Volatile Hong Kong Stocks, Mixed Asian Markets;  China's PMI contracts

Volatile Hong Kong Stocks, Mixed Asian Markets; China’s PMI contracts

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Macau casino shares cut losses, gain on China visa news

Hong Kong-listed Macau gaming shares trimmed losses after an update to visa policy for mainland Chinese residents seeking to travel to Macau.

China’s immigration office in a statement on WeChat said that mainland residents can travel to the gaming hub through an online visa system from Nov. 1. The move is expected to increase the number of tourists to Macau.

MGM China shares gained 2.89%, Wynn Macau increased 4.92%, galactic entertainment shares rose 2.98%. china sands shares also rose 4.49%. Similarly, SJM Holdings advanced more than 4%.

The bullwhip in gaming stocks came after seeing sharp declines earlier following lockdown notices in areas surrounding a worker’s residence in MGM ChinaThe Cotai casino in Cotai who tested positive for Covid on Sunday.

— Lee Ying Shan

Senior US, Chinese diplomats discuss relationship, Russian war: State Department

US Secretary of State Antony Blinken spoke with Chinese Foreign Minister Wang Yi, discussing the “need to maintain open lines of communication,” according to a State Department readout.

Blinken said he also discussed “responsible” management of competition between the United States and China, without elaborating.

The State Department said Blinken raised the issue of Russia’s war against Ukraine and “the threats it poses to global security and economic stability,” according to the statement.

jihye lee

US dollar has more room to strengthen on rate spreads: Wells Fargo

US dollar has room to strengthen further until early next year, says strategist

the American dollar it is expected to strengthen further on rate differentials as central banks around the world are taking a “less aggressive” tone, according to Wells Fargo.

“We’re starting to see some of the foreign central banks…become a little bit on the less aggressive side,” while the Federal Reserve maintains its aggressive stance, currency strategist Brendan McKenna said on CNBC’s “Squawk Box Asia.”

McKenna said he expects the dollar’s strengthening to continue into the first quarter of next year “at a minimum.”

jihye lee

Australian retail sales up 0.6% in September

Australia’s retail sales rose 0.6% in September from August, official data showed, in line with expectations from a Reuters survey and at the same pace reported in the previous monthly period.

Sales of clothing, footwear and personal accessories rose 2%, while cafes, restaurants and takeaways rose 1.3%.

The nation’s retail volumes are released on Friday with ANZ Research expecting 0.4% quarterly growth.

“This would represent the slowest growth since Covid, but still strong for household spending given the shift from retail to services,” ANZ Research said in a tweet.

— Abigail Ng

Goldman Sachs expects Fed rates to top 5%

Goldman Sachs economists expect the Federal Reserve funds rate to peak at 5%, after raising their forecast for the central bank to hike 75 basis points at the next meeting this week.

Economists led by Jan Hatzius said in a note on Saturday that they are adding another 25bps to their forecasts, now calling for a 50bps hike in December, a 25bps hike in February and another 25bps hike in March.

“Inflation is likely to remain uncomfortably high for a while, which could make continuing to rise in small increments the path of least resistance,” the note said.

jihye lee

Macau Gaming Stocks Fall After Casino Shutdown Over Dealer’s Covid Case

Hong Kong-listed Macau gaming shares fell sharply in early trading after a MGM ChinaCotai’s Cotai casino has tested positive for Covid, according to a government notice.

Several areas related to the case were put on lockdown, according to another notice, with the measures expected to be lifted between November 3 and 5.

MGM China shares fell 2.89%, Wynn Macau fell 2.62%, galactic entertainment shares fell 1.85%. china sands shares also lost 2.29%. SJM Holdings it also fell more than 3%.

Factory activity in China contracted in October, below expectations

China’s factory activity contracted in October compared to September, data from the National Bureau of Statistics showed.

The official print of the manufacturing purchasing managers’ index came in at 49.2, below expectations for a reading of 50, the mark that separates monthly growth from contraction.

In September, the PMI reading stood at 50.1.

China’s official non-manufacturing PMI came in at 48.7, compared to a print of 50.6 in September.

— Abigail Ng

Japan’s industrial production falls for the first time in four months

Japan’s industrial production fell 1.6% in September from August, government data showed. falling more than expected from a 1% drop in a Reuters poll and ending a three-month growth streak.

The drop was led by motor vehicles, chemicals and production machinery, according to the statement.

A government survey forecasting industrial production figures predicts a decline in October, while seeing an increase in November.

—Jihye Lee

CNBC Pro: These 12 Cheap Global Stocks Are Expected To Rise, And Analysts Love Them

Stocks around the world have sold off this year on recession fears and soaring inflation, and now they look cheap.

Analysts say there could be buying opportunities in some stocks that they expect to rise.

To find those stocks, CNBC Pro searched the MSCI World Index for names that met a number of criteria.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Forex Check: Japanese Yen Weakens Beyond 148 Levels

from Japan and in weakened beyond 148 levels against the US dollar in Asian morning trade for the first time since last Wednesday.

The moves come ahead of the Fed’s monetary policy meeting this week, where the central bank is expected to hike rates by 75 basis points, further widening the rate spread between the US and Japan.

The Japanese yen saw some strengthening to 146 levels last week ahead of the Bank of Japan’s monetary decision to hold rates steady, before slowly retreating towards 148 against the dollar.

It last stood at 148.23 per dollar.

— Abigail Ng

China’s factory activity forecast for October will remain unchanged from September

According to a Reuters survey, China’s official Purchasing Managers’ Index for October will remain virtually flat from September.

The reading is forecast to hit 50, the point that separates growth from contraction. PMI impressions compare activity from month to month.

In September, the economy hit a PMI reading of 50.1.

— Abigail Ng

Traders on the lookout for signs of Fed slowdown

Wall Street will closely watch the Fed’s statement this week for signs that the central bank will moderate its pace of rate hikes.

According to the CME FedWatch tool, traders believe there is an 80% chance the Fed will hike rates by three-quarters of a point on Wednesday.

That would take the central bank’s target range to 3.75% to 4%.

Beyond that, however, the market looks more uncertain. There is only a 44% chance of another rally of that size in December.

—Jesse Libra

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