Asian Markets: South Korea Inflation, China Reopening – CNBC

Inflation in Singapore is likely to remain high in the first quarters of 2023, says UOB

Next week: Asia Pacific PMIs, trade data, inflation data

Major economic events in Asia Pacific next week will be dominated by purchasing managers indices in the region.

China’s National Bureau of Statistics is expected to release official manufacturing and non-manufacturing PMI printouts Saturday. Reuters expects factory activity in China to contract with a reading of 48.

South Korea will also report its December trade data this weekend, with economists polled by Reuters forecasting a 10.1% decline from a year ago.

Singapore is expected to release manufacturing PMI readings next week S&P Global is expected to release PMI readings for South Korea, Indonesia and India on Monday.

Inflation numbers for the Philippines and Indonesia will also be closely watched, with releases scheduled for Tuesday and Monday respectively.

Japan’s PMI reading and China’s services PMI private survey will be released on Wednesday. Singapore will release November retail sales on Thursday, as well as South Korea’s December unemployment rate.

– Jihy Lee

Yamaguchi emerging as a candidate for the next governor of the Bank of Japan: Sankei

Former deputy governor of the Bank of Japan Hirohide Yamaguchi emerges as a candidate to head the central bank, Japanese local media reported Sankeiciting people familiar with the matter.

Yamaguchi, who held the deputy post at the central bank until 2013, has been an outspoken critic of current governor Haruhiko Kuroda’s ultra-loose monetary policy.

The paper added that Yamaguchi would indicate a shift away from former Japanese Prime Minister Shinzo Abe’s economic stimulus strategy, known as “Abenomics”.

Sankei reported that Yamaguchi is drawing attention as current Prime Minister Fumio Kishida moves away from stimulus-oriented monetary policy and that the appointment of the next head of the central bank will become clear next month.

– Jihy Lee

Foreign talent less inclined to come to Singapore after Hong Kong reopens, says UOB

With Hong Kong reopening, foreigners may be less inclined to move to Singapore, says Alvin Liew, senior economist at United Overseas Bank.

“Singapore has benefited in terms of the talent pool that has come here because of stricter regulations in Hong Kong itself,” Liew said, adding that the influx of workers moving to Singapore “might see some easing” now that the city has reopened.

“Talent pool itself may be less inclined to move here,” said the Singapore-based economist.

Liew also added that Hong Kong’s reopening is a step in the right direction for the region to “get back to business as usual,” Liew said.

According to analysts, Chinese markets will see a “tactical” recovery next year

According to Port Shelter Investment Management, Chinese markets are likely to see a “tactical pick-up” of recovery in the coming year.

“It’s fair to say that we’re likely to see a tactical leap,” Richard Harris, CEO of the company, told CNBC.

“It will be tactical because ultimately China has to fit in with the rest of the world,” he said.

Harris expects China’s recovery to take place in the first quarter of the year and the mood to continue into the second quarter as well.

This recovery also depends on many currently unknown elements, such as whether heavy stimulus will be injected into the Chinese economy and what will be done about inflation when the economy picks up, he added.

— Lee Ying Shan

New China tech ETF can ‘bring retail liquidity’ to Singapore market: investment firm

Wealth manager explains how his SGX ETF listing would differ from his other Chinese index funds

The Singapore-listed CSI Star and ChiNext 50 Index Exchange Traded Fund can bring liquidity from mainland China to Singapore, CSOP Asset Management CEO Ding Chen told CNBC’s “Squawk Box Asia.”

Listed on the Singapore Exchange on Friday, the company’s ETF is a sub-fund of the CSOP SG ETF Series I, a Singaporean unit trust, according to the fund’s page.

“Through SGX, Singaporean investors and international investors can also access China-listed ETFs,” said Ding, adding that Chinese investors can also invest directly in Singapore ETFs.

When asked about the evolution of the company’s ETF portfolio, Ding said it will bring “more emerging, younger-generation technology companies” to market.

—Sheila Chiang

Inflation in South Korea unchanged in December

South Korea’s consumer price index in December rose 5% year-on-year, statistics from the Bank of Korea showed.

The reading maintained cooler levels this month and remained unchanged from November.

The print is in line with economists’ expectations polled by Reuters.

– Jihy Lee

Shares close higher on Thursday

All major averages ended higher on Thursday.

The Dow Jones Industrial Average rose 345.09 points, or 1.05%. The S&P 500 gained 1.75% and the Nasdaq Composite climbed 2.59% to 10,478.09.

— Tanaya Macheel

CNBC Pro: Chip stocks underperformed this year – but this fund manager is still bullish and names 2 to buy

The number of jobless claims rose last week; lingering claims were the highest since February

Jobless claims increased last week due to the Federal Reserve’s efforts to cool the economy and the labor market in particular.

Initial claims for unemployment benefits totaled 225,000 for the week ending Dec. 24, the Labor Department reported Thursday. That was an increase of 9,000 from the previous week and slightly above the Dow Jones estimate of 223,000.

Long-term ongoing claims, which are a week behind the overall number, rose to 1.71 million, up from 41,000 to the highest level since early February.

The numbers are always noisy this time of year because of the holidays. The number of claims not adjusted for seasonal factors increased by 23,146, an increase of 9.3%.

—Jeff Cox

CNBC Pro: Citi Names Its Best Biotech Stock Pick For 2023 – And Lists Up 73%

According to Citi, biotech will remain a “stock picking market” in 2023.

The bank explains how biotech could perform based on different economic scenarios and lists three top picks for 2023.

CNBC Pro subscribers can read more here.

— Weizhen Tan

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