Asia-Pacific markets, Fed, Wall Street, Apple, Tesla, Japan PMI

Alibaba shares rise after Ant Group receives investment plan approval

Hong Kong-listed Alibaba shares rose 6.43% in Wednesday morning trading – after China’s Banking and Insurance Regulatory Commission approved a capital expansion plan by Ant Group for its consumer financial unit based in Chongqing.

According to a review posted last weekChinese regulators have given the green light to billionaire Jack Ma’s fintech company to raise 10.5 billion yuan ($1.5 billion).

Ant Group is a subsidiary of Alibaba of which the e-commerce giant owns 33%. Ant Group manages the Alipay mobile payment wallet in China. Alibaba shares rose 2.78% on Tuesday, the first trading session after the notice was issued.

Other companies named in the notice include Hangzhou Jintou Digital Technology Group, Nanyang Commercial Bank, Zhejiang Sunny Optical and China Huarong Asset Management.

The approval marks progress in the state-led regulatory overhaul from the fintech giant.

– Jihye Lee, Evelyn Cheng

CNBC Pro: Analysts See These 10 Global Renewable Energy Stocks Rise Despite Higher Rates, With One Offering a 50% Upside

Soaring energy prices have spurred investment in renewable energy across the world.

Swiss investment bank UBS has named 10 major renewable energy players that are capitalizing on the trend and expected to outperform next year.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

Japan’s manufacturing activity weakest in more than two years

the at the Jibun Bank Flash Japan Manufacturing Purchasing manager’s index for December posted a reading of 48.9, marking a second consecutive month in contraction territory.

The reading fell slightly from November’s 49.0 and marked the weakest reading since October 2020’s 48.70 figure.

The sustained contractions in output were attributed to “weak global economic trends”, the report said.

—Lee Ying Shan

Tesla’s Asian suppliers fall after deliveries report

Tesla’s suppliers in Asia fell after him reported its fourth-quarter vehicle production and delivery numbers for 2022 fell short of expectations.

The shipments report showed 405,278 total shipments for the quarter and 1.31 million total shipments for the year, which is below expectations to see around 427,000 shipments for the last quarter of the year.

from Japan panasonic lost 1.82% in early trading in Asia – South Korea’s LG Chem fell 0.17% in the first few hours and Samsung SDI lost around 2%.

Shares listed in Shenzhen of Contemporary Amperex Technology, or also known as CATL, fell 1.7%. Shares of Tesla closed down 12% on Wall Street on Tuesday.

– Ashley Capoot, Jihye Lee

CNBC Pro: Wall Street bullish on this chip giant, Morgan Stanley giving it 55% upside

The once-hot chip sector has suffered in 2022, but Wall Street appears to be getting more bullish on semiconductor stocks for the year ahead.

Recently, several pros have urged investors to have a longer-term vision of the sectorgiven the importance of chips in several key secular trends.

Analysts have named one particular stock they are bullish on, citing its earnings potential and future profitability.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

Apple suppliers in Asia mostly trade higher despite reports of production cuts

US manufacturing PMI slips at fastest pace since May 2020

The U.S. Manufacturing Price Managers’ Index, a measure of output, fell at the fastest pace in December since May 2020, according to S&P Global.

The index was 46.2 in December, down from 47.7 in November, data showed on Tuesday. Falling prices and shrinking production levels weighed on the index. Additionally, December saw a stronger than expected decline in new sales, with companies noting uncertainty due to the economic backdrop.

—Carmen Reinicke

Tesla loses 13% and hits a new 52-week low

The stock fell more than 13% to levels not seen since August 2020. The decline comes from the stock’s worst annual performance – Tesla fell 65% in 2022.

—Carmen Reinicke

Apple’s market capitalization drops below $2 trillion

A sale in Apple Shares pushed the iPhone maker’s market capitalization below $2 trillion on Tuesday.

The shares fell 4% amid news that it had cut production of some items due to weak demand. Concerns over iPhone supply over the holiday season have intensified in recent weeks and put pressure on stocks as shutdowns ripple through Apple’s main supplier in China.

The stock decline contrasts a year ago, when Apple became the first US company to reach a market capitalization of $3 trillion.

Apple was the last of the mega-cap tech stocks to break above the $2 trillion level.

— Samantha Subin

The United States will avoid recession in 2023, according to Goldman Sachs

Goldman Sachs has a non-consensus forecast for the US economy in 2023.

“Our economists continue to believe that the United States will avoid recession as the Fed successfully engineer a soft landing for the economy,” analysts wrote Tuesday.

“This non-consensus forecast partly reflects our view that a period of below-potential growth is sufficient to gradually rebalance the labor market and ease wage and price pressures,” the note said. “But it also reflects our analysis which indicates that the drag on fiscal and monetary policy tightening will decline sharply next year, contrary to the consensus view that the lagged effects of interest rate hikes will lead to a recession in 2023. .”

Additionally, the bank today raised its 4Q22 GDP growth forecast by 10 basis points to +2.1% on the back of a surprisingly strong November construction spending release.

“The disconnect between the resilience of the U.S. economy in 2022 and the decline experienced by equities has been a key narrative of the past year,” Goldman said. “And whether this disconnect continues, or whether the economy matches the downdraft of the market, or whether the market rebounds from a soft landing in the economy, that can at least be part of the 2023 narrative. .”

—Carmen Reinicke

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