according to the bank.

Professional subscribers can Read the story here.

– Xavier Ong

Hong Kong has postponed its morning session due to the issuance of the signal for Typhoon No. 8, the stock exchange Advertise on their website. The session will likely resume in the afternoon as the signal has now been downgraded to T3.

“If Typhoon Signal Release 8 or higher, or any announcement of extreme conditions, continues at 9:00 AM, morning trading sessions for all markets will be cancelled.”

HKEX’s guidance on its website for resuming its session states that “trading will begin in the first half hour approximately two hours after Typhoon Signal #8 or any announcement of extreme conditions has been stopped.”

– Jie Lee

The Bank of Korea raised the country’s benchmark interest rate by 25 basis points to 2.50%.

The move was in line with a Reuters poll where all but one of the 36 economists predicted an increase. One expected a 50 basis point rise.

It follows a 50 basis point increase in July – the largest increase since the bank adopted the currency policy regime in 1999, and comes as it expects GDP growth to be “less than the 2.7% forecast in May”.

Central Bank Governor Ri Chang-yong is expected to hold a press conference explaining today’s decision later in the morning.

– Jie Lee

Recession risk is increasing, according to Canaccord GenityAnalysts led by Tony Dwyer.

“Our indicators point to the potential for an increasing recession as we move into next year, especially if the Fed continues to raise interest rates,” according to a research note dated August 22.

but according to Morgan Stanley And the UBSSome stocks still look cheap – even with the risk of a price slowdown. Here are some of the stocks they prefer.

Professional subscribers can Read the story here.

– Xavier Ong

Treasury yields soar ahead of the Federal Reserve’s annual symposium in Jackson Hole, Wyoming on the notion that the market’s view was more dovish than the central bank.

The three-day event begins on Thursday, and the market focus is more on Federal Reserve Chairman Jerome Powell’s Friday morning speech.

The market had been anticipating the Fed’s hawks based on the pre-meeting comments. For example, some Fed officials have been retracting the market view that the Fed might cut interest rates soon after it finishes raising them next year.

Yields, moving opposite the price, were moving higher on expectations that Powell would emphasize an aggressive policy to fight inflation and keep rates at high levels for a longer period. The 10 years return It hit 3.11% on Wednesday morning, the highest level since late June.

“I think what the bond market is trying to try to understand is Powell’s view of this policy reversal in 2023,” said Jim Caron of Morgan Stanley Investment Management.

– Patty Doom