Asian markets were mixed after the Fed raised rates and hints that hikes may end

3 hours before

State Bank of India says India’s banking system is ‘highly resilient’

The Indian banking system is very strong, with a diversified liability structure and loan book among other factors, State Bank of India told CNBC.

“When we look at the liability structure, it is very diversified and it is very retail in our country. Also, when it comes to the loan book, it is very diversified,” the bank’s president Dinesh Kumar Kara told CNBC. Cheri Kong.

“I would say the Indian banking system is very robust,” he said, adding that India’s “regulatory oversight is very strict.”

While not seeing a contagion effect from the collapse of banks in the US and Europe, Gara added, many startups in India have started turning to Indian banks to stay afloat.

Additionally, SBI is forecasting a “decent growth” trajectory in its loan book against the backdrop of a growing Indian economy.

“Going forward, we expect almost similar trends in the banking system in the coming year as the Indian economy is poised for decent growth,” he said.

– Lee Ying Shan

4 hours ago

Hong Kong hiked base rate to 5.5% after central bank rate hike

Monetary Authority of Hong Kong It raised its base interest rate It remained at 5.5% following the US Federal Reserve’s moves to raise the federal funds rate to 5-5.25% on Thursday.

The city’s base rate follows a preset formula of 50 basis points from the lower end of the US federal funds rate or the average of the five-day moving averages of the overnight and one-month Hong Kong interbank offer rates, whichever is higher.

The Hong Kong dollar has been pegged to the greenback since 1983, and trades between $7.75 and $7.85 Hong Kong dollars per US dollar.

The base rate is set at 5.5% as the average of the five-day moving averages of overnight and one-month HIBORs is 3.28%, the HKMA said.

– Lim Hui Jee

4 hours ago

Australia’s trade surplus widened to AU$15.27 billion in March

Australia’s trade surplus stood at AU$15.27 billion ($10.2 billion) in March, up from AU$14.15 billion recorded in February. Government data Thursday showed.

The reading was above expectations for a decline to AU$12.65 billion in March, according to a Reuters poll.

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Exports driven by metal ores and minerals rose 3.8% month-on-month to A$59.3 billion, the country’s Bureau of Statistics revealed.

Imports rose 2.5% month-on-month to AU$44.02 billion, mainly due to non-industrial transport equipment.

– Lim Hui Jee

4 hours ago

China’s Caixin manufacturing PMI marks the first contraction in three months

China’s manufacturing activity slipped into contraction territory for the first time in three months. Index of Kaixin Manufacturing Purchasing Managers It was 49.5 in April.

The reading represents a decline from March’s 50.0 level and reflects a reduction in new orders.

“This suggests that China’s economic recovery has slowed significantly since the peak of Covid-19 infections earlier this year, with the index reading 51.6 and 50 in February and March, respectively,” Wang Xe, senior economist at Caixin Insight Group, said in a statement. .

However, businesses are hopeful that demand will pick up later in the year.

“Manufacturers were very optimistic, with their expectations for future production in April significantly higher than the long-term average, as they expressed strong confidence in market demand recovery and the implementation of related support policies,” Wang said.

– Jihye Lee

5 hours ago

China’s tourism shows rebound over Labor Day holiday

Domestic tourism in China saw traffic rise 70.8% year-on-year during its Golden Week, returning to pre-pandemic levels, Reuters reported.

Goldman Sachs economists said in a Thursday note, “Strong Labor Day holiday tourism data adds optimism to a recovery in consumption and services in the coming months and to the 2023 GDP growth forecast.” The firm estimates that China’s economy will grow at a full-year rate of 6% in 2023.

Xiangrong Yu, chief China economist at Citi, said inflation should be closely monitored.

“As supply capacity for some sectors begins to tighten, we think further demand expansion will lead to more hiring and inflationary pressure,” he said, adding that China’s recovery has not yet been inflationary.

HSBC added that recovery is yet to come for Chinese travelers.

“If you think the Chinese travel renaissance is over, we believe it’s just beginning,” they wrote in a note on Wednesday.

– Jihye Lee

5 hours ago

Asian currencies strengthen after central bank rate decision

Asia-Pacific currencies strengthened against the greenback as the US Federal Reserve signaled a possible end to its rate hike cycle.

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The offshore Chinese yuan rose 0.3% to 6.900 against the greenback on Thursday morning as the dollar index fell 0.24% to 101.102.

The Korean won strengthened 0.6% to 1,326.84 against the greenback and the Japanese yen gained 0.13% to 134.49 against the US dollar. The Australian dollar was flat and the New Zealand dollar also gained 0.24% to 0.6240.

– Jihye Lee

6 hours ago

Banking shares in Australia fell after National Australia Bank’s earnings missed expectations

Shares in major Australian banks fell on Thursday after National Australia Bank missed earnings expectations for the half-year ended March.

Revenue was AU$10.53 billion ($7 billion), up 19.3% year-on-year, while net profit was AU$3.97 billion, up 11.7% from the same period a year ago. NAB said.

According to Refinitiv data, NAB’s revenue missed estimates by 2% and earnings per share by 5.61%. Net profit was higher than expected by 2.31%.

Shares in NAB fell 7.57% on Thursday, while Commonwealth Bank of Australia and Westpac Banking fell 2.84% and 4.24% respectively. Macquarie Group fell 2.22%.

6 hours ago

China’s Caixin manufacturing PMI reading is expected to come in expansion territory

China’s Caixin Manufacturing Purchasing Managers’ Index is expected to remain in expansion territory in April, according to a Reuters poll of economists.

After registering 50.0 in March, the reading is forecast to rise to 50.3 in April, the poll showed.

China’s National Bureau of Statistics disappointed over the weekend after producing PMI data that fell below the 50-point line that separates growth and contraction at 49.2.

– Jihye Lee

13 hours ago

The central bank raises rates

The central bank raised rates for the 10th time in this tightening cycle, widely expected. The central bank signaled a pause in the campaign.

“In determining the extent to which additional policy stabilization is appropriate to bring inflation back to 2 percent over time, the overall tightening of monetary policy, the impact of monetary policy on economic activity and inflation, and economic and economic and financial developments,” the central bank said in a statement.

The Fed also removed a sentence from an earlier announcement that said “the Committee expects some additional policy stabilization to be appropriate” for the Fed to achieve its 2% inflation target.

For more, check out CNBC’s Fed Live Blog.

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– Fred Imbert, Jeff Cox

11 hours ago

Regional bank stocks fell after Powell’s comments

6 hours ago

CNBC Pro: Morgan Stanley’s Slimman says it’s dangerous to be too defensive and names top ‘offensive’ stock picks

Andrew Slimman of Morgan Stanley Investment Management says now is the time to buy some “offensive” stocks.

“So I think it’s very risky to have very defensive stocks … I think you want some offense in your portfolio,” Slimmon told CNBC’s “Squawk Box Asia” on Tuesday.

He explains why and names stocks to buy.

CNBC Pro subscribers can read more here.

– Weissen Don

6 hours ago

CNBC Pro: How to trade Volkswagen and BMW quarterly earnings based on history

Germany’s Volkswagen and BMW are due to report their first-quarter earnings later Thursday.

Going forward five years using data from FactSet, CNBC Pro has evaluated how well the automaker’s stock has performed against benchmark indices based on different outcomes of their quarterly earnings reports.

CNBC Pro subscribers can read more here.

– Ganesh Rao

12 hours ago

The dollar was the lowest in the session

The dollar index, which tracks the greenback’s performance against six other global currencies, fell more than 0.7% to a session low of 101.07 on Wednesday. This is the lowest level since April 16.

The move comes as Fed Chair Jerome Powell answers questions following the Fed’s latest policy decision.

Check out the chart…

DXY on Wednesday

-Fred Imbert, Gina Francola

19 hours ago

WTI crude prices fell to their lowest level since March

WTI crude (JUN) fell 3.07% to $69.46 as of 7:28 am on Wednesday. This marked the lowest price level for WTI crude since March 27, when it fell to $69.13.

WTI crude is down nearly 9.5% year to date, having lost nearly 13% in its worst week since March 17.

The Energy Select Sector SPDR Fund (XLE) is down 6.6% for the week to date, its worst week since March 17 when it lost 6.85%. Energy groups Halliburton and ExxonMobil have lost 10.4% and 8.4% respectively this week.

Check out the chart…

WTI crude and energy prices have fallen this week

– Hakyung Kim, Gina Francola

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