Asia markets fall as investors parse Australian central bank minutes

Soegeefx AppsAsia MarketAsia markets fall as investors parse Australian central bank minutes

Lim Hui Jie & Lee Ying Shan

Asia-Pacific markets fell across the board as traders parsed minutes from the Reserve Bank of Australia for its policy meeting on Sept. 5 where the bank had said that inflation in the country is still “too high.”

The bank had said that further policy tightening may be required if inflation is more persistent than expected.

In Australia, the S&P/ASX 200 fell 0.47%, while both South Korea’s Kospi and Kosdaq were down 0.74% and 0.98% respectively.

Japan’s Nikkei 225 slumped 1.09% upon its return from a public holiday, while the Topix saw a smaller loss of 0.26%. Hong Kong’s Hang Seng index dipped 0.21%. The CSI 300 lost 0.31%.

.N225 Nikkei 225 Index *NIKKEI 33242.59 -290.5 -0.87
.HSI Hang Seng Index *HSI 17997.17 66.62 0.37
.AXJO S&P/ASX 200 *ASX 200 7196.6 -33.8 -0.47
.SSEC Shanghai *SHANGHAI 3124.96 -0.98 -0.03
.KS11 KOSPI Index *KOSPI 2559.21 -15.51 -0.6
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 8396.04 -3.01 -0.04

Overnight in the U.S., all three major indexes were little changed as traders awaited the U.S. Federal Reserve’s rate decision due Thursday morning in Asia.

Traders are assigning a 99% chance that the central bank stays put when it releases its rate decision, according to the CME Group’s FedWatch tool.

The S&P 500 inched up 0.07%, while the Nasdaq Composite eked out a 0.01% gain. The 30-stock Dow Jones Industrial Average edged up 0.02%.

— CNBC’s Hakyung Kim and Alex Harring contributed to this report.

RBA concerned that inflation is too high, but will allow more time for tightening effects to take hold

Australia’s central bank is still of the position that inflation in the country is “too high,” but opted to hold its benchmark policy rate at 4.1% in its last meeting.

Minutes from the Reserve Bank of Australia revealed that the board debated between raising rates by 25 basis points, or leaving it unchanged.

In the end, the case for leaving the rate unchanged was the stronger one, with the RBA saying “the recent flow of data was consistent with inflation returning to target within a reasonable timeframe while the cash rate remained at its present level.”

The bank also added that more time should be allowed to see the effects of monetary policy tightening since May 2022.

However, the RBA also said that some further tightening in policy may be required, should inflation prove more persistent than expected.

— Lim Hui Jie

Oil prices continues to push 10 month highs

Oil futures hit their highest levels in a year as expectations of a supply deficit continued to send prices to nearly $95 a barrel on Tuesday.

U.S. West Texas Intermediate crude gained more than 1% and hit $92.43, its highest level since Nov. 4, while Brent crude futures reached $94.77, its highest level since Nov. 16 when it traded as high as $94.79.

Prices have risen for three consecutive weeks, and Reuters reports that prices are on track for their biggest quarterly increases since Russia’s invasion of Ukraine in the first quarter of 2022.

Earlier this month, Saudi Arabia and Russia extended a combined supply cut of 1.3 million barrels per day to the end of the year.

— Lim Hui Jie

CNBC Pro: Rates are rising in Europe. HSBC names the region’s ‘most and least vulnerable stocks’

The European market has been weighed down by a spike in corporate lending rates.

“Our economists expect the bulk of the interest rate headwinds to emerge over the next eighteen months or so,” HSBC analysts said in a Sept. 15 note.

CNBC Pro takes a look at the bank’s two screens of “the most and least vulnerable” stocks: one for “cash-rich” companies and the other for “high leverage” names.

— Amala Balakrishner

Goldman Sachs says the Fed is done hiking even if the dot plot shows differently

The Federal Reserve is done hiking this year, even if the dot plot that’s set to release this week shows one more increase, according to Goldman Sachs.

“On November, we think that further labor market rebalancing, better news on inflation, and the likely upcoming Q4 growth pothole will convince more participants that the FOMC can forgo a final hike this year, as we think it ultimately will,” the firm’s chief economist Jan Hatzius wrote on Saturday.

“But we expect the dot plot to show a narrow 10-9 majority still penciling in one more hike, if only to preserve flexibility for now,” he added.

The dot plot shows where individual members expect to see rates trending over the next several years. The Fed concludes its two-day policy meeting Wednesday.

— Sarah Min

CNBC Pro: Morgan Stanley says higher oil prices could boost 2 global commercial real estate stocks

The recent increase in oil prices could provide a boost to London’s prime office real estate market, according to Morgan Stanley.

The Wall Street bank explained the newly discovered correlation between the sectors and named the two stocks expected to benefit from the trend.

— Ganesh Rao

Oil prices rise Monday on worries of tighter supply

Oil prices edged higher as investors weighed the prospect of a widening supply deficit in the fourth quarter.

U.S. West Texas Intermediate crude gained more than 1% early Monday and hit a high of $91.70, the highest level since Nov. 8, 2022 when WTI traded as high as $92.17. So far this quarter, WTI has gained 29.8%, putting it on pace for the first positive quarter in three quarters.

Brent crude futures hit a high of $94.78, also hitting its highest level since Nov. 16, 2022 when it traded as high as $94.79.

The VanEck Oil Services ETF (OIH) gained 0.9% in premarket trading, led by Dril Quip, Liberty Energy and Transocean

which were all higher by more than 1.5%.

— Pia Singh, Gina Francolla

CNBC Pro: Analysts name 2 stocks to play the $104 billion EV charging industry — giving one 95% upside

Public electric vehicle charging infrastructure remains “critical” in driving further EV adoption, said analysts at investment bank TD Cowen.

The bank concluded that the world will require a “massive and rapid” buildout of charging infrastructure and installation that it estimates would require a total U.S. investment of $104 billion through 2030.

Here are some areas that will take up the bulk of that opportunity, as well as stocks that could benefit, according to TD Cowen.

— Weizhen Tan

Oil services, energy, utilities huge outperformers in September

Oil service, energy and utility stocks are huge outperformers so far in September, and the gains for oil services and energy in the third quarter are even more dramatic.

Month to date, oil service stocks (as reflected in the VanEck Oil Services ETF [OIH]) are up 5.2%, S&P 500 Energy by 4.2% and even S&P 500 Utilities by 3%. The S&P 500

is down 1.1% in September.

Quarter to date shows an even wider disparity: Oil services are up 24.7%, Energy is up 13.2%, the S&P 500 is higher by less than 0.2% and utilities are down 1.7%.

Energy was the best performing S&P 500 sector in Monday’s session with a 0.7% gain.

P.S. Don’t look now, but Nvidia is almost 11% lower in September and Taiwan Semiconductor

is down 12% in the third quarter.

— Scott Schnipper

Apple leads Dow higher

Apple led the Dow higher in Monday’s session as investors cheered Wall Street’s take on new iPhone demand.

Both Morgan Stanley and Goldman Sachs said they had positive outlooks for demand for the new iPhone. Specifically, Morgan Stanley called preorder data “better than feared.”

Shares of the big-technology stock climbed 2.5% in Monday’s session. Visa, Travelers, Honeywell and Intel

were also among the top performers with all up more than 1%.

American Express and Boeing restricted gains for the blue-chip average with losses of more than 2% and 1%, respectively. As a whole, the 30-stock index was up about 0.2% around 1:45 p.m. ET.

— Alex Harring

Source : cnbc

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