PETER’S BUSINESS & FINANCE BRIEFING – Wednesday 28 February 2024, 06:00 Hong Kong
• Easing Japanese inflation complicates end of negative interest rates • Hong Kong home prices at more than 7-year low • Shenzhen rolls out plan to boost car exports
Wednesday’s Opening Call
Hang Seng (Hong Kong) Projected Open: 16,822 +32 points, +0.2%
Nikkei 225 (Japan) Projected Open: 39,320 +80 points, +0.2%
Quick Summary - 4 Things To Know Before Asian Markets Open
Ahead of Financial Secretary Paul Chan’s Budget speech later this morning, the ASEAN+3 Macroeconomic Research Office (AMRO) has published its 2023 Annual Consultation Report on Hong Kong. The report concludes that the Hong Kong economy is poised to sustain its steady recovery, moving towards trend growth this year. The report recommends that “with growing external uncertainties and geopolitical risks, it would be important for Hong Kong to further diversify its economic base, widen its global reach, and continue to address structural challenges such as ageing population, housing supply, and social inclusion.”
Hong Kong’s lived-in home prices fell for the ninth straight month in January, dropping 1.57% and leaving the city’s official home price index at levels last seen more than seven years ago, the latest government data showed. Secondary market prices of Hong Kong homes have retreated 23% from their peak in September 2021, according to government statistics. The nine-month losing streak, the longest since the outbreak of Sars in 2003, led to an aggregate fall of 13.5% in Hong Kong home prices from April 2023. The latest data piles further pressure on Financial Secretary Paul Chan to remove property cooling measures that were first introduced in 2010, in his budget later today.
Japan’s core inflation slowed for the third consecutive month, complicating the path for the Bank of Japan to lift interest rates. The core Consumer Price Index (CPI), which excludes fresh food but includes fuel costs, slowed to 2.0% in January from 2.3% in December, the lowest reading since March 2022. However, the core inflation print came in above economists’ expectations for a further slowdown to 1.8%. Japan’s core inflation print is now within the central bank’s 2% target after exceeding that level for 21 consecutive months.
The city of Shenzhen has rolled out plans for a big expansion of car exports, a move that is likely to fan fears among western countries of overcapacity in the industry. The municipal government of Shenzhen, where the world’s largest electric vehicle maker BYD has its headquarters, unveiled 24 measures including support for factory construction, opening new sea routes and allowing another 20 companies to export second-hand cars, according to a statement released by the city’s commerce bureau late on Monday.
AMRO: HK Economy Poised To Sustain Steady Recovery
Ahead of Financial Secretary Paul Chan’s Budget speech later this morning, the ASEAN+3 Macroeconomic Research Office (AMRO) has published its 2023 Annual Consultation Report on Hong Kong. The report concludes that the Hong Kong economy is poised to sustain its steady recovery, moving towards trend growth this year. The report recommends that “with growing external uncertainties and geopolitical risks, it would be important for Hong Kong to further diversify its economic base, widen its global reach, and continue to address structural challenges such as ageing population, housing supply, and social inclusion.”
Following a contraction in 2022, Hong Kong’s economy rebounded to record 3.2% growth in 2023. With the lifting of containment measures and the full reopening of Hong Kong and Mainland China earlier last year, the economy gradually revived in 2023, primarily driven by robust domestic consumption and a surge in inbound tourism. The economy is expected to grow by 3.5% in 2024, supported by domestic consumption, continued resumption of cross-boundary travel and tourism and the provision of targeted fiscal support. Inflation may face some upward pressures, reflecting the economic recovery and the tightening labour market, but should remain moderate for 2024, according to AMRO.
However, the report notes that “while Hong Kong’s near-term growth outlook has improved, uncertainties remain high, and the risks are tilted to the downside. A protracted global trade down cycle is a significant concern, given the economy’s heavy connections with the global economy. A higher-for-longer US policy rate could lead to tighter-for-longer domestic financial conditions in Hong Kong, dampening its investment and consumption. The outlook for Hong Kong’s property market appears challenging, which could dampen the sentiment of households and firms. A faltering economic recovery in Mainland China would also weigh on Hong Kong’s economic growth. In the medium term, Hong Kong’s vulnerability to an escalation of US-China tensions and a broadened geoeconomic fragmentation is a major risk.
Finally, the report recommends as the economic recovery is still at an early stage, it is appropriate to withdraw the pandemic induced fiscal stimulus policies in a gradual and measured manner. The smaller fiscal stimulus budgeted for FY2023 is expected to continue to support the recovery. As the recovery has been uneven across sectors, it would be appropriate for the fiscal support measures to focus on vulnerable sectors and households. The government should seek to rebuild fiscal reserves when the economy is fully recovered.” It also urges that “addressing near-term supply-side constraints is essential to bolstering a fuller economic recovery. To ensure a full recovery in sectors such as tourism and transportation, it is crucial to resolve supply side issues in human resources and to continue providing support to firms. The policy to facilitate labour importation and attract skilled talents can significantly contribute to sustaining economic growth and strengthening Hong Kong’s position as an international financial and business hub.
Hong Kong Sees First Trade Surplus In 2 Years
Hong Kong's exports soared 33.6% y/y in January while imports grew 21.7%, bringing a trade surplus to the SAR for the first time in two years. Hong Kong posted a trade surplus of US$3.6 billion in January 2024, shifting from a deficit of US$25.4 billion in the same month of the previous year and marking the first trade surplus since January 2022. Year-on-year, exports soared to a three-year high of US$388.7 billion, mainly driven by a surge in sales for electrical machinery, apparatus & appliances (42.8%), power generating machinery & equipment (39.2%), and professional, scientific, controlling instruments & apparatus (37.2%). Shipments rose to China (54.2%), India (51%), Taiwan (46.8%), UAE (34.1%), Vietnam (28.7%), the US (11.5%), Macao (8.6%), and Japan (5.8%). Meanwhile, imports advanced at a softer 21.7% to US$385.1 billion.
Hong Kong Home Prices Fall For Ninth Straight Month
Hong Kong’s lived-in home prices fell for the ninth straight month in January, dropping 1.57% and leaving the city’s official home price index at levels last seen more than seven years ago, the latest government data showed. The official price index of second-hand units declined to 306.4 in January from 311.3 in December, hitting the lowest level since a 304.3 reading in October 2016, according to the Rating and Valuation Department. Secondary market prices of Hong Kong homes have retreated 23% from their peak in September 2021, according to government statistics. The nine-month losing streak, the longest since the outbreak of Sars in 2003, led to an aggregate fall of 13.5% in Hong Kong home prices from April 2023.
The latest data piles further pressure on Financial Secretary Paul Chan to remove property cooling measures that were first introduced in 2010, in his budget later today. Curbs include a special stamp duty applied to a residential property resold within 24 months, a buyers’ stamp duty (BSD) for non-permanent residents and a double stamp duty on flats for second-time purchasers. In his second policy address in October, Chief Executive John Lee announced several measures to relax the property curbs. These included halving the BSD to 7.5% for non-permanent residents and residents buying a second or additional home. A special stamp duty of 10% was also waived for homeowners who resell their property after two years, from the previous three-year requirement. “If the property curbs can be significantly reduced or even completely withdrawn as expected by the market, it will promote a significant increase in transaction volumes and drive up property prices,” said Derek Chan, research head at property agency Ricacorp Properties. However, the Financial Secretary may be constrained by a ballooning budget deficit estimated to exceed HK$100 billion (US$12.8bn).
Taiwan Export Orders Unexpectedly Rise
Taiwanese exports rose 1.9% year-on-year to US$48.42 billion in January, beating market expectations of a 3.6% fall and recovering from a 16% drop in the previous month. The upturn was driven by a strong rebound in demand for electronic products (16.1% vs -12.9% in December), electrical machinery products (11.4% vs -5.4%), and basic metals (26.2% vs -1.7%). Export orders rose to ASEAN countries (117.9%), Hong Kong & China (28%), and the US (2.7%). Meanwhile, demand continued to drop in Japan (-21.2%), and Europe (-50%).
Japan’s Core Inflation Slows Complicating BoJ’s Rate Path
Japan’s core inflation slowed for the third consecutive month, complicating the path for the Bank of Japan to lift interest rates. The core Consumer Price Index (CPI), which excludes fresh food but includes fuel costs, slowed to 2.0% in January from 2.3% in December, the lowest reading since March 2022. However, the core inflation print came in above economists’ expectations for a further slowdown to 1.8%. Japan’s core inflation print is now within the central bank’s 2% target after exceeding that level for 21 consecutive months. That reduces the pressure on the Bank of Japan to raise interest rates following months of speculation that rising wages and price increases would force its hand. Meanwhile, core-core CPI (excluding food and energy) also cooled to 3.5%, down from 3.7% y/y in December. The headline CPI slowed to a 22-month low of 2.2% from 2.6% in the prior month. Food prices in Japan rose by 5.7% from a year earlier in January, easing from a 6.7% increase in the previous month and marking the softest gain since September 2022. Monthly, consumer prices were flat after edging up 0.1% in December. The economy contracted for the second straight quarter in December because of weak consumption, putting the economy in a technical recession.
Carlos Casanova, Senior Asia Economist at Union Bancaire Privée, Hong Kong, wrote in a note, “going forward, we think this will fuel expectations of an April rate hike amongst market participants and more hawkish committee members. However, as we have explained ad nauseum, the drivers of inflation remain exogenous. The BOJ is looking for signs that demand-pull inflation will support core CPI around 2.0% in a sustainable manner. For this to take place, BOJ is hoping for a “virtuous cycle” to take hold. This is a situation where higher cost-push inflation supports stronger wage growth. If the pace of wage growth exceeds inflation, that should fuel domestic demand and stoke changes in corporate behaviour.”
Following the data, the two-year Japanese Government Bond yield climbed to the highest since 2011 as bets increased that the country’s long era of negative interest rates could end as early as March. The yield rose 1 bps to 0.165% after the government data showed inflation slowed less than economists estimated. Governor Kazuo Ueda also said last week that a virtuous economic cycle will strengthen, referring to rising inflation accompanied by higher wages and employment, in another signal that policy normalisation is coming.
Eurozone Bank Lending Growth Slows To Near 9-Year Low
Bank lending to households in the eurozone increased by 0.3% year-on-year to €6.870 trillion in January, below economists’ expectations of 0.4%. It marks the slowest pace since March 2015, further underscoring the significant deceleration in the bloc's economy due to the European Central Bank's unprecedented tightening measures implemented over the past months. Additionally, lending to companies rose by 0.2%, after an upwardly revised 0.5% increase in December. The overall private sector credit growth, encompassing both households and non-financial corporations, stood at 0.4%, unchanged from the previous month.
UK Shop Price Inflation Lowest In Nearly 2 Years
Inflation in the UK retail sector slowed to 2.5% in February, down from 2.9% in January and the lowest rate since March 2022, the British Retail Consortium said Tuesday. Non-food inflation was steady at 1.3%, while food inflation moderated from 6.1% to 5% in its 10th consecutive decline. “Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise. Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope,” BRC CEO Helen Dickinson said.
US Durable Goods Orders Fall Most Since April 2020
Orders for manufactured durable goods (goods that have an average life of at least three years) in the United States slumped by 6.1% month-over-month in January, more than analysts’ expectations of a 4.5% fall and following a 0.3% decrease in December. This marked the biggest monthly decline in durable goods orders since April 2020, primarily driven by transportation equipment, which saw a decrease of -16.2% (vs -0.6% in December), driven by reduced demand for nondefense aircraft and parts (-58.9% vs 1%). Excluding defence, new orders tumbled 7.3% (vs 0.1%). Orders for nondefense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 0.1%, after a 0.6% decrease in December.
US Consumer Confidence Drops For First Time In Four Months
US consumer confidence fell to its lowest level since November, interrupting a three-month rise in the measure amid rising uncertainty in the labour market and political environment. The Conference Board’s consumer confidence index dropped to a reading of 106.7 this month, falling from a downwardly revised 110.9 in January, the organisation said on Tuesday. Economists expected a level of 115. Moreover, the Expectations Index nudged down to 79.8, just below the 80 benchmark that has been consistent with recessions. Although 12-month inflation expectations ticked down to 5.2% in February as price growth slowed, consumers perceived the likelihood of a recession in the next year increased as the job market cooled. Written responses to the survey showed easing fears about food and energy prices, but “they are more concerned about the labour market situation and the US political environment,” said Dana Peterson, chief economist at The Conference Board.
US Home Prices Rise Faster
The S&P CoreLogic Case-Shiller 20-city home price index in the US rose 6.1% year-on-year in December, the most since November 2022, after a 5.4% rise in the previous month. However, increased financing costs appeared to precipitate home price declines in the fourth quarter, as 15 markets saw lower values compared to September. For the full year of 2023, prices exceeded the average annual home price gains over the past 35 years.
Chinese Coastguard Enters Taiwan Restricted Waters
Five Chinese coastguard ships entered prohibited or restricted waters around Taiwan's frontline islands of Kinmen on Monday but left shortly after being warned away, a Taiwan minister said on Tuesday amid a continued rise in tensions with Beijing. The patrol marks at least the third time in the past week that China has sent official vessels into waters declared off-limits by Taiwan. Two Chinese citizens drowned when chased out of the waters by Taiwan’s coastguard earlier this month. Kuan Bi-ling, head of Taiwan's Ocean Affairs Council, which runs the coast guard, told reporters at parliament that the Chinese boats left the area shortly after Taiwan's coast guard told them to leave. "The political significance is high, which is a form of a declaration of sovereignty," she said. China's coast guard, which has no publicly available contact details, has yet to comment.
Chinese Research Ships Increase Activity Near Taiwan
The Financial Times is reporting that Chinese maritime research vessels have dramatically increased incursions into waters just 24 nautical miles off Taiwan’s coast, as Beijing signals its growing surveillance capabilities and collects data crucial for naval warfare. The latest operations include an unprecedented sailing by China’s newest research ship, a drone carrier with links to the People’s Liberation Army, down the full length of Taiwan’s east coast in November. The Zhu Hai Yun’s voyage was one of nine such intrusions since September, a sharp uptick from just two in each of the previous three years, according to tracking data of nearly 80 ships from Spire Global, a satellite data company, analysed by the Financial Times. “This represents one more tool the People’s Republic of China is using in what I call the all-domain pressure campaign against Taiwan,” said Christopher Sharman, director of the China Maritime Studies Institute at the US Naval War College. “Where the maritime research vessels go is where Chinese submarines will go in the future,” Mr. Sharman said. The Zhu Hai Yun “really helps paint the picture of that undersea environment for China’s military”, he added. “It has implications for Taiwan and for any potential intervention. Operating east of Taiwan would certainly affect anyone approaching from further in the east.”
Chinese Acquisitions Equal Lowest In A Decade
Europe saw the lowest number of company takeovers by Chinese investors in more than a decade in 2023, with the overall value of deals also falling, according to data published Tuesday by EY. “Expansion into Europe through M&A activities is currently no longer a high priority in the corporate strategy of many Chinese companies,” said Yi Sun, partner and head of China Business Services in the Europe West region at EY. “While acquisitions are becoming less important in Europe, some Chinese investors are focusing on building mega-factories in Europe, particularly in the areas of electric cars and batteries.” The Netherlands again attracted by far the most Chinese investment last year, followed by Germany, Switzerland and the UK.
Shenzhen Rolls Out Plan To Boost Car Exports
The city of Shenzhen has rolled out plans for a big expansion of car exports, a move that is likely to fan fears among western countries of overcapacity in the industry. The municipal government of Shenzhen, where the world’s largest electric vehicle maker BYD has its headquarters, unveiled 24 measures including support for factory construction, opening new sea routes and allowing another 20 companies to export second-hand cars, according to a statement released by the city’s commerce bureau late on Monday. The policy was crafted to “seize the opportunity from the development of car exports” and build an industrial cluster bridging car production, shipping and trade, the statement said, while aiming to turn Shenzhen into “a new generation world-class auto city”. Local officials also said they would introduce services to support car exporters, including improving export insurance, speeding up tax refunds and encouraging Chinese banks to provide consumer financing for overseas car buyers.
The plan also called for exporters to purchase more car-carrying ships to create a Chinese-owned fleet of roll-on, roll-off vessels. BYD has already launched its own ship, which can carry 7,000 vehicles, to transport cars from China to Europe and plans to expand its ship fleet to eight in the next two years. On Monday, after a month-long journey from Shenzhen, Chinese-made cars began rolling off BYD’s Explorer No 1 into a German port for the first time.
The EU last October initiated an anti-subsidy investigation on imported EVs from China. European Commission president Ursula von der Leyen pledged to defend Europe’s auto industry against cheap Chinese exports driven by subsidy-fed overcapacity. Carmakers such as Renault and Stellantis have warned that a wave of cheaper Chinese models will undercut those produced by European companies.
US officials this month warned Beijing that Washington and its allies would take action if China tried to ease its industrial overcapacity problem by dumping goods on international markets. Last year, China overtook Japan as the world’s largest car exporter, sending 5mn vehicles overseas. The value of the country’s car exports jumped 74% from a year earlier to US$78bn, according to Chinese customs data. China’s commerce ministry has called for the “healthy development” of the country’s overseas EV expansion, including co-operating more with foreign partners and utilising free trade deals.
Sony To Lay off 8% Of Workers From PlayStation Division
Sony Interactive Entertainment on Tuesday said it will lay off about 900 employees in its PlayStation unit, or 8% of its global workforce, becoming the latest technology company to announce headcount trims. “After careful consideration and many leadership discussions over several months, it has become clear changes need to be made to continue to grow the business and develop the company,” the unit’s President and CEO Jim Ryan said in an email to employees, released publicly by the company. He added that employees across all of the company’s regions will be impacted by the layoffs. PlayStation’s London studio will close in its entirety, with several other studios due to be affected.
Shein Considers Alternative Listing Venues To NY
Fast-fashion company Shein, founded in China but now headquartered in Singapore, is shopping for alternative listing venues should it struggle to IPO in New York, because of resistance from US lawmakers. Senator Marco Rubio was among those asking the SEC to block its listing saying the company needs to disclose more about its operations in China. Another member of US Congress last year asked for a probe into Shein’s cotton supply from Xinjiang. One of Shein’s potential homes could be London, which has struggled recently to attract high-profile listings. Bloomberg News is reporting that Shein is in the early stages of exploring the London option as it has judged it unlikely that the US Securities and Exchange Commission will approve its IPO. Other venues including Hong Kong or Singapore may also be considered. A listing in London would be a potential boon to the beleaguered market, after one of the worst years for IPOs in its modern history. About US$1 billion was raised in the UK via IPOs last year, the lowest level in decades, according to data compiled by Bloomberg. Shein would need to file a new overseas listing application with Chinese regulators if it decided to switch to London or elsewhere.
A pioneer of ultra-fast fashion with items such as shirts and swimsuits for as little as US$2, Shein filed last year for a US IPO aiming for a valuation of US$80 billion to US$90 billion. Private trades in late 2023 valued the company much lower, at about US$50 billion.
Asian Equities Mainly Higher Ahead Of US GDP Data
Asian equities largely rose on Tuesday as traders waited for an updated US GDP estimate for the fourth quarter due for release later today. Shares in Australia, Japan, Hong Kong and China advanced, while South Korean stocks declined.
Japanese stock markets continued to climb to historic highs despite official data showing slowing inflation in Asia’s second-largest economy. The Nikkei 225 traded just 6 points higher to close at 39,240. South Korea’s Kospi lost 0.8% in spite of a recent government announcement of policies in support of the country’s capital markets.
In Australia, the S&P/ASX 200 Index edged up 0.1%, rising for the fourth straight session. Australia’s largest oil and gas developer Woodside Energy has recorded a 74% drop in annual profits because of lower liquefied natural gas prices and a large write-off in the value of a Gulf of Mexico development. Net profit dropped 37%. Shares of Woodside rose 0.9% in Sydney.
In India, the BSE Sensex closed 0.4% higher, approaching the record high touched last month. Shares of Paytm owner One 97 Communications fell 0.1% after the company’s chief executive officer stepped down from the board of its payments bank unit. The company said in a release late Monday that Vijay Shekhar Sharma would exit his role as a non-executive chairman and board member of Paytm payments bank in a major board overhaul.
China Stocks Close To 3-Month Highs
The Shanghai Composite index closed 1.3% higher at 3,015, rising above 3,000 for the first time since 4 December 2023. The Shenzhen Component also surged 2.2% to a near two-month high. Investors are looking forward to the National People’s Congress that begins on March 5 for signs of further policy support from Beijing. China's PMI data for February is due Friday, with investors hoping that growth in the service sector may accelerate due to activity related to the Spring Festival break.
Artificial intelligence firms rallied on a robust outlook for the sector, driven by the AI boom in the US. Gains in the technology sector were led by Foxconn Industrial (9.4%), Zhongji Innolight (8.7%), IEIT Systems (6.8%), iFLYTEK (6%) and COL Group (4.5%).
Hong Kong stocks rose for the first time in three sessions. The Hang Seng jumped 156 points, or 0.9%, to end at 16,791, swinging from a sharp drop in morning trading. The Tech index surged 3.2%. Li Auto soared 25.5% to the highest since August 2023, after making its first-ever annual net profit. Meanwhile, Semiconductor Manufacturing jumped 10.2%, while Innovent Biologics rose 7.2% and Tingyi Holdings climbed 3.2%. Electricity distributor CLP added 4.4% after announcing earnings.
European Markets Quiet Ahead Of Economic Data
Major bourses in Europe were slightly higher on Tuesday, rebounding from small losses the day before, and approaching multi-year highs once again, as traders await key economic data due this week while keeping an eye on corporate news. The STOXX 600 edged up 0.1%, led by mining stocks, which gained 1.7%. Media stocks fell 1.1%. Germany’s DAX increased 0.8%, notching a fifth straight day of gains and reaching a new record high. The FTSE 100 was flat on the day.
Shares in the French retailer Casino were up more than 43% after Paris’ Commercial Court approved its restructuring plans late on Monday. The move still leaves the shares at about 1% of their value a decade ago. Shares in the Euronext-listed engineering group GTT climbed almost 9% after it announced an increase in revenues and earnings in 2023. Shares in the UK asset manager Abrdn fell 3.3% after it posted a pre-tax loss of £6mn for 2023, down from a loss of £612mn in 2022. Luxembourg-headquartered laboratory group Eurofins fell 6.7% after it said revenues declined by 2.9% year-on-year in 2023.
US Stocks Mixed
US stocks were mixed Tuesday as traders awaited key economic data later in the week, including PCE inflation and the second GDP growth estimate. The S&P 500 inched up 0.2% to 5,078. The Dow fell 97 points, or 0.3%, to close at 38,972. Both the Dow and S&P 500 have eased from record highs hit last week after Nvidia’s stellar earnings report. The Nasdaq added 0.4% to end at 16,035. Small caps outpaced the main US indices. The Russell 2000, which tracks 2,000 small cap stocks, was up 1.3%, its fourth day of gains.
Apple rose 0.8% after Bloomberg reported that the company will wind down its team working on electric cars, called Special Projects Group. The news signals that Apple will cease its secretive effort to build a car to rival Tesla. The program employed thousands of employees but never fitted with Apple’s core business of electronics and online services.
Norwegian Cruise Lines jumped almost 20% after it shared an optimistic full year outlook and reported its first full-year profit since 2023. Retail giant Macy’s advanced 3.4% after announcing it would close around 150 of its struggling stores following a revenue miss in the prior quarter. Zoom Video rose 8% following earnings that exceeded Wall Street expectations. Shares of Constellation Energy jumped almost 17% to a record high after the clean energy producer shared a bullish outlook and plans to increase its dividend
US 10-Year Treasury Yield Nears 3-Month High
The yield on the US 10-year Treasury note was above the 4.3% mark, holding just under the almost three-month high of 4.33% reached on February 22nd. New data showed that durable goods orders contracted more than markets expected at the sharpest pace since April 2020 in January, while new home sales rose less than expected. The 10-year ended the day 4 bps higher at 4.31%. Fed Funds futures are pricing odds of 59% that the Federal Reserve will deliver its first interest rate cut by June.
Dollar Steady Ahead Of PCE Inflation Data
The dollar index remained unchanged around 103.8 on Tuesday as investors awaited the release of key data, which could impact the Federal Reserve's upcoming policy decisions. Thursday's report on the personal consumption expenditures price index, the Fed's key inflation measure, is highly anticipated. The Japanese yen gained 0.1% against the dollar, reaching ¥150.50, following inflation figures that have raised expectations of the Bank of Japan ending its negative interest rate policy later this year. The euro was 0.1% lower at $1.0843. Sterling was unchanged at $1.2680. There was no change in the yuan in onshore markets ahead of Friday’s PMI data. It was trading at Rmb 7.1977 in Shanghai.
Gold Sees Steady Trading
Gold was almost unchanged on the day at $2,030 an ounce, remaining above the levels seen before last week’s CPI pint.
Oil Rises For 2nd Session
Crude oil futures extended gains on Tuesday, following a 1.1% rise in the previous session due to supply concerns and a stronger US physical market. Uncertainties persist over a possible Gaza ceasefire, with Houthi rebels in Yemen continuing to disrupt Red Sea shipping, leading to higher freight costs and shipment delays. Brent crude oil settled 1.2% higher at $82.66 a barrel.
Bitcoin Soars Above $57,000
Bitcoin surpassed $57,000 for the first time since late 2021. In US trading the world’s biggest cryptocurrency rose almost 5% on the day to $57,130. New US-listed ETFs launched in mid-January have helped drive the rally in recent weeks, with more than US$6 billion pouring into the tracker funds already. The combined value of digital assets now stands at roughly US$2.2 trillion, says CoinGecko, compared with a low of about US$820 billion during the bear market of 2022, when FTX and other platforms collapsed.
Peter Lewis’ Money Talk Podcast
On Wednesday’s “Peter Lewis’ Money Talk” podcast, I’ll be joined by Enzio von Pfeil, capital preservation specialist at Financial Shield, and Richard Harris, Chief Executive Officer at Port Shelter Investment Management. With a view from Japan is John Beirne, Principal Economist at the Asian Development Bank.
The podcast is also available on Apple Podcasts, Google Podcasts and Spotify.
Spotify
Google Podcasts
https://podcasts.google.com/feed/aHR0cHM6Ly9hcGkuc3Vic3RhY2suY29tL2ZlZWQvcG9kY2FzdC8xNDI3NDAxLnJzcw
Apple Podcast
This podcast is sponsored by online financial services company Surfin Group, which is headquartered in Singapore and offers online financial services to 30 million customers across 10 countries. You can find out more about them by going to their website www.surfin.sg
