Asia-Pacific markets mixed as Japan stocks see second day of losses

Indonesia to ban bauxite exports from June 2023

India’s central bank chief warns next financial crisis will come from private cryptocurrencies

The next financial crisis will come from private cryptocurrencies, India’s central bank governor Shaktikanta Das said on Wednesday.

Speaking at the BFSI Insight Summit 2022 hosted by Business Standard, Das said he was a firm believer in banning cryptocurrencies, adding that they had no underlying value and posed risks to macroeconomic stability and financial.

Bitcoin was last up around 0.24% to $16,840, according to Coin Metrics. Ether rose 14% to $1,211.77.

— Charmaine Jacob

Japan’s 2-year yield briefly exceeds zero for the first time since 2015

The yield on 2-year Japanese government bonds briefly rose above zero for the first time since 2015 in Wednesday morning trading. The rating gained 2.7 basis points to sit just below the flatline.

Japanese 2-year yield crosses above zero for the first time since 2015

The 10-year JGB yield jumped more than 3 basis points to 0.451%, also hitting 2015 highs, while the 30-year JGB yield edged up 2 basis points to s to trade at 1.6%.

Yields move inversely to price and one basis point equals 0.01%.

—Jihye Lee

HKEX Opens New York Office to Expand International Reach

The Hong Kong stock exchange operator has opened its New York office in a bid to expand its international reach and grow its global customer base.

The new office of Hong Kong Exchanges and Clearing Limited (HKEX) will promote its connectivity with mainland China markets and its primary and secondary liquid markets, he said.

“At HKEX, we are fully focused on supporting the growth ambitions of our customers around the world,” said HKEX CEO Nicolas Aguzin.

“We look forward to deepening our relationships with investors, companies and risk managers across the region, connecting capital to opportunity and East to West,” he added.

About 41% of Hong Kong cash equity market turnover is attributed to international investors. HKEX currently has offices in Beijing, Shanghai and Singapore.

— Lee Ying Shan

Banking shares in Tokyo rise again as broader index falls

The Japanese yen at its strongest for more than four months

The Japanese yen strengthened further overnight, after the Bank of Japan announced the widening of its yield curve control band.

The currency strengthened by more than 5% against the Australian dollar and the New Zealand dollar, while it appreciated more than 3% against the US dollar.

The yen strengthened after the Bank of Japan announced the widening of its yield curve control band

CNBC Pro: Fund manager says recession is ‘imminent’ – and names cheap stocks to play in it

Market watchers are increasingly worried about an impending recession and fund manager Steven Glass is no exception.

In this context, he says he focuses on companies with visible earnings and trading at attractive valuations.

His picks include a Big Tech name that he says is “extremely cheap” with “huge margin potential.”

Pro subscribers can find out more here.

— Zavier Ong

Stocks hold onto gains, break 4-day losing streak

Shares gained on Tuesday, ending a four-day losing streak.

The Dow Jones Industrial Average rose 92.47 points, or 0.28%, to close at 32,850.01. The S&P 500 gained 0.11% to 3,821.73, while the Nasdaq Composite rose 0.01% to close at 10,547.11.

—Carmen Reinicke

Bank of Japan more hawkish sooner than expected, reports

the Bank of Japan surprise policy change pushed interest rates higher globally, as investors reacted to more evidence that central bankers around the world will continue to push interest rates higher.

“It was definitely a surprise. I don’t think anyone expected it,” said Ben Jeffrey, rate strategist at BMO. Japan’s central bank acted earlier than expected to tighten policy. The BOJ changed its yield curve policy to allow the yield on 10-year Japanese government bonds to move 50 basis points either side of its zero target rate, from 25 basis points previously.

The announcement sent yields higher around the world, as Japanese government bond (JGB) yields hit 7-year highs. Rates move in the opposite direction to yield. The American 10-year jumped 3.68%.

“They were definitely the last to be dovish, and now they’re still dovish but less so,” Jeffrey said. “It’s obviously JGB and globally bearish fixed income, but longer term it should help the yen, making Treasuries more attractive to Japanese investors next year. .”

–Patti Domm

Expect a tougher environment ahead, according to Atlantic Equities

Atlantic Equities analysts predict a tougher environment for the global consumer in 2023.

“Inflation may well have peaked on an aggregate basis, but input costs remain high and businesses will seek to at least maintain, and in some cases even raise, prices,” analyst Edward Lewis said in a note on Tuesday. . “That could become more difficult as elasticity levels start to normalize, with US retailers starting to push prices back, in line with what their European peers have been all year.”

He highlighted Coca-Cola and Pepsi as among his top consumer picks, citing “category momentum, continued investment and strong execution supporting high growth.”

—Tanaya Macheel

The stock market has lost $11.7 trillion so far this year

It’s been a tough year for equities, which are currently in a bear market and down year-to-date.

From the annual market peak on January 3 to this morning, US stocks have lost $11.7 trillion in market capitalization, according to data from Bespoke Group.

“The maximum drawdown was $13.6 trillion at the Sept. 30 low, so we’ve seen market capitalization rise by just under $2 trillion since then,” analysts wrote on Tuesday. “In dollar terms, this drop was more extreme than anything investors have ever seen. It’s pretty deflationary if you ask us!”

Of the $11.7 trillion, more than $5 trillion in losses came from just five companies: Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla.

—Carmen Reinicke

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