Stocks rally ahead of RBA decision; Caixin PMI less than 50

The Reserve Bank of Australia raised interest rates by 25 basis points to 2.85%, in line with the average forecast of analysts in a Reuters poll.

This is the seventh consecutive tightening move by the Reserve Bank of Australia in an effort to control inflation in the country.

The Australian dollar It rose to around $0.6440 before the decision, and was last traded at $0.6429 after the advertisement.

At the previous meeting in October, the central bank raised interest rates by 25 basis points, less than the expected increase by half a point.

– Abigail Ng

Hong Kong-listed technology shares led gains in the broader Hang Seng Index, with Mituan Gain more than 10% in the morning session.

Tencent 8.56% profit Ali Baba rose 7.2% and xiaomi 4.3% profit. JD.com It also rose 6.06%.

The move comes after Caixin PMI data for factory activity in China came in slightly better than expected, according to CMC Markets analyst Tina Teng.

– Jie Lee

Mainland China and Hong Kong markets underperformed their Asia Pacific counterparts in October.

The Hang Seng The index stumbled at its lowest level since April 2009 after losing 14.55% to Monday’s close.

Meanwhile, shares in Australia, Japan and South Korea posted single-digit gains to close out the first month of the fourth quarter, while the Shanghai Composite fell 4.33%.

Japanese stocks closed at their highest levels since September 20, but the major APAC indexes have been under water since the start of the year.

– Abigail Ng

After the stock market rally in OctoberInvestors debate whether stocks have bottomed or whether there is another short-term bounce.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is in the latter camp, and argues that the rally, once again, appears temporary.

He told CNBC what he thinks investors should buy — and short.

CNBC Pro subscribers can read more here.

– Weezin Tan

The Caixin Manufacturing PMI for October showed that factory activity contracted for the third consecutive month.

The reading came in at 49.2, compared to expectations of a reading of 49. In September, the manufacturing PMI was at 48.1, below the 50 point mark that separates growth from contraction.

PMI readings compare activity from month to month.

Official data from the National Bureau of Statistics came in at 49.2 on Monday, missing expectations for a reading of 50.

– Abigail Ng

Hong Kong’s GDP declined by 4.5% in the third quarter of the year compared to the same period a year ago, advance estimates From the Census and Statistics Department showed on Monday.

This is the worst contraction since the second quarter of 2020. Analysts polled by Reuters had forecast 0.7% growth, while GDP fell 1.3% in the second quarter.

“The deteriorating external environment and continued disruptions to cross-border land cargo flows dealt a serious blow to Hong Kong’s exports,” the statement said, adding that the decline in GDP was “mainly attributable to the weak performance in external demand during the quarter.”

Fixed capital formation, or investment, fell 14.3%, while exports and imports also declined.

– Abigail Ng

Citi chose a large electric car maker as one of the “best” buying ideas among Chinese stocks.

It expects shares in the automaker to rise more than 260% over the next 12 months as sales of electric vehicles soar.

CNBC Pro subscribers can read more here.

– Ganesh Rao

Data from South Korea’s customs agency showed that South Korea’s trade deficit widened to $6.7 billion for the month of October from a revised figure of $3.78 billion in September.

Imports rose 9.9% to $59.18 billion compared to the same period last year, while exports fell 5.7% to $52.48 billion.

The latest data shows the largest drop in exports since August 2020, according to FactSet.

– Jie Lee

Tesla may be the preferred investor for exposure to the electric car industry, but Citi and HSBC have identified two alternatives to play to the growing demand for electric cars.

Professional subscribers can Read more here.

– Xavier Ong