Hong Kong stocks rise more than 2% as China trade data misses estimates

Rising interest rates and food inflation are headwinds for the Indian economy

The two risks the Indian economy will face in 2023 are inflation and rising interest rates, State Bank of India Governor Dinesh Kumar Khara told CNBC’s “Squawk Box Asia” on Monday.

There is a risk that India and other economies will have to keep raising their interest rates when central banks like the US Federal Reserve do so, Khara said.

Food inflation is also a challenge as India “imports a significant portion of its food requirements,” Khare added.

– Su-Lin Tan

US midterms will have no “direct and immediate impact” on China: Morgan Stanley

The US midterm elections will not lead to a direct and immediate impact on China, Morgan Stanley said in a note on Monday.

The results, however, may indicate a proposal to scrutinize American companies investing in China could resurface.

Senator Robert Casey in September pushed for such a process in a Senate Banking Committee hearing in September, citing “national security” concerns.

If such proposals are accepted, Morgan Stanley sees the information technology, manufacturing and healthcare sectors as the most affected, the note said.

Morgan Stanley added that they “do not expect a severe disconnection between the West and China”.

– Li Ying Shan

China’s October exports mark the first year-over-year decline since May 2020

China’s exports in US dollar terms fell by 0.3% In October compared to a year earlier, it significantly missed the expectations for a 4.3% increase in the Reuters poll and a sharp drop from the 5.7% growth in September.

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Imports also decreased by 0.7%, missing Forecasts for a 0.1% increase from a year earlier after a 0.3% increase in September.

The drop in US dollar terms last month marked the first year-over-year drop since May 2020, according to Refinitiv Eikon data.

The yuan weakened nearly 3% against the US dollar in October, according to Refinitiv Eikon.

In yuan terms, exports rose by 7% and imports by 6.8%, customs data released on Monday showed.

– Evelyn Cheng

Coinbase criticizes Singapore’s crypto regulations, calls on city-state to embrace retail trade

Singapore wants to be a Web3 hub, but balks at trading crypto at the same time, Coinbase founder and CEO Brian Armstrong noted at a panel meeting last week.

“Both of those things are inconsistent in my opinion, and I want to see Singapore embrace self-hosted retail and wallets,” Armstrong said, speaking alongside Supandu Mohanty, chief fintech officer of the Monetary Authority of Singapore at the Singapore Fintech Festival 2022.

Mohanty, in response, said that retail investors today are “exposed to risks they don’t realize they are taking”.

“We believe that Web 3.0 is the future and what we want to do is ensure that the money that can transact on this ecosystem is considered a safe asset, a safe currency,” Mohanty said. “As long as this is the direction, we are fine.”

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– Sheila Chiang

China reopens still ‘months away’ despite talk of preparations: Goldman Sachs

Speculation about China’s reopening led to a rally in markets last week, but economists at Goldman Sachs say it is still “months away.”

“The actual reopening is still months away as vaccination rates for the elderly remain low and case fatality rates appear high among the unvaccinated based on official Hong Kong data,” economists led by Hui Shan said in a note.

They added that the government is apparently working on an exit strategy, and that the company expects the country to reopen in the second quarter of 2023.

– Jihi Lee

CNBC Pro: Morgan Stanley Says That Global Battery Material Stock Could Soar More Than 80%

Morgan Stanley expects shares of the Asian battery materials maker to rise 85% by the end of next year.

It’s an under-the-radar battery material supplier Teslawhich already has triple-digit revenue growth, plans to expand production to the United States.

Even the JP Morgan analysts using a “conservative valuation approach” expect the stock to rise 25% within a year.

CNBC Pro subscribers can read more here.

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– Ganesh Rao

Apple says iPhone production has temporarily dropped due to Covid-19 restrictions in China

Apple said iPhone 14 production has been temporarily reduced due to Covid-19 restrictions at its assembly plant in Zhengzhou, China, according to a statement on Sunday.

The warning could mean the tech company will struggle to meet demand in December as it deals with “significantly reduced capacity” at the plant. The company previously flagged slowing growth in its iPhone business in its earnings report last month.

The warning from Apple comes as China last week ordered a shutdown in Zhengzhou, where Apple does most of its iPhone production. According to Reuters, workers fled the facility due to restrictions and Covid outbreaks.

– Sara Min, Keef for Swing

CNBC Pro: There’s Still Opportunity in Tech – Here’s How to Trade It: Analysts

Technology companies are dealing with a double whammy of bad news, with disappointing earnings and continued interest rate hikes by the Federal Reserve weighing on the sector.

But with the heavy technology Nasdaq Down more than 30% year-to-date, analysts say there are some bright spots that could offer opportunities for investors.

Here are some of their top picks, including one stock with an average upside of over 50%.

CNBC Pro subscribers can read more here.

– Vision Tan


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