Hong Kong stocks rose more than 4% as technology stocks rose; Chinese activity data is disappointing

One expert says fertilizer is key to getting the Black Sea grain deal started again

A greater focus on fertilizer will help lower the global cost of food and secure an extension of the Black Sea Agreement, said Michael Vatikiotis, senior advisor at the Center for Humanitarian Dialogue.

He explained that 70% of fertilizer production facilities in Europe are idle due to insufficient ammonium nitrate, of which Russia produces a quarter of the world’s production.

“I think what Russia is looking for is more concern on the part of the international community about the demand for fertilizer, so that it can kind of implement this deal,” Vatikiotis said, adding that more focus on fertilizer is needed to make that happen. Reducing the global cost of food.

– Lee Ying Chan

Japan’s monetary policy will not change over the next 9-12 months: Monex Group

Japan's monetary policy

Jesper Cole of Monex Group told CNBC after Japan released its third-quarter GDP estimates, the Bank of Japan will remain a “bastion of stability” for nearly another year because the output gap in the economy remains.

He said the GDP figures, which came in below expectations, underscore “how sensitive the Japanese consumer is in a negative way” to the current environment.

Beyond the next 12 months, Cole said, the central bank will need to pay attention to whether the US economy ends up in a soft landing or a hard landing.

He added that he is watching whether the Japanese government is able to come up with a structural industrial policy that encourages the business community to stick to their investment spending.

– Abigail Ng

Primavera Capital says there is enormous value in some Chinese technology stocks

Shares of large Chinese technology companies are “very low” and “cheap,” said Fred Ho, founder and chairman of Primavera Capital.

Hong Kong’s Hang Seng Tech is down more than 30% since the start of the year, though the index has rebounded in recent weeks.

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Hu said the Chinese government’s crackdowns and no-Covid policy had undermined the confidence of tech entrepreneurs and investors, but there was “enormous deep value” in some tech stocks.

China is a country that any other successful country needs [for] Technology and innovation… I think there’s an upside” to many of these stocks, he added.

Charmaine Jacob

Hong Kong-listed Chinese technology shares jumped early in the session

Shares of Chinese technology companies listed in Hong Kong rose significantly in the first hour of trading.

Tencent increased by 7.6%, Mitwan gained 5.9% and Ali Baba rose 9%. Hang Seng Tech rose about 4%.

The moves come despite disappointing activity and retail sales data from China, and after US President Joe Biden and Chinese President Xi Jinping. Meeting Before the G20 summit in Bali.

John Rutledge, chief strategist at private investment firm Savannad, said the discussion between the two leaders went “much better” than expected, though he attributed that mostly to lowered expectations.

The Biden-Jinping meeting went much better than I expected, says Svanad's Rutledge

TSMC stock jumped more than 9% on news of the Berkshire Hathaway stake

shares Taiwan Semiconductor Industry Corporation Listed in Taiwan jumped after Berkshire Hathaway revealed a 4 billion dollars in the company.

The stock rose as much as 9.44%, reaching its highest level in nearly two months.

Berkshire added more than 60 million shares of American Depositary Receipts for the Taiwanese chip maker, valued at $4.1 billion (1.2% of TSM) by the end of the third quarter, making Taiwan quasi-conglomerate the tenth largest holding at the end of September.

The stock was last up about 8%.

China’s industrial output, retail sales missed expectations in October

China’s industrial production grew 5% in October from a year ago, slowing from a 6.3% increase in September. The latest figures were different from the 5.2 percent increase estimated in a Reuters poll.

Separately, retail sales in China fell 0.5% in October from a year ago, missing expectations.

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Analysts polled by Reuters had expected a 1% increase, and retail sales grew 2.5% in September.

– Abigail Ng

CNBC Pro: A Morningstar Strategist Says Stocks Are Undervalued 15% and Shares 6 Favorites

With so many stocks in a bear market, stocks could be undervalued by as much as 15%, according to Morningstar.

The chief US strategist at the equity research firm believes that the headwinds that existed earlier in the year will begin to recede at the beginning of next year and will benefit stocks.

Dave Sequeira also shared his “fair value” assessment of six companies with a “broad economic moat” that would outperform in such an economic environment.

CNBC Pro subscribers can read more here.

– Ganesh Rao

The Australian central bank is hinting at more rate hikes in the future

The Reserve Bank of Australia has hinted at more and possibly larger interest rate hikes to come in its efforts to tame inflationary pressures, according to the Minutes Released from its last meeting.

“The Board agreed on the importance of returning inflation to the target and expects to increase interest rates further during the coming period,” he said in the statement.

The central bank said it considered raising interest rates by 50 basis points, but saw a stronger case for a 25 basis point rate hike.

The RBA said the higher interest rates would be part of a broader effort to “establish a more sustainable balance of demand and supply in the Australian economy,” adding that members did not rule out the possibility of a return to greater heights if necessary.

– Jihe Lee

Data shows that the Japanese economy contracted unexpectedly in the third quarter

CNBC Pro: China eases its COVID-19 measures. Here’s how the market pros play it

What stocks could benefit if China backtracks on its “zero covid” policy? Market pros reveal how reopening will play out as China relaxes some of its virus controls.

Professional subscribers can Read more here.

– Xavier Ong

Stocks off session lows on Brainard’s comments

The S&P 500 rebounded from its lows and the Treasury yields pulled back from their highs slightly late in the morning after Fed Vice Chairman Lyle Brainard He said It may be appropriate “soon” to slow the pace of rate hikes, in conversation with Bloomberg News.

The S&P 500 recently fell 0.1%, after falling more than 0.7% at one point on Monday. The 10-year Treasury note rose 5 basis points to 3.878%, after trading as high as 3.90% earlier.

“I think the really important thing to emphasize is that we’ve done a lot but we have additional work to do in terms of raising interest rates and maintaining restraint to bring inflation down to 2% over time,” Brainard added.

—John Milloy, Jeff Cox

Fed’s Key Message to Markets: Rates End Point ‘Still a Way Out’

Fed Governor Christopher Waller said that while the central bank may raise interest rates at a slower pace next month, this should not be interpreted as a weak signal in its battle to bring down inflation.

“Stop paying attention to the pace and start paying attention to where the end point is going to be. And until inflation is lowered, that end point is still the avenue,” he said. Waller said on Sunday.

Earlier this month, the Fed raised interest rates by 75 basis points the highest level since 2008.

– Fred Imbert

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