Hong Kong shares fall 2%, leading losses in mixed Asia trade after John Lee’s speech

It is still too early to buy real estate shares and physical property in Hong Kong, said GROW Investment Group chief investment officer William Ma.

Speaking on CNBC’s “Street Signs Asia,” Ma said short-term investors would have to “wait and see” if Hong Kong leader John Lee talent attraction policies will draw people back to the city-state.

In addition, Ma expects property and share prices to fall due to weak demand, adding that what Hong Kong needs is “a real economic rebound.”

Ma also said Hong Kong’s financial importance will remain and Chinese companies still prefer to be listed on Hong Kong markets.

— Lee Ying Shan

Shares of Hong Kong-listed tech companies and electric vehicle manufacturers continued to trade lower during Hong Kong leader John Lee’s political speech, dragging the overall index lower along with shares of Hong Kong casinos. Macau.

Xpeng Engines fell 8.24%, bilibili fell 4.2%, and Meituan it also fell 3.64%. Tencent Y alibaba it also fell more than 2.5%.

Macau casino shares also fell, with MGM China falling 3.84% and Wynn Macau decreasing 4.15%.

Meanwhile, real estate shares cut earlier gains. Country Garden rose 0.7% after trading more than 4% before Lee’s speech.

China’s overseas land and investment it rose 2.25% after rising 5% earlier.

–Ji Hye Lee

A top executive at Kakao Corp. reduce after a data center fire caused a massive outage over the weekend and interrupted services for the 53 million users of its messenger around the world.

Co-CEO Namkoong Whon apologized after the interruption and said he would resign.

“I feel a heavy burden of responsibility for this incident and I will step down from my position as CEO and lead the emergency disaster task force that will oversee the aftermath of the incident,” Namkoong told a news conference at the company’s office in the outskirts of Seoul. on Wednesday.

Kakao shares traded 2.43%, down slightly after the press conference.

–Ji Hye Lee

Shares of Hong Kong-listed real estate companies rose in the morning ahead of Chief Executive John Lee’s policy speech.

China’s overseas land and investment rose 5% CK asset 2.75% and chinese land added 2.5%. country garden it also added 4.26% before Lee’s speech.

Local Hong Kong media reports that foreign owners can receive discounts on the buyer’s stamp duty.

— Abigail Ng

Shares of Apple suppliers in Asia fell after the tech company allegedly asked a manufacturer in China to halt production of an iPhone 14 Plus component while Apple reassesses demand for the product.

Information reported that two other vendors that assemble modules from that component have also drastically reduced production.

LG Innotek and SK Hynix in South Korea lost about 2%, while Japan TDK Corporation Y Murata Manufacturing shed more than 1% each.

of Apple Stocks briefly lost $4 a share overnight, but closed the regular session 0.94% higher as major indices gained.

— Abigail Ng

It’s been a choppy year for gold, with the precious metal “torn between growth and inflation risks and higher real rates and a strong dollar,” Goldman analysts wrote in an Oct. 1 report. 11 note.

“In our view, there remains a lot of uncertainty surrounding the future path of inflation, growth, rates and the US central bank’s (CB) reaction functions.”

Goldman ran four different economic scenarios and predicted where gold prices might end up in each case.

CNBC Pro subscribers can read more here.

futures of West Texas Intermediate Crude were up about $1, or 1.33%, and futures for Brent oil rose $0.83, or 0.92%, as the Biden administration is expected to release more oil from the US Strategic Petroleum Reserve.

The plan could be announced on Wednesday, sources told CNBC.

The move aims to extend SPR’s current delivery schedule, which began this spring, through December, the sources said.

–Kayla Tausche, Jihye Lee

ANZ economists expect the Reserve Bank of New Zealand to offer a hike of 75 basis points each at its upcoming meetings in November and February.

New Zealand’s central bank raised interest rates by 50 basis points to 3.5%. earlier this monthtaking the cash rate to a seven-year high.

ANZ said the Reserve Bank of Australia is likely to take a more conservative path than the RBNZ, resulting in a “much wider spread policy going forward in 2023”.

The next RBNZ monetary policy meeting is scheduled for November 1. 23

–Ji Hye Lee

Apple shares fell and briefly turned negative after a report by The Information that the tech giant was cutting production of its new iPhone 14 Plus.

The move by Apple, the largest US stock, brought the major averages back near their lows for the day, though they have since regained some of that ground.

The Fed is widely expected to raise another three-quarters of a percentage point next month, but the central bank may be reaching its limit for dictating long-term interest rates, according to Jim Paulsen of The Leuthold Group.

“There is considerable precedent in past tightening cycles in which the Fed was shut down by the bond market ‘blinking’ first. At this point, longer-dated bonds may simply stop rising and refuse to follow suit.” the Fed,” Paulsen wrote in a note to clients on Tuesday.

The 10-year Treasury yield has traded above 4% in recent days, hitting its highest levels in more than a decade. With growing concern about a recession in 2023, it may be close to a ceiling, Paulsen said.

“Every time the Fed tightens monetary policy further, recession fears increase relative to inflation fears. Ultimately, as the Fed becomes increasingly aggressive, recession becomes a bigger concern.” than inflation, and bond buyers start to outnumber bond sellers, meaning the bond market flickers,” added Paulsen.

—Jesse Libra