Asia Pacific markets mixed as Japanese stocks suffered losses on day two

Indonesia to ban bauxite exports from June 2023

India’s central bank governor warns that the next financial crisis will come from private cryptocurrencies

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

Speaking at the BFSI Insight Summit 2022 organized by Business Standard, Das said he was firm that cryptocurrencies should be banned, adding that they have no underlying value and pose risks to macroeconomic and financial stability.

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

– Charmaine Jacob

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

The 2-year Japanese government bond yield briefly rose above zero in Wednesday morning trading for the first time since 2015. The grade rose by 2.7 basis points and was just below the zero line.

Japan’s 2-year yield rises above zero for the first time since 2015

The 10-year JGB yield rose more than 3 basis points to 0.451%, also matching 2015 highs, while the 30-year JGB yield rose 2 basis points to 1.6%.

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

– Jihye Lee

HKEX opens office in New York to expand international reach

The Hong Kong stock exchange operator opened its New York office to expand its international reach and expand its global client base.

The new Hong Kong Exchanges and Clearing Limited (HKEX) office will boost its connectivity with mainland China’s markets and its liquid primary and secondary spot markets, it said.

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

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

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

— Lee Ying Shan

Bank stocks in Tokyo rebound as broader index falls

Japanese yen strongest in more than four months

The Japanese yen continued to appreciate overnight after the Bank of Japan announced it would widen its yield curve control band.

The currency appreciated more than 5% against the Australian dollar and the New Zealand dollar, while gaining over 3% against the US dollar.

The yen strengthened after the Bank of Japan announced it would widen its yield curve control band

CNBC Pro: Fund manager says recession “imminent” — and cites cheap stocks to play with

Market watchers are growing concerned about a looming recession, and fund manager Steven Glass is no exception.

With that in mind, he says he focuses on companies with earnings visibility that trade at attractive valuations.

Among his favorites is a big tech name that he says is “extremely cheap” with “huge margin potential.”

Pro subscribers can read more here.

– Zavier Ong

Stocks hold onto gains, breaking a 4-day losing streak

Shares posted gains on Tuesday, breaking 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 was up 0.11% to 3,821.73, while the Nasdaq Composite was up 0.01% to close at 10,547.11.

– Carmen Reinicke

Bank of Japan tightened earlier than expected, signals

The Bank of Japan’s surprise change of course sent interest rates higher around the world as investors reacted to more evidence that central bankers around the world will continue to hike interest rates.

“It was definitely a surprise. I don’t think anyone out there was expecting that,” said Ben Jeffrey, rates strategist at BMO. The Bank of Japan moved to tighten monetary policy earlier than expected. The BOJ changed its yield curve policy to allow the 10-year Japanese government bond yield to move 50 basis points either side of its zero target rate from 25 basis points.

The announcement pushed interest rates higher around the world as Japanese government bond (JGB) yields surged to 7-year highs. Interest rates move in the opposite direction to returns. The US 10-year bond was up 3.68%.

“They were definitely the last ones left in terms of keeping pigeons and now they’re still pigeons but less so,” Jeffrey said. “It’s obviously bearish JGBs and global fixed income, but over the longer term it should help the yen, which will make government bonds more attractive to Japanese investors next year.”

– Patti Domm

Expect a tougher environment, says Atlantic Equities

Atlantic Equities analysts expect a tougher environment for global consumers in 2023.

“Inflation may have peaked in the headlines, but input costs remain high and companies will look to at least hold prices if they don’t, in some cases,” analyst Edward Lewis said in a note on Tuesday. “That could become more difficult as elasticity levels begin to normalize as US retailers begin to fight back on pricing, as European peers have done throughout the year.”

He singled out Coca-Cola and Pepsi as some of his favorite consumers, citing “category momentum, ongoing investments and strong execution supporting increased growth.”

– Tanaya Macheel

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

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

From the market’s yearly high on Jan. 3 to this morning, US stocks have lost $11.7 trillion in market cap, according to data from the Bespoke Group.

“The maximum drawdown was $13.6 trillion from the bottom on Sept. 30, so we’ve seen the market cap rise by nearly $2 trillion since then,” analysts wrote on Tuesday. “On a dollar basis, this drop was more extreme than anything investors have ever experienced. That’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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