Asia-Pacific markets mostly mixed oil pops on possible OPEC+ supply cut

Australia’s central bank is expected to hike rates by 50 basis points: Reuters poll

A Reuters survey of economists expects the Reserve Bank of Australia to raise its benchmark interest rate by 50 basis points to 2.85%.

RBA board members said the case for a slower pace of rate hikes was building, according to minutes of its September 6 meeting, when it raised its interest rate of 50 basis points.

Nomura analysts expect the central bank to raise rates by 40 basis points, “to convey the view of the RBA approaching the end of the upside hikes.”

Economists at Commonwealth Bank Australia see a higher probability for a 25 basis point hike than for a 50 basis point hike.

– Jihye Lee

Sterling jumps on reports that the British government will reverse the cut in the highest tax rate

The Pound sterling jumped on Monday morning on reports that the UK government would reverse plans to scrap the top rate of income tax.

The pound gained 0.8% against the dollar to trade at around $1.1250 shortly after 7 a.m. London time, bringing the pound back to the level seen before. Announcement by Finance Minister Kwasi Kwarteng of a series of widely criticized tax cuts on September 23.

ANZ sees a significant chance of an OPEC+ cut as big as 1 million barrels per day

Ahead of an OPEC+ meeting on Oct. 5, ANZ sees a “significant chance for a cut” of up to 1 million barrels per day, company analysts said in a note.

This decision will probably be taken “to counter the excessive decline in the market”.

The note adds that any reduction in production below 500,000 barrels per day would, however, be “ignored by the market”.

– Jihye Lee

CNBC Pro: Investment Professional Claims ETFs Are a $10 Trillion Opportunity — and Reveals Areas of “Huge” Value

Exchange-traded funds offer the benefit of diversification, says Jon Maier, chief investment officer at Global X ETFs. He said the ETF market is “growing exponentially” and estimates it is worth $10 trillion.

He names several opportunities for ETF investors in this volatile market.

Pro subscribers can find out more here.

— Zavier Ong

Business confidence in major Japanese manufacturers is deteriorating

Sentiment among major Japanese manufacturers deteriorated in the July-September quarter, according to the Bank of Japan’s latest quarterly tankan business climate survey.

The overall sentiment index for major manufacturers came in at 8, down from the previous quarter’s reading of 9. Economists polled by Reuters had expected a print of 11.

“Our expectations and market expectations were for the manufacturing reading to pick up – supply conditions had improved, you’ve seen the supply impact fade from zero-Covid policies in China, prices commodities have come down a bit,” said Stefan Angrick, a senior economist at Moody’s Analytics.

“The fact that the manufacturing side of the economy isn’t doing so well is definitely not good for the outlook,” he told CNBC’s “Squawk Box Asia.”

But the non-manufacturing index rose slightly, which could mean Japan’s late Covid recovery is underway, he added.

—Abigail Ng

CNBC Pro: Five Global Stocks Knowing the De-Globalization Trend, According to HSBC

Supply chains, geopolitical tensions and deteriorating financial conditions have forced many global companies to “substantially” turn inward in search of resilient revenue and growth, new research from HSBC says.

In a tough economic environment with recessionary pressures, the bank said looking inward is “probably helpful” for those stocks.

The report entitled “A wave of de-globalization? said overseas sales of European companies fell below 50% in 2021, the lowest level in five years.

Oil prices jump on reports of planned OPEC+ production cut

CNBC Pro: Should Investors Flee Stocks? Strategists give their take – and reveal how to trade volatility

With monetary policy expected to tighten further in the coming months and Wall Street mired in the depths of a bear market, many investors are beginning to wonder if now is the right time to exit the stock market and place their money in other asset classes.

CNBC Pro spoke to market watchers and scoured investment bank research to find out what the pros think.

Pro subscribers can find out more here.

— Zavier Ong

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