China Covid relaxation, Hong Kong stocks rise

Indonesia’s GoTo Group – the merger of Gojek and e-commerce market Tokopedia – has lost 68.5% of its initial value of 400 trillion rupiah ($28 billion) since its initial public offering in April.

On Thursday, the original IPO’s shareholders such as Alibaba and SoftBank opted out of a second offering after the lock-up on November 30, causing the stock price to fall. price at 7%.

The companies agreed to an eight-month lock-up period to support GoTo’s share price after its IPO as early shareholders.

Its share price continued to fall during Monday’s session, with the company’s value at about 126 trillion rupiah, according to CNBC estimates. GoTo shares have fallen over the year, losing 68% of their value.

Australia’s central bank is expected to raise its cash rate by 25 basis points to 3.1% on Tuesday, according to economists polled by Reuters.

This is the Reserve Bank of Australia’s eighth rate hike this year, and the third 25 basis point increase since October.

In a statement after its November meeting, the RBA said “the full impact” of the series of rate hikes lies ahead.

Meanwhile, Matt Simpson, senior market analyst at City Index, said there is a chance for a pause in rising prices ahead.

“The case for a stop is definitely being made,” he said. “Some measures of inflation expectations are running low, and the annual data is pointing to higher inflation.”

The economy in Australia remains above the RBA’s target of between 2% and 3%, although it saw a slight decline in October, according to the consumer price index. monthly sales.

— Charmaine Jacob

Strategists at Morgan Stanley have raised their recommendation for Chinese stocks to overweight, according to a Sunday note.

The upgrade marks the end of the same level of pressure the company has on Chinese currencies that it has held for close to two years, said analysts led by Laura Wang.

Morgan Stanley cited several factors that have seen “meaningful positive developments” since November, including what the company sees as a “certain path toward the final reopening of Covid.”

— Michael Bloom, Jihye Lee

Chinese technology, consumer and travel companies listed in Hong Kong saw huge gains in early trading after some cities in China saw the easing of Covid restrictions.

Tech heavyweights Tencent gained 5.5% and Meituan rose 3.5%, while Alibaba jumped 4.72% and Xiaomi added 7.31%. EV sales such as Li Auto jumped 9.19% and Nio climbed 11.5%.

Meanwhile, Hong Kong casino stocks are also growing, with MGM China rising 12.44%, Wynn Macau climbing 12.35% and Sands China adding 7.5%. Galaxy Entertainment increased 3.61% and SJM Holdings up 4.82%.

Hotpot restaurant manager Haidilao rose 15%, and airline stocks also jumped. China Southern Airlines and China Eastern Airlines more than 5%, while Air China get 4%

The broader Hang Seng index rose 3.21%.

— Abigail Ng, Jihye Lee

The Caixin/S&P Global services Purchasing Managers Index for November came in at 46.7, this represents the lowest reading in six months.

The print also marked three consecutive months of declining jobs and new jobs, after the October reading came in at 48.4, while the print in September it was 49.3.

PMI readings are linear and represent month-to-month changes in manufacturing activity. The 50-point mark separates growth from decline.

“The rate of decline was steady overall, but remained weaker than the decline seen in the previous wave of Covid-19 cases from March to May,” it said. Caixin said in a statement.

“Efforts to contain the spread of Covid-19 amid a rise in the number of cases in recent weeks weighed on service sector businesses and consumer demand across China in November,” the add this.

China’s official non-manufacturing PMI released last week stood at 46.7, the lowest since April 2022.

— Abigail Ng

The Chinese currency strengthened by about 7 against the US dollar after the latest reports showed that China’s Covid laws are being further relaxed.

The yuan traded at 6.9861 against the greenback, strengthening the previous 7-level for the first time since mid-September.

Beijing and Shenzhen are taking steps to loosen testing requirements and quarantine rules even as the number of daily cases hovers near all-time highs.

The latest actions were taken about a week after the civil unrest arose because of the right measures in different parts of the country.

— Jihye Lee

Schroders’ long-standing fund manager has revealed two global retailers will ‘take control’ of their group.

Andrew Brough, who manages the Schroder UK Mid Cap Fund, said that the two companies that manage the competition are taking market share ahead of the recession by slowly acquiring unsuccessful competitors.

One such stock has already risen 30% this year while its benchmark has fallen 29%.

CNBC Pro can read more here.

— Ganesh Rao

Futures fell as bond yields rose in response to stronger-than-expected jobs data at 8:30 a.m. businessmen.

Here’s how the key futures and benchmarks progressed over the 30 minutes ahead and after the data was released:

Goldman Sachs sees one opportunity in electric cars that is on an “upward.”

This trend will accelerate as EVs become “more compelling technology” and easier to build, Goldman analysts said in a Dec. 1 report.

That is set to benefit one of the world’s stocks, said Goldman, which gives the stock over 90% on its bull box for the company.

CNBC’s Pro can read more here.

— Weizhen Tan

Job growth was stronger than expected in November despite efforts by the Federal Reserve to warm the labor market.

Farm payrolls rose by 263,000 last month before the unemployment rate was unchanged at 3.7%, according to the Labor Department. on Friday.

The payroll number was expected to jump over 200,000 more jobs, according to consensus data from Dow Jones. The unemployment rate was expected to remain at 3.7%.

Stocks fell ahead after the earnings release.

— Sara Min