China’s factory activity data misses expectations; Asia-Pacific markets mixed

Soegeefx AppsAsia MarketChina’s factory activity data misses expectations; Asia-Pacific markets mixed

Abigail Ng

Asia-Pacific shares were mixed on Wednesday ahead of the release of data on China’s November factory activity came in lower than expected, seeing a contraction for the second month in a row.

Hong Kong’s Hang Seng index traded 0.93% higher, the Shanghai Composite fell 0.16%, while the Shenzhen Component was 0.4% higher.

Chinese health officials on Tuesday announced measures to boost vaccination among the elderly, an indicator which is seen as important for reopening the economy, while saying it is “closely watching the virus” for developments when asked if the ongoing unrest would lead to a shift in its zero-Covid policy.

.N225 Nikkei 225 Index *NIKKEI 27859.47 -168.37 -0.6
.HSI Hang Seng Index *HSI 18115.77 -88.91 -0.49
.AXJO S&P/ASX 200 *ASX 200 7275 21.7 0.3
.SSEC Shanghai *SHANGHAI 3142.92 -6.82 -0.22
.KS11 KOSPI Index *KOSPI 2439.66 6.27 0.26
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 7778.15 -42.2 -0.54

In Australia, the S&P/ASX 200 pared earlier losses and traded 0.4% higher after its monthly inflation indicator showed some slowing for October. The Nikkei 225 in Japan fell 0.6% and Topix slipped 0.62%.

South Korea’s Kospi reversed losses to rise 0.51%. The MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.4% higher.

Japan’s Fast Retailing and electric-vehicle maker Xpeng are set to report earnings, and Fed Chair Jerome Powell will be delivering a speech at the Brookings Institution on Wednesday.

Overnight in the U.S., major indexes ended the session lower.

South Korea, Japan industrial production data comes in worse than expected

South Korea and Japan’s industrial production each saw declines for the month of October.

Japan’s preliminary industrial production for October declined 2.6% compared to a month ago, more than expectations of a decline of 1.5%, according to a Reuters poll.

The reading marks the second consecutive decline after seeing a fall of 1.7% the previous month.

South Korea’s industrial production also fell by 3.5% compared with a month ago, also lower than expectations of a decline of 1%. The reading marked the lowest since May 2020, when output declined 6.7%.

– Jihye Lee

China’s factory activity expected to contract for a second straight month

China’s official manufacturing Purchasing Managers’ Index for November is expected to come in at 49, below the 50-point mark that separates growth from contraction, according to analysts polled by Reuters.

That’s slightly lower than the reading of 49.2 reported in October.

PMI readings are sequential and represent month-on-month changes in activity.

— Abigail Ng

China says it is ‘closely watching’ virus developments when asked about shift in policy

Chinese health authorities said that officials are “closely watching” the developments of Covid when asked if protests in the region would lead to shifts in its zero-Covid policy.

“China has been following and closely watching the virus as it evolves and mutates,” officials said, according to a translation of Tuesday’s briefing.

– Christine Wang, Evelyn Cheng

CNBC Pro: Goldman Sachs’ Currie says oil stocks are trading ‘far below’ their long-term trend

Goldman Sachs’ Global Head of Commodities Research Jeff Currie told CNBC that historically, oil stocks have traded at a much higher premium to crude oil prices compared to current price levels.

For instance, the price gap between SPDR Oil & Gas ETF and ICE Brent Crude futures contract was about $66.60 on Tuesday. That’s significantly lower than the $104 gap recorded at the start of January 2017, according to Koyfin data, as the chart below shows.

Currie told CNBC what he thinks could happen next to energy stocks.

— Ganesh Rao

China announces measures to boost elderly vaccination

China’s health authorities released a plan to boost elderly vaccination, according to a notice on the National Health Commission’s website.

Hong Kong-listed shares of CanSino Biologics extended gains in the afternoon session and rose as much as 18% shortly after the announcement was posted.

The notice said authorities should use multiple data points to accurately identify target groups for vaccination for the elderly.

CanSino Biologics rise Chart

Jihye Lee

CNBC Pro: As Wall Street gets bearish, these stocks with margin growth could be safe bets

Wall Street pros are worried about the outlook for stocks, and are urging investors to stay defensive. These stocks with margin growth could be safe bets.

— Zavier Ong

Nasdaq and S&P 500 post third day down

The Dow Jones Industrial Average closed 3.07 points, or 0.01%, higher after trading down for much of the day. The index ended the day at 33,852.53.

Meanwhile, the Nasdaq Composite finished lower by 0.59%, to close at 10,983.78. The S&P 500

slipped by 0.16% to close at 3,957.63.

— Alex Harring

Source : CNBC

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