Hong Kong shares up 2%; China reports inflation data in line with expectations

Hong Kong shares up 2%;  China reports inflation data in line with expectations
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Chipmaker TSMC says November net revenue was up 50% from a year earlier

Hong Kong Motors: Real Estate, Tech Stocks Rise on Reopening Optimism

CNBC Pro: Wall Street says a recession is coming. An investment professional names her favorite stocks to resist

Wall Street professionals are increasingly sounding the alarm about a looming recession.

As economic growth slows and inflation stays high for longer, how should investors position themselves? Veteran investor Nancy Tengler shares her favorite dividend stock with CNBC.

Professional subscribers can read more here.

—Zavier Ong

There’s confusion, optimism over China moving away from zero-Covid: British Chamber of Commerce

Beijing’s “U-turn” on Covid policies is generating confusion and optimism, said Steven Lynch, managing director of the British Chamber of Commerce in China.

“There’s a lot of optimism and hope for 2023, but there’s a lot of confusion,” he told CNBC’s “Squawk Box Asia,” describing the departure from strict Covid rules as happening “almost overnight.”

He said there may still be “huge inconsistencies” between local policies and central government rules, and people continue to worry about getting sick.

“One thing is very clear: the covid is now here. Covid is quite common here in Beijing. And I think that brings a whole new set of challenges to what China will face,” she said.

—Abigail Ng

Credit Suisse says inflation is not yet a problem in China

China’s inflation is likely to stay below 3% in the next 12 to 18 months, and the central bank is comfortable with this range, according to Jack Siu, Credit Suisse’s chief investment officer for Greater China.

“We don’t think CPI is going to be a problem in China, in fact it will be stable within this 1-3% range for the foreseeable future,” he told CNBC’s “Street Signs Asia.” Inflation soared in many economies, but consumer prices in China remained subdued due to weak demand.

But China is likely to see “a resurgence in consumer activity” in the next six months as people get used to living with the virus after some ups and downs in reopening the economy, Siu said.

“In the second quarter, we expect GDP to rise to 6.1%, partly because of basic effects, partly because people are living more normally,” he said.

—Abigail Ng

China producer prices fell in November, while consumer prices rose

China’s Producer Price Index fell 1.3% in November from a year earlier, extending its decline after losing 1.3% in October and slightly beating estimates for a 1.4% contraction in a Reuters poll.

The nation’s consumer price index rose 1.6% in November on an annualized basis, in line with expectations and declining from October’s reading of 2.1%.

The Chinese yuan on land and abroad strengthened and settled at around 6.94 to the dollar shortly after the release of economic data.

—Lee Yingshan

CNBC Pro: These 4 global consumer tech stocks are poised to win as China reopens, says HSBC

Some global consumer technology companies could gain as China relaxes some Covid-19 restrictions, and shares in four companies could rise by more than 40%, according to HSBC.

The Asia-focused bank said a faster-than-expected recovery in consumer electronics in the coming months would benefit these companies.

CNBC Pro subscribers can read more here.

—Ganesh Rao

South Korea posts lower current account surplus in October

South Korea posted a current account surplus of $880 million in October, down from $1.6 billion in September.

Direct investment assets in South Korea increased by $2.75 billion, compared with $4.74 billion a month ago. Direct investment liabilities increased from $430 million to $810 million.

South Korea has been posting a current account surplus for the year, except for the months of July and August. A current account surplus indicates that a country sells more to the world than it buys outside its borders.

—Lee Yingshan

Stocks end higher, S&P 500 breaks 5-day losing streak

Stocks closed higher, with the S&P 500 snapping its longest losing streak since October.

The S&P added 0.75% to close at 3,963.51. The Dow Jones Industrial Average gained 183.56 points, or 0.55%, to close at 33,781.48, while the Nasdaq Composite rose 1.13% to close at 11,082.00.

—Samantha Subin

Interest rates on 30-year fixed-rate mortgages fall

The cost of financing a home has dropped for the fourth week in a row, according to Freddie Mac.

The average weekly rate on a 30-year mortgage is now 6.33%, down from 6.49% last week. Over the past month, the interest rate on these loans has dropped by about 75 basis points: November 1. On January 10, the average rate on a 30-year fixed mortgage was 7.08%.

Even with the short-term decline, the cost of financing a home loan has risen significantly from a year ago. Last year at this time, the rate on a 30-year mortgage averaged 3.1%.

Despite falling rates, the demand for home loans continues to fall. Mortgage application volume it fell 1.9% last week, compared with the week before, according to the Mortgage Bankers Association.

Darla Mercado, Diana Olick

Part of the yield curve is now more inverted since 2001

The inversion of the 3-month, 10-year Treasury yield curve is now the deepest since January 2001 at nearly 90 basis points, according to CNBC data. The short end of the curve shot up to 4.30% from just 0.05% at the start of the year as traders priced in higher interest rates.

The yield curve inverts when short-term Treasury rates rise above long-term yields. Many economists view the 2-year to 10-year portion of the yield curve as more predictive of a possible recession.

Cathie Wood noted that part of the yield curve, which is the most invested since the early 1980s. The popular investor said the bond market is signaling that the Federal Reserve is making a “big mistake” with its jumbo rate hikes.

—Yun Li

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