Hang Seng Index falls over 2%, dragged by consumer cyclicals
Hong Kong’s Hang Seng Index fell more than 2%, dragged by the consumer cyclicals sector. E-commerce giant JD.com slumped as much as 12% to its lowest in a year, leading the index’s losses. Other companies in the sector, such as Chow Tai Fook Jewelry and Haidilao, also experienced significant declines. Automobile company Zhongsheng Group was down almost 5%. Other index heavyweights like Baidu, Alibaba, and Meituan also saw their stocks drop.
China records flat consumer prices, falling below expectations
China’s consumer prices came in flat in September, falling below expectations for a 0.2% increase. The country’s factory gate prices also saw annual declines slow for a third month. China’s top leaders have labeled the economic recovery as “tortuous” following the country’s emergence from strict Covid-19 restrictions.
JD.com shares slump to lowest in a year on prospects of weaker growth
Shares of Chinese e-commerce giant JD.com tumbled to their lowest in a year due to concerns over weaker retail growth. The company’s shares fell more than 12% in early Friday trade in Hong Kong, underperforming the broader market. Several brokerages downgraded JD.com and revised their target prices for the company.
China’s exports and imports drop in September
China reported a smaller-than-expected decline in exports in September, while imports missed expectations. Exports fell by 6.2% compared to a year ago, less than the forecasted 7.6% drop. Similarly, imports also fell by 6.2% in U.S.-dollar terms, slightly more than the estimated 6% decline. China’s exports have fallen every month this year starting in May.
Singapore keeps monetary policy stance unchanged
Singapore’s central bank, the Monetary Authority of Singapore, kept its monetary policy unchanged for a second straight meeting. The bank manages monetary policy through exchange rate settings and adjusts the pace of its currency’s appreciation or depreciation. Singapore’s GDP expanded 0.7% year-on-year in the third quarter, beating expectations. The country’s construction sector saw significant growth, while its manufacturing sector contracted.
India’s inflation eases to three-month low
India’s inflation eased to a three-month low of 5.02% in September, driven by lower vegetable prices. The figure was below economists’ expectations but remains above the central bank’s target. Last week, the Reserve Bank of India kept interest rates steady at 6.5%.
Fed needs to see core inflation sub 4% and heading lower to stop raising rates, Wolfe says
The Federal Reserve needs to see core inflation fall below 4% and believe it will continue to trend downward to pause and stop raising rates, according to Wolfe Research’s chief investment strategist. Despite the recent consumer price report for September being “modestly hotter-than-expected,” the Fed is expected to raise rates before the end of 2023.
‘Best performing emerging market’: Analysts name stocks to cash in on India’s boom
Analysts are bullish on India’s economic growth and expect it to be one of the best-performing emerging markets in the coming years. Asset management firm AllianceBernstein revealed some of its favorite stocks in India, citing stronger economic growth, government spending, and lower inflation as reasons for optimism.
‘Great tailwind’: Asset manager is bullish on this under-the-radar AI stock
While artificial intelligence-related stocks have rallied this year, Deepwater Asset Management has identified an under-the-radar AI stock essential for the long-term infrastructure rollout of AI. The asset manager is bullish on the stock, believing it will benefit from the growing AI industry.
Demand concerns keeping oil prices in check, Croft says
Despite a bounce back in oil prices on Thursday, concerns about demand are keeping prices in check. The fear of a potential expansion of the Israel-Hamas war and disruptions in the global oil supply is offset by worries about the macro backdrop and potential demand softness.
Birkenstock’s IPO is set to help boost another footwear stock by 65%, analyst says
Investec analysts expect the recent IPO of Birkenstock to have a positive impact on shares of a British footwear brand. Birkenstock’s debut on the New York Stock Exchange provides insight into the financials and metrics of a single-brand footwear company, which could benefit other similar companies in the industry.