Asia-Pacific shares rose as Tokyo’s inflation hit a 42-year high

Adani shares fell for the second day in a row

Shares of Adani Group companies saw heavy losses for the second consecutive trading session in India after short sellers. Hindenburg announced his short position At Group companies earlier this week.

While Adani denied the claims in two separate statements, the group is “evaluating the relevant provisions under US and Indian laws for remedial and punitive actions against the Heidenberg research,” Jatin Jalundwala, head of Adani Group Legal, said in a statement.

Stocks listed in Mumbai Adani Enterprises It fell more than 5% in India’s trading session on Friday. Adani Transmission fell 16.8% Adani Green Energy 14.9% and Adani Power 8.4% lost. Adani PortThe share price also fell by 8.4%.

Hindenberg doubled down on its initial stance, stressing that Adani had not answered any of the questions raised in their claims.

“We fully stand by our statement and believe that any legal action taken against us is without merit,” it said.

– Jihye Lee

Tokyo’s inflation is above the Bank of Japan’s target

Consumer prices in Japan’s capital Tokyo rose 4.3% in January, more than economists had expected.

The reading topped the Bank of Japan’s target of 2% inflation for the eighth straight month after rising 2.1% in June 2022.

The Japanese yen strengthened 0.3% after the data release and last traded at 129.82 against the US dollar.

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Singapore house prices fell in the final quarter of 2022

Private residential property prices in Singapore rose 0.4% in the final quarter of 2022, a release from the Urban Redevelopment Authority showed.

The reading showed that home prices rose less than the 3.8% increase in the previous period and the slowest growth since the second quarter of 2020.

Home prices rose 8.6% for the full year of 2022, and were lower than the 10.6% increase for the full year of 2021, the release said.

– Jihye Lee

Australia’s producer price index rose 5.8% from last year

The producer price index in Australia rose 5.8% on an annualized basis in the final quarter of 2022. Australian Bureau of Statistics showed.

The reading was slightly lower than the previous quarter’s print of 6.4%, a signal inflation may ease in the country.

On a quarterly basis, the index rose 0.7%, and was slower than the previous period’s 1.9%.

The Australian dollar Asia strengthened slightly during the morning session and last traded at 0.7123 against the USD.

– Jihye Lee

GDP, other fourth-quarter data show economic challenges ‘starting to become clear’, economist says

Thursday’s GDP data adds to the broader picture of economic growth in the fourth quarter, according to Curt Long, chief economist at the National Association of Federally-Insured Credit Unions. It indicates an improving economic outlook for him.

“The big picture view of economic growth in the fourth quarter is positive. Much of that growth is concentrated in the inventory structure, which is unlikely to grow at the same pace in 2023,” Long said. “However, resilient consumer spending, lower unemployment claims and lower inflation have begun to clear some of the clouds that had built over the economy several months ago.”

– Alex Haring

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Tesla’s strong orders and weak margins have Wall Street analysts conflicted

Wall Street analysts are divided Tesla After the electric car company’s latest quarterly results.

Tesla reported a beat on both Earnings and Earnings in the fourth quarter, and confirmed investor fears of weak growth at the company after recently issuing a round of price cuts. While the move prompted a drop in used Tesla prices, they also supported demand for the vehicles.

“So far in January, we’ve seen the strongest orders we’ve ever seen in our history. We’re seeing orders at twice the rate of production right now,” Musk said during a call with analysts.

For Mark Delaney of Goldman Sachs, that’s “the most important thing since the call”.

“Importantly, Tesla commented that since lowering prices, it has seen the strongest orders in its history, with orders running at 2X production. We believe that this rate of orders will not be sustained in light of the weak macroeconomic environment. , The company is well tracking our 1.8 million delivery estimate.” Would recommend,” Delaney wrote.

Other analysts were more pessimistic about the stock’s outlook, however, saying Tesla’s vehicle gross margins were the lowest number in the past five quarters, spelling trouble ahead.

AllianceBernstein’s Toni Sacconaghi reiterated his underperform rating on Tesla, saying the automaker’s recent results and earnings call “have something for bulls and bears” and that he is “torn” at the company. While strong orders are promising, auto gross margins are too weak to be noticed, the analyst said.

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“Despite raising our energy storage forecast materially, our FY EPS declines to $3.54 from $3.80 amid lower margins. And while no one (including Tesla) knows what demand elasticity is, we believe it is uncertain whether rising demand will last, particularly in China, through year-end. We believe further price reductions will be required,” Sacconaghi wrote.

CNBC Pro subscribers can read the full story Here.

– Sarah Min

CNBC Pro: Morgan Stanley has a ‘simple’ tech playbook, names DSMC and others as stocks to buy now

A recession could be coming, and the semiconductor sector — widely seen as cyclical and volatile — could be a safe haven for investors.

Morgan Stanley says chip stocks have historically performed well in past recessions. The bank named its top Asian chip stock – a 40% gainer.

Pro subscribers can Read more here.

– Javier Ong

US GDP rose slightly more than expected in the fourth quarter

The US economy expanded at a 2.9% annual pace In the fourth quarter, it slightly beat the Dow Jones estimate of 2.8%. The Commerce Department’s report comes even as inflation remains subdued and the Federal Reserve continues to raise rates.

Consumer spending rose 2.1% in the period, down slightly from 2.3% in the previous period, but still positive.

– Jeff Cox

Bitcoin is headed for its best month of 2020

Despite Bitcoin’s pullback over the past two days, the cryptocurrency is on pace for its best month since 2020. Some investors view crypto prices as a leading indicator of investors’ risk appetite.

So far this month and year, Bitcoin is up nearly 40% and is poised to record its best monthly performance since December 2020, when it gained 49.47% for the month.

Meanwhile, the S&P 500 is up about 5% this month.

– Tanaya Machel

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