Stocks higher ahead of RBA decision; Caixin PMI below 50

Chinese factory activity fell for third straight month in October, private survey finds

Caixin Manufacturing’s Purchasing Managers’ Index for October showed factory activity contracted for the third consecutive month.

The reading came in at 49.2, against expectations for a print of 49. In September, the manufacturing PMI was at 48.1, below the 50 point mark that separates growth from contraction.

PMI readings compare month-to-month activity.

Official data from the National Bureau of Statistics came in at 49.2 on Monday, missing expectations for a print of 50.

—Abigail Ng

Hong Kong’s economy shrank 4.5% in the third quarter

Hong Kong’s gross domestic product fell 4.5% in the third quarter of the year compared to the same period a year ago, advance estimates from the Census and Statistics Department showed on Monday.

It was the worst contraction since the second quarter of 2020. Analysts polled by Reuters had expected growth of 0.7%, while GDP fell 1.3% in the second quarter.

“The deteriorating external environment and continued disruptions to cross-border inland freight flows have dealt a severe blow to Hong Kong’s exports,” the statement said, adding that the decline in GDP was “mainly attributable to the weak performance of the external demand during the quarter”.

Fixed capital formation, or investment, fell 14.3%, while exports and imports also fell.

—Abigail Ng

CNBC Pro: This Chinese electric maker’s stock could rebound more than 260%, according to Citi

Citi picked a major electric car maker as one of its “best” buy ideas in Chinese stocks.

He expects the automaker’s shares to rise more than 260% over the next 12 months as electric vehicle sales soar.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

South Korea’s trade deficit widens for October

South Korea’s trade deficit widened to $6.7 billion for October from a revised figure of $3.78 billion in September, according to data from the customs agency.

Imports rose 9.9% to $59.18 billion from the same period a year ago, while exports fell 5.7% to $52.48 billion.

The latest data shows the biggest decline in exports since August 2020, according to FactSet.

– Jihye Lee

CNBC Pro: Forget about Tesla? Citi and HSBC name 2 alternatives to play the electric vehicle boom

Tesla may be an investor favorite for exposure to the electric vehicle industry, but Citi and HSBC cite two alternatives to meet growing demand for electric vehicles.

Pro subscribers can find out more here.

— Zavier Ong

Japan has spent $42.7 billion to prop up the yen, ministry says

Hang Seng loses more than 14% in October

Asia-Pacific Market Performance in October

Market Monthly performance Performance since the beginning of the year
Australian S&P ASX 200 6.01% -7.81%
Japan Nikkei 225 4.5% -5.86%
Kospi from South Korea 6.23% -23.1%
Shanghai Composite in China -4.33% -20.5%
Hong Kong’s Hang Seng -14.55% -37.1%

Mainland China and Hong Kong markets underperformed their Asia-Pacific counterparts in October.

The Hang Seng the index sank to its lowest levels since April 2009 after losing 14.55% at Monday’s close.

Meanwhile, stocks in Australia, Japan and South Korea posted single-digit gains to close the first month of the final quarter of the year, while the Shanghai Composite index fell 4.33% .

Japanese stocks closed at their highest level since Sept. 20, but major APAC indexes were still underwater year-to-date.

—Abigail Ng

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