World

Japan CPI inflation, China loan prime rate, currencies

Tech, casino stocks in Hong Kong buoy broader index

Australia’s central bank says the argument for slower rate hikes strengthening

The Reserve Bank of Australia (RBA)’s board members “saw the case for a slower pace of increase in interest rates as becoming stronger,” according to minutes from its Sept. 6 meeting, where it raised its interest rate by 50 basis points to 2.25%.

“The Board expects to increase interest rates further over the months ahead, but it is not on a pre-set path given the uncertainties surrounding the outlook for inflation and growth,” it said in the minutes released Tuesday.

It added medium-term inflation expectations remained “well anchored.”

Future interest rate increases will be guided by data and the outlook for inflation and labor markets, the RBA said.

— Abigail Ng

CNBC Pro: Goldman says copper demand is about to surge. Here are the stocks it expects to benefit

A copper deficit could be on the horizon, with demand set to surge on the push toward net zero — and some metal stocks could shine in this scenario, according to Goldman Sachs.

CNBC Pro subscribers can read more here.

— Weizhen Tan

China keeps key lending rates unchanged

The People’s Bank of China kept its one-year and five-year loan prime rates (LPR) unchanged, in line with predictions in a Reuters poll.

The one-year loan prime rate remains at 3.65%, and the five-year rate closely tied to home mortgages stands at 4.3%. China cut both those rates last month.

— Abigail Ng

CNBC Pro: Fund manager says the bear market is going to get ‘nasty’

Fund manager Cole Smead believes the stock market is still in the early innings of a bear market — and warns that it won’t be a “garden variety” one.

But, he is not losing any sleep over it. Here’s why:

Pro subscribers can read more here.

— Zavier Ong

Japan’s core inflation accelerates in August

Core consumer prices in Japan rose 2.8% in August from a year ago, government data showed.

That’s the fastest growth in nearly eight years, and the fifth consecutive month where inflation has exceeded the central bank’s target of 2%.

Analysts polled by Reuters predicted a 2.7% increase, and consumer prices gained 2.4% in July.

The Japanese yen strengthened slightly to 142.96 per dollar.

— Abigail Ng

Stocks finish Monday’s volatile session higher

Stocks seesawed on Monday but ended the session in positive territory as a big Federal Reserve week kicked off.

The Dow Jones Industrial Average closed 197.26 points higher, or 0.64%, to settle at 31,019.68. The S&P 500 jumped 0.69% to 3,899.89 and the Nasdaq Composite gained 0.76% to 11,535.02.

— Samantha Subin

10-year Treasury yield jumps above 3.5%, hits highest level since 2011

The benchmark 10-year Treasury yield rose to 3.5% on Monday morning, hitting its highest level since 2011 as investors brace for a higher-for-longer period of interest rates amid the Federal Reserve’s fight against inflations.

Treasury yields rose above the board last week after the August consumer price index report showed a surprise increase in prices. However, the 10-year largely held near its June highs of 3.495% before taking another leg higher on Monday.

The 10-year last traded at a yield of 3.506%, up nearly 6 basis points. Yields move opposite to price, and one basis point is equal to 0.01%.

— Jesse Pound

SOURCE: https://www.cnbc.com/2022/09/20/asia-markets-japan-cpi-inflation-china-loan-prime-rate-currencies.html

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