Stocks higher ahead of RBA decision; Caixin PMI below 50

Oil prices rose 1% as the dollar weakened

Crude oil futures gained in the afternoon in Asia as the dollar weakened.

Brent crude futures 1.23% higher at $93.95 per barrel, while US crude oil futures gained 1.12% to $87.50 per barrel.

The dollar index – which measures the greenback against a basket of six currencies – last traded at 111.22.

A weaker US dollar makes energy cheaper for buyers from other countries that hold different currencies.

— Abigail Ng, Reuters

Toyota’s earnings missed estimates, the stock fell sharply

Listed in Japan shares of Toyota fell sharply after it reported a 25% drop in its second quarter operating profit.

The company reported 562.7 billion yen ($3.79 billion) in operating income for the quarter ended September 30, a significant miss from an average estimate of 772.2 billion yen ($5.2 billion) from a Refinitiv poll and nearly a 25% decline from the same period. last year.

Toyota shares fell more than 2% shortly after the earnings release, as the broader Nikkei 225 index lost some of the early gains in the afternoon session.

– Jihye Lee

Australia’s central bank raised rates by 25 basis points as expected

The Reserve Bank of Australia raised interest rates by 25 basis points to 2.85%, according to the average forecast of analysts in a Reuters poll.

This is the seventh consecutive tightening step by the RBA in a bid to control inflation in the country.

the Australian dollars rallied around $0.6440 before the decision, and last traded at $0.6429 following notice.

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At its last meeting in October, the central bank raised rates by 25 basis points, less than the expected half-point increase.

— Abigail Ng

Hong Kong movers: Hang Seng Tech stocks led the broader index’s gains

Hong Kong-listed technology stocks led gains on the broader Hang Seng index, with Meituan gain more than 10% in the morning session.

Tencent got 8.56%, Alibaba increased 7.2% and Xiaomi gained 4.3%. JD.com also increased by 6.06%.

The move comes after Caixin PMI data for Chinese factory activity was better than expected, according to CMC Markets market analyst Tina Teng.

– Jihye Lee

The Hang Seng lost more than 14% in the month of October

The performance of the Asia-Pacific market in October

market Month-to-date performance Year-to-date performance
Australia’s S&P ASX 200 6.01% -7.81%
Nikkei 225 in Japan 4.5% -5.86%
Kospi in South Korea 6.23% -23.1%
Shanghai Composite in China -4.33% -20.5%
Hang Seng in Hong Kong -14.55% -37.1%

Mainland China and Hong Kong markets underperformed Asia-Pacific peers in the month of October.

the Hang Seng index sank to its lowest level 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 last quarter of the year, while the Shanghai Composite fell 4.33%.

Japanese stocks closed at their highest since Sept.

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— Abigail Ng

CNBC Pro: What investors should buy in this ‘short-lived’ rally, according to one analyst

The analyst explains why he is still negative about technology today

After the stock market rally in October, investors debated whether stocks had hit bottom or if it was just another short-lived bounce.

Michael Landsberg, chief investment officer of Landsberg Bennett Private Wealth Management, is in the latter camp, arguing that the rally, once again, looks temporary.

He told CNBC what he thinks investors should buy — and be brief.

CNBC Pro subscribers can read more here.

— Weizhen Tan

China’s factory activity fell for a third straight month in October, the private survey said

The Caixin manufacturing Purchasing Managers’ Index for October showed that factory activity contracted for the third consecutive month.

The reading came in at 49.2, compared to 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 activity on a monthly basis.

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.

That’s the worst decline since the second quarter of 2020. Analysts polled by Reuters had expected 0.7% growth, while GDP shrank 1.3% in the second quarter.

“The worsening external environment and continued disruptions in cross-boundary land cargo flows have dealt a serious blow to Hong Kong’s exports,” the statement said, adding that the drop in GDP was “primarily which is due to the weak performance of external demand during the quarter.”

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

— Abigail Ng

CNBC Pro: This Chinese electric carmaker’s stock could rally more than 260%, says Citi

Citi has singled out a big electric car maker as one of its “top” ideas to buy Chinese stocks.

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

CNBC Pro subscribers can read more here.

— Ganesh Rao

South Korea’s trade deficit widens for the month of October

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

Imports increased 9.9% to $59.18 billion from the same period last year, while exports decreased 5.7% to $52.48 billion.

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

– Jihye Lee

CNBC Pro: Forget Tesla? Citi and HSBC named 2 alternatives to play the EV boom

Tesla may be a favorite investor for exposure to the EV industry, but Citi and HSBC named two alternatives to play on the growing demand for electric vehicles.

Pro subscribers can read more here.

— Zavier Ong

Japan spent $42.7 billion to support the yen, the ministry said

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