HSBC says China’s latest inflation readings allow PBOC to maintain accommodative monetary policy
China’s latest inflation figures give the People’s Bank of China room to maintain its current monetary stance, HSBC said in a note.
“Moderation in price pressures gives the PBOC room to remain accommodative,” said China’s senior economist Erin Xin.
Xin added that the central bank is likely to further facilitate the use of structural tools such as “additional re-lending fees for focus areas such as manufacturing and green investment.”
—Ji Hye Lee
China’s consumer price index rises 2.5% in August, misses estimates
China Consumer Price Index rose 2.5% year-on-year in August, lower than the 2.7% figure recorded in July, data from the Office for National Statistics showed, below a Reuters poll forecast of 2.8%.
Producer prices rose 2.3% in the month, also slower than July’s 4.2% increase and missing estimates of 3.1%.
A Nomura report earlier this week said 12% of China’s total GDP was affected by Covid controls on a weighted basis, compared to 5.3% last week.
The worst is not over for the Japanese yen, says analyst
The depreciation of the Japanese yen is one of the most “rigorous” and “easiest” movements to explain because it is “based on real fundamentals,” Monex Group director Jesper Koll told CNBC, adding that it could fall further in the next few months.
It’s the “most textbook-driven currency move I’ve seen in 30 years,” he said.
Koll pointed to the US-Japan interest rate differential as one of the “powerful forces” that will move the yen, adding that the chance of the Bank of Japan raising rates is “almost nil.”
CNBC Pro: Uranium is ‘in a tear’ right now. Here are two ETFs to play it
A niche area of the commodity market, uranium, has been a bright spot over the past month, outperforming even the energy sector as a whole.
Two ETFs have risen in recent weeks as the West works to reduce its reliance on Russian energy.
— Weizhen Tan
Bilibili plummets 16% at the open after reporting losses in the second quarter
Hong Kong-listed shares of a Chinese video game and gaming company bilibili it plunged more than 16% at the open after reporting a loss on its second-quarter earnings overnight.
The company reported a net loss of more than $300 million. — nearly double the amount of loss reported for the same period a year ago.
However, Citi Research’s China Internet and Media Vice President Brian Gong was optimistic, saying regulatory concerns about the country’s gaming industry are easing.
Pointing to the government’s resumption of gaming licenses, Gong said that “although their number is lower than expected, it shows that the environment is improving,” he told CNBC’s “Squawk Box Asia,” adding that “the worst it’s over.”
—Ji Hye Lee
CNBC Pro: Citi Just Updated Eight Chinese Stocks
China’s “economic recovery appears to be slower than market expectations,” Citi stock analysts said in a Sept. 2 report. 2 report.
They downgraded 12 Chinese stocks, but improved eight. Here are three actions from its up-to-date list of the top Hong Kong and mainland traded stocks to buy.
Professional subscribers can read more here.
— evelyn cheng
US stock futures open little changed
US stock futures opened little changed after a choppy session in major averages as Wall Street considered the pace of future interest rate hikes.
Dow Jones Industrial Average futures were up 23 points, or 0.07%. S&P 500 and Nasdaq 100 futures rose 0.08% and 0.13%, respectively.