HSBC says China’s latest inflation readings allow the PBOC to maintain an accommodative monetary policy
China’s latest inflation figures give the People’s Bank of China room to maintain its current monetary stance, HSBC said in a note.
“Moderating price pressures gives the PBOC room to stay accommodative,” said China economist Erin Xin.
Xin added that the central bank is likely to further facilitate the use of structural tools such as “additional loan quotas for areas of interest such as manufacturing and green investment”.
– Jihye Lee
China’s consumer price index rises 2.5% in August, not calculated
China’s consumer price index rose 2.5 percent year-on-year in August, down from July’s 2.7 percent figure, data from the National Bureau of Statistics showed, without the Reuters poll forecast of 2.8%.
Producer prices rose 2.3% for the month, also slower than July’s 4.2% increase and missing estimates of 3.1%.
A Nomura report earlier this week said 12% of China’s total GDP was affected by Covid controls on a weighted basis, up from 5.3% last week.
– Jihye Lee
The worst is yet to come for the Japanese yen, the analyst says
The depreciation of the Japanese yen is one of the most “rigorous” and “easiest” actions to explain because it is “based on real fundamentals,” Monex Group Director Jesper Koll told CNBC, adding that it could plummet further in the coming months.
It’s the most “textbook-driven monetary move I’ve seen in 30 years,” he said.
Koll pointed to the interest rate differential between the US and Japan as one of the “powerful forces” that will move the yen, adding that the chance of the Bank of Japan raising rates is “close to zero”.
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— Charmaine Jacob
CNBC Pro: Uranium is ‘on a tear’ right now. Here are two ETFs to play with
A niche commodity market, uranium, has been a bright spot over the past month, outperforming even the broader energy sector.
Two ETFs have rallied in recent weeks as the West struggles to reduce its reliance on Russian energy.
Professional subscribers can read more here.
– Weizhen Tan
Bilibili falls 16% at the open after reporting second-quarter losses
Hong Kong-listed shares of Chinese games and video game company Bilibili fell more than 16% at the open after reporting a miss on its second-quarter earnings overnight.
The company reported a net loss of more than $300 million, nearly double the amount of losses reported during the same period a year ago.
Citi Research’s China Internet and Media Vice President Brian Gong was upbeat, saying regulatory concerns about the country’s gaming industry are easing.
Pointing to the government’s resumption of gaming licenses, Gong said that “although the number is lower than expected, it shows that the environment is improving,” he told “Squawk Box Asia” on CNBC, adding that “the worst is behind us.”
– Jihye Lee
CNBC Pro: Citi just upgraded eight Chinese stocks
“China’s economic recovery appears to be slower than market expectations,” Citi analysts said in a Sept. 2 report.
They downgraded 12 China stocks, but upgraded eight. Here are three stocks from his updated list of top Hong Kong and mainland Chinese stocks to buy.
Professional subscribers can read more here.
—Evelyn Cheng
US stock futures open little changed
US stock futures opened lower after a choppy session in the major averages as Wall Street weighed the pace of future interest rate hikes.
Dow Jones Industrial Average futures rose 23 points, or 0.07%. S&P 500 and Nasdaq 100 futures rose 0.08% and 0.13%, respectively.
—Sarah Min