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Sunday, November 20, 2022

Hong Kong stocks fall 2% in Asia session; China keeps benchmark lending rates on hold - CNBC

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Hong Kong movers: Reopening and tech stocks drop as China reports Covid-related deaths

Japan trading houses rise as Berkshire Hathaway reportedly boosts stake

Shares of some Japanese trading houses rose early in the Asia session, despite retreats in the region's markets, after billionaire Warren Buffett's Berkshire Hathaway boosted its stake in the firms, according to individual regulatory filings.

Berkshire raised its stake by more than 1 percentage point in Mitsubishi, Mitsui & Co, Itochu, Marubeni and Sumitomo to hold over 6% in each of the firms, the filings showed.

Japan-listed shares of Mitsubishi rose 1.89% in the morning session, Marubeni rose 2.12% and Sumitomo rose more than 1%. Itochu also rose 0.84% and Mitsui inched 0.16% higher.

This comes days after Berkshire Hathaway disclosed it increased its holdings of Taiwan Semiconductor Manufacturing Company's American depositary receipts, causing Taiwan-listed shares of the company to soar more than 10% in the Asia session.

— Jihye Lee

China keeps its loan prime rates on hold as expected

China left its benchmark lending rate unchanged for a third month in a row, according to an announcement from the People's Bank of China.

The one-year loan prime rate is steady at 3.65%, and the five-year rate is also on hold at 4.3%, the notice said.

— Abigail Ng

South Korea saw exports drop further in first 20 days of November

South Korea's exports for the first 20 days of November fell 16.7% on an annualized basis, with demand from China lagging, according to data from the customs agency.

The slump in exports is a sharp drop from the 5.5% fall seen in October compared to the same period a year ago.

Imports also dropped 5.5% for the first 20 days of November, resulting in a slight improvement in the trade deficit — $4.4 billion for the period, compared with a deficit of $4.9 billion reported in October.

The country has recorded a total of $40 billion in trade deficit year-to-date, statistics from the agency showed.

— Jihye Lee

CNBC Pro: Morgan Stanley's Mike Wilson predicts the S&P 500's bottom, calls it a 'terrific buying opportunity'

Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson says we're in the "final stages" of the bear market, but the situation will remain challenging for a while longer.

He predicts when — and at what level — the S&P 500 will hit a "new low."

CNBC Pro subscribers can read more here.

— Weizhen Tan

China is expected to hold its benchmark lending rates steady, Reuters poll says

China's central bank is expected to keep its one-year and five-year loan prime rates on hold, according to analysts polled by Reuters.

The one-year rate currently stands at 3.65%, and the five-year LPR is at 4.3%.

The People's Bank of China last cut both rates in August.

China's offshore yuan was weaker at 7.1376 against the U.S. dollar ahead of the decision early Monday.

— Abigail Ng

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, are 'deeply undervalued'

This year's 30% decline in the value of Chinese Big Tech stocks, such as Alibaba, has made them "incredibly cheap," according to investment bank China Renaissance.

Its head of equities, Andrew Maynard, not only believes that the stock market appears to have bottomed, but also that investors may miss out on a rally if they remain underweight on China.

"Without a shadow of a doubt, being underweight China is going to cost you going forward," Maynard said.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Markets are watching for more clues on Fed hikes and the economy in the week ahead

Investors may be a bit more cautious in the week ahead, with stocks seeking direction in quiet trading and the bond market's warnings about recession getting louder.

The Thanksgiving holiday on Thursday should mean markets will likely be quiet Wednesday and Friday. Traders will be monitoring reports on Black Friday holiday shopping for feedback on the consumer.

"It's really a week where data dependence is the key phrase," said Julian Emanuel, senior managing director at Evercore ISI. "The bias [for stocks] is higher unless data continues to deteriorate and the Fed stays on its hawkish slant... which has clearly been reinforced in the last 48 hours."

Check out our full deep dive on what to expect in the week ahead here.

— Patti Domm, Tanaya Macheel

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Hong Kong stocks fall 2% in Asia session; China keeps benchmark lending rates on hold - CNBC
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