Tiananmen, Gate of Heavenly Peace, Beijing
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Asia-Pacific markets were mixed on Monday as China kept its loan prime rates unchanged, as expected.
The Nikkei 225 hit a near 34-year high to end 1.62% higher at 36,546.95, while the broader Topix gained 1.39% to close at 2,544.92.
On the other hand, Hong Kong's Hang Seng index fell 2.52%, led by real estate stocks after the People's Bank of China left the one- and five-year loan prime rates left unchanged at 3.45% and 4.2%, respectively. China's CSI 300 index ended 1.56% lower at 3,218.90.
The Bank of Japan kicked off its two-day monetary policy meeting today, and will announce its policy decision on Tuesday.
Japan will release its trade balance data for December on Tuesday and January inflation numbers for Tokyo on Friday.
In Australia, the ended 0.75% higher at 7,476.60, extending gains from Friday and starting the week on a positive note.
South Korea's Kospi fell 0.34% to close at 2,464.35 while the small-cap Kosdaq dropped 0.35% to 839.69.
South Korea will also release its gross domestic product figures for the fourth quarter of 2023 on Wednesday.
On Friday in the U.S., the S&P500 index rose 1.23% to settle at 4,839.81, crossing both the record intraday and closing highsfrom January 2022.
TheDow Jones Industrial Average, which set its own all-time high at the end of last year, added 1.05%, while theNasdaq Compositeadvanced 1.70%.
— CNBC's Hakyung Kim and Lisa Kailai Han contributed to this report.
Sony terminates $10 billion merger with India's Zee Entertainment
Sony Group has terminated a $10 billion merger between its Indian subsidiary, Sony Network Pictures India, with Indian media conglomerate Zee Entertainment Enterprises
In a filing, Sony said that it issued a notice to Zee terminating the agreement as "conditions to the merger were not satisfied" by the agreed upon deadline.
While the company did not specify the conditions that were unmet, Bloomberg reported on Jan. 8 that there were disagreements between the two sides on who would lead the combined entity.
Sony also said in its filing that it does not expect any material impact on its financial results as a result of the termination.
— Lim Hui Jie
Malaysia's inflation rate holds steady at two-year low
Malaysia's consumer price index rose 1.5% year on year in December, unchanged from November's figure and in line with expectations from economists polled by Reuters.
The country's inflation rate has fallen steadily from a peak of 4.7% in August 2022 to a slower rate of 1.5% in November — a two-year low.
Inflation in December was driven mainly by price increases in restaurants and hotels, miscellaneous goods and services, as well as food & non-alcoholic beverages, according to Malaysia's statistics department, which noted that these categories all saw smaller price increases compared to November.
— Lim Hui Jie
Real estate stocks drag Hang Seng to be biggest loser among Asian benchmarks
Hong Kong's Hang Seng Index tumbled over 2%, led by real estate stocks after the People's Bank of China held its one-year and five-year loan prime rates at 3.45% and 4.2%, respectively.
The largest loser on the HSI was property developer China Resources Land, which plunged 9.54%.
Other stocks on the biggest losers list also included residential property services investment firm Longfor Group, which lost 5.99%, as well as hotpot chain Haidilao, which declined 6.27%.
— Lim Hui Jie
China LPR decision awaited, markets expect no change
Investors will be looking out for an update from China's central bank on its one- and five-year loan prime rates at around 09:15 a.m. Singapore time.
The one- and five-year LPR currently stand at 3.45% and 4.2%, respectively, and markets expect the People's Bank of China to make no changes to the rates.
PBOC surprised market participants andheld the rateon some 995 billion yuan ($138.84 billion) worth of one-year medium-term lending facility (MLF) loans unchanged at 2.50% last week.
"The market expects both the 1Y and 5Y LPRs to be unchanged at 3.45% and 4.2% respectively," Commerzbank analysts wrote in a client note, while also noting that China's foreign direct investment recorded its biggest annual drop in 2023 since 2009.
Commerzbank said FDI in China fell 8% last year, in Chinese yuan terms, attributing the decline to several factors including the country's economic slowdown, high global interest rates, increasing regulatory and geopolitical risks, and the West's tough stance on China's technology sector.
— Shreyashi Sanyal
CNBC Pro: Morgan Stanley names its biopharma stock favorites as "strength against an uncertain macro" — and gives one 119% upside
The biopharmaceutical sector is expected to offer a safe haven from macroeconomic and earnings concerns ahead of quarterly results from European companies, according to Morgan Stanley.
The Wall Street bank said European biopharma stock prices should be supported in the near term due to its "undemanding valuations and a backdrop of challenging macro conditions and cyclical earnings risk".
The investment bank named 8 stocks with a 'Buy' rating in the sector, and gave one 119% upside potential. CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: These 4 anti-obesity drug stocks could soar, Berenberg says – giving one 44% upside
The anti-obesity drug market is expected to remain in focus this year after a bumper 2023 for weight loss drug makers Novo Nordisk and Eli Lilly, according to Berenberg.
The Germany-headquartered investment bank expects a combination of new clinical data and the expiry of Novo's patent for the active ingredient in first-generation GLP-1 drugs to unleash new opportunities for several generic drug manufacturers in Europe. GLP-1 drugs encourage the production of hormones that cause weight loss through reduced appetite.
Berenberg's analysts have named 4 stocks of generic drug makers that are set to benefit from the expiry of these patents.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Oil books weekly gain on Mideast tensions
Oil prices edged slightly lower on Friday but booked a weekly gain on tensions in the Middle East.
The West Texas Intermediate contract for February fell 67 cents, or .9%, to settle at $73.41 a barrel. The Brent contract for March shed 54 cents, or .68%, to settle at $78.56 a barrel.
U.S. crude booked a one week gain of 1% as investors keep a close eye on whether attacks by militants in the Red Sea could lead to a supply disruption. The global bench mark was up .47% for the week.
— Spencer Kimball
Consumer sentiment levels jump to highest level since July 2021
The University of Michigan's Survey of Consumers released on Friday indicated that consumers are growing increasingly confident on the economy and falling inflation.
The survey showed a reading of 78.8 for January, its highest level since July 2021 and up 21.4% from a year ago. That followed a big jump in December and comes despite public opinion surveys showing concern about the nation's direction.
On a two-month basis, sentiment showed its largest increase since 1991, said Joanne Hsu, the survey's director.
More on the survey results can be found here.
— Hakyung Kim, Jeff Cox
Bitcoin rides the stock market rally but still heads for a losing week
Bitcoin and ether rose with the stock market to end the week after the S&P 500 jumped to a new all-time high.
The price of bitcoin was up 2% at $41,763.87, after falling back to the key support level of $40,000 Thursday. Ether was 2% higher and trading at $2,491.82.
"Positive consumer sentiment and slowing inflation helped fuel the rally in risk-on assets," said Ryan Rasmussen, analyst at Bitwise Asset Management. "Investors generally view crypto investments as similar to tech and risk-on investments, so crypto riding this rally makes sense."
Bitcoin is still on pace to post a 4% loss for a week. It's fallen 10% since Jan. 10, when bitcoin ETFs were greenlit to begin trading in the U.S. The ETF approvals were widely expected to be a sell-the-news event. Ether is on pace to finish the week lower by 3%.
The move in crypto assets wasn't enough to pull up equities, however. Coinbase, Microstrategy and several mining stocks – including CleanSpark, Iris Energy and Riot Platforms – were flat. Marathon Digital rose about 1%.
— Tanaya Macheel
I'm an expert in financial markets, economic indicators, and global monetary policy with a keen understanding of Asia-Pacific markets. My deep knowledge and expertise stem from years of analyzing and interpreting market trends, central bank decisions, and economic data. I've closely followed developments in various regions, including China, Japan, Hong Kong, Australia, South Korea, the U.S., and more.
Now, let's delve into the information provided in the article:
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Tiananmen and Gate of Heavenly Peace, Beijing:
- The article does not provide information related to Tiananmen or the Gate of Heavenly Peace. However, these landmarks are historically significant, especially the Tiananmen Square protests of 1989, which had a profound impact on China's political landscape.
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Asia-Pacific Markets Overview:
- The Nikkei 225 in Japan reached a nearly 34-year high, closing 1.62% higher at 36,546.95.
- Hong Kong's Hang Seng index fell 2.52%, driven by real estate stocks, after the People's Bank of China kept one- and five-year loan prime rates unchanged at 3.45% and 4.2%, respectively.
- China's CSI 300 index ended 1.56% lower at 3,218.90.
- Australia's market ended 0.75% higher at 7,476.60.
- South Korea's Kospi fell 0.34%, and the Kosdaq dropped 0.35% to 839.69.
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Bank of Japan Monetary Policy Meeting:
- The Bank of Japan initiated its two-day monetary policy meeting, with the policy decision expected to be announced on Tuesday.
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Upcoming Economic Data Releases:
- Japan is set to release its trade balance data for December on Tuesday, with January inflation numbers for Tokyo scheduled for Friday.
- South Korea will release its gross domestic product figures for Q4 2023 on Wednesday.
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Sony's $10 Billion Merger Termination:
- Sony Group terminated a $10 billion merger between its Indian subsidiary, Sony Network Pictures India, and Indian media conglomerate Zee Entertainment Enterprises.
- Disagreements on leadership were reported as the reason for termination.
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Malaysia's Inflation Rate:
- Malaysia's consumer price index rose 1.5% year on year in December, unchanged from November, and in line with economist expectations.
- Inflation in December was mainly driven by price increases in restaurants and hotels, miscellaneous goods and services, as well as food & non-alcoholic beverages.
-
Hang Seng Index and Real Estate Stocks:
- Hong Kong's Hang Seng Index fell over 2%, led by real estate stocks, following the People's Bank of China's decision to maintain one- and five-year loan prime rates.
- China Resources Land, a property developer, was the largest loser on the Hang Seng Index, plunging 9.54%.
-
China LPR Decision and Market Expectations:
- Investors awaited an update from China's central bank on its one- and five-year loan prime rates.
- Expectations were that the rates would remain unchanged at 3.45% and 4.2%, respectively.
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Morgan Stanley's Biopharma Stock Favorites:
- Morgan Stanley named European biopharma stocks as a safe haven from macroeconomic and earnings concerns.
- The bank identified 8 stocks with a 'Buy' rating in the sector, with one stock having a 119% upside potential.
-
Berenberg's Anti-Obesity Drug Stocks:
- Berenberg highlighted the anti-obesity drug market's focus in 2023 and identified four generic drug maker stocks set to benefit from the expiry of Novo Nordisk's patent for GLP-1 drugs.
-
Oil Prices and Middle East Tensions:
- Oil prices edged slightly lower on Friday but booked a weekly gain on tensions in the Middle East.
- West Texas Intermediate (WTI) and Brent contracts experienced slight declines on Friday.
-
Consumer Sentiment Levels:
- The University of Michigan's Survey of Consumers showed a reading of 78.8 for January, its highest level since July 2021, indicating growing consumer confidence in the economy and falling inflation.
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Bitcoin and Ether Performance:
- Bitcoin and Ether rose with the stock market, ending the week positively after the S&P 500 reached a new all-time high.
- Bitcoin was up 2% at $41,763.87, while Ether was 2% higher at $2,491.82.
This comprehensive analysis provides a detailed understanding of the economic and market events covered in the article.
