Hong Kong’s Hang Seng rises 2%, leads Asian markets higher after Powell’s inflation comments

Goldman Sachs expects China to cut RRR by 25 basis points in Q4

Goldman Sachs says it expects the People’s Bank of China to cut its reserve requirement ratio by 25 basis points in the fourth quarter on weaker-than-expected inflation readings.

This planned reduction would help offset the large number of MLF loans coming due, the bank said in a note.

Bank economists, including Xinquan Chen, said in a note that they expect consumer inflation in China to remain subdued, while producer prices continue to fall in the coming months. .

—Jihye Lee

Japanese yen strengthens after officials’ comments

The Japanese yen strengthened 1% on comments from officials including Bank of Japan Governor Haruhiko Kuroda, who called the currency’s rapid movements “undesirable”.

Kuroda’s comments come after his meeting with Prime Minister Fumio Kishida during which the two men discussed recent currency movements, Reuters reported.

Earlier, Finance Minister Shunichi Suzuki also said the government would not rule out any options on foreign exchange trading, which the minister has repeatedly described as “quick and one-sided”.

Oil prices recover after demand concerns wane

Oil prices rose on Friday as traders weighed Russia’s threat to halt energy exports and aggressive central bank rate hikes.

Brent crude futures climbed 0.34% to settle at $89.45 a barrel, while US West Texas Intermediate added 0.17% to $83.68 a barrel.

Prices are also supported as the Biden administration is not consider new releases of reserves of the United States Strategic Petroleum Reserve (SPR).

— Lee Ying Shan

HSBC says latest inflation readings from China allow PBOC to maintain accommodative monetary policy

China’s latest inflation figures give the People’s Bank of China room to maintain its current monetary stance, HSBC said in a note.

“The moderation in price pressures gives the PBOC room to remain dovish,” said China economist Erin Xin.

Xin added that the central bank is likely to further relax the use of structural tools such as “additional lending quotas for priority areas such as manufacturing and green investment.”

—Jihye Lee

China’s consumer price index rises 2.5% in August, misses estimates

China’s consumer price index rose 2.5% year on year in August, down from the 2.7% figure recorded in July, National Bureau of Statistics data showed, missing a Reuters poll forecast of 2.8%.

The producer price rose 2.3% for the month, also slower than a 4.2% rise for July and missing estimates of 3.1%.

A Nomura report earlier this week said 12% of China’s total GDP was affected by Covid controls on a weighted basis, up from 5.3% last week.

Jihye Lee

The worst is not over for the Japanese yen, analyst says

The depreciation of the Japanese yen is one of the most “rigorous” and “easiest” measures to explain because it is “based on real fundamentals”, Monex Group Director Jesper Koll told CNBC, adding that could fall further in the months to come.

It’s the “most textbook-driven forex move I’ve seen in 30 years,” he said.

Koll pointed to the interest rate differential between the United States and Japan as one of the “powerful forces” that will move the yen, adding that the likelihood of the Bank of Japan raising rates is “close to zero”.

Read the full story here.

—Charmaine Jacob

CNBC Pro: Uranium is “on a tear” right now. Here are two ETFs to play with

One niche in the commodities market – uranium – has been a beacon of hope over the past month, with its performance outpacing even that of the broader energy sector.

Two ETFs have surged in recent weeks as the West strives to reduce its dependence on Russian energy.

Pro subscribers can learn more here.

—Weizhen Tan

Bilibili plunges 16% at open after reporting second-quarter loss

Hong Kong-listed shares of Chinese video and games company Bilibili plunged more than 16% at the open after reporting a failure in second-quarter earnings overnight.

The company reported a net loss of more than $300 million nearly double the amount of losses reported for the same period a year ago.

Citi Research Vice President for Internet and Media in China Brian Gong was optimistic, however, and said regulatory concerns about the country’s gambling industry were easing.

Highlighting the government’s resumption of gambling licenses, Gong said that “although the number is lower than expected, it shows that the environment is improving,” he said on CNBC’s “Squawk Box Asia.” , adding that “the worst is behind us”.

—Jihye Lee

CNBC Pro: Citi Just Upgraded Eight Chinese Stocks

China’s “economic recovery appears to be slower than market expectations,” Citi stock analysts said in a Sept. 2 report.

They downgraded 12 Chinese stocks – but improved eight. Here are three stocks from their updated list of top Chinese stocks traded in Hong Kong and the mainland to buy.

Pro subscribers can learn more here.

Evelyn Cheng

US stock futures opening little changed

US stock futures were little changed after a choppy session in the major averages as Wall Street weighed the pace of future interest rate hikes.

Dow Jones Industrial Average futures rose 23 points, or 0.07%. S&P 500 and Nasdaq 100 futures rose 0.08% and 0.13% respectively.

—Sarah Min

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