New Zealand offers the largest rate increase ever; Asia Pacific markets were mixed ahead of the Fed’s minutes

New Zealand’s central bank hints at more increases to come

Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said the bank’s only goal is to reach the official money rate to a point where inflation can diminish.

Orr’s comments come after the central bank raised its largest interest rate hike, by 75 basis points.

“Our core inflation rate is very high,” Orr said at a news conference, adding that the central bank is “very much on the path of a tightening cycle.”

In a separate press release shortly after the decision, the RBNZ said, “Committee members agreed that monetary conditions are necessary to continue to tighten further.

– Lee Ying Chan

BYD shares plunge after Berkshire Hathaway stake cuts

shares BYD Hong Kong-listed shares traded down 2.64% after Warren Buffett’s Berkshire Hathaway announced that it had reduced its stake in the Chinese electric car maker.

The filing showed the company sold 3.2 million shares worth about HK$630 million ($80.6 million), according to the HKEX filing, reducing its holdings in the company to 15.99% from 16.28%.

Separately, the company also announced that it will raise the prices of some of its electric models, according to Reuters.

– Jihe Lee

Shares of Kuaishou and Baidu rose after the earnings announcement

CNBC Pro: UBS says self-driving cars could become a $100 billion market in China — and the stock naming to power it

Electric vehicles are rapidly gaining momentum, particularly in China, the world’s largest market for electric vehicles.

But UBS believes that autonomous driving will be an even bigger trend than electrification — with a market size in China alone of about $100 billion by 2030.

Here’s how investors can play this huge trend, according to UBS.

Professional subscribers can read more here.

– Xavier Ong

Xiaomi expected to record a decline in revenue for the third quarter

Xiaomi It is expected to see lower revenues for the third quarter of 2022, according to the median estimate of a Refinitiv poll.

The company is expected to see a 9.66% decrease in revenue to 70.52 billion yuan ($9.87 billion) From July to September, compared with 78.06 billion yuan in the same period last year.

The expected decline is likely due to “lukewarm smartphone sales,” as well as the weak macro environment and consumer sentiment, Daiwa Capital Markets wrote in a note.

Xiaomi shares fell as much as 1.72% in morning trading ahead of the release, and were last down about 1%.

Lee Ying Shan

The strength of the New Zealand dollar after the interest rate hike

The New Zealand dollar rose to 0.6192 per dollar after the central bank raised interest rates by 75 basis points, the largest ever rise.

NZD was last trading at 0.6170 per dollar and New Zealand’s NZX 50 Index was down 0.8%.

New Zealand’s 10-year Treasury yield briefly touched 4.305% shortly after the decision, last trading at 4.235%. Yields move inversely with prices, and the basis point is 0.01%.

– Lee Ying Chan

Singapore releases narrow GDP estimates for 2022

Singapore’s economy is expected to grow around 3.5% in 2022, according to forecasts from the Ministry of Trade and Industry, citing softening external demand expectations in the wake of Europe’s energy crisis and China’s ongoing Covid-related restrictions.

The number is a narrow estimate from its previously forecast range of 3% to 4% — and reflects third quarter’s 4.1% annual growth and 1.1% growth from the previous quarter.

The ministry also said it expects the country’s GDP growth for 2023 to be between 0.5% and 2.5%.

– Jihe Lee

New Zealand’s central bank raises interest rates by 75 basis points

The Reserve Bank of New Zealand raised its official cash rate by 75 basis points, its largest ever rise, to 4.25%.

The decision was in line with analysts’ expectations, according to a Reuters poll.

This is the ninth consecutive increase since the RBNZ first began its rate-raising cycle in October 2021, five of which were increases of 50 basis points.

New Zealand’s inflation rate is currently 7.2%, just below its highest level in three decades.

– Lee Ying Chan

Investors should take turns in the second-tier Chinese tech stock: UBS Global Wealth Management

Investors should take advantage of the bumpy ride in Chinese technology stocks to move into smaller, less established companies, according to Eva Li, head of major China equities in the principal investment office at UBS Global Wealth Management.

“Under current regulations, second-tier players will do better than top-tier players. Take this opportunity to rotate with companies that are second-tier,” like those with flexible income, she told CNBC’s “Street Signs Asia.”

In addition, the tech giants are seen as a “big recovery.” [proxies]The road to eventual full reopening, she said, “will be up and down, and it will be choppy.”

“We’re getting there eventually, but it takes time,” she said.

– Abigail

Stocks soar, the Standard & Poor’s 500 closes above the key 4000 level for the first time since September.

Stocks rose on Tuesday with all three major averages gaining more than 1% as Wall Street bets that interest rate hikes and inflation will ease heading into the end of the year. The S&P 500 also closed at a level not seen since September.

The Dow Jones Industrial Average closed up 397.82 points, or 1.18%, at 34,098.10 points. The Nasdaq Composite Index rose 1.36%, to 11,174.41.

The S&P 500 rose 1.36% to close at 4,003.58, its first close above 4,000 since September.

– Carmen Renick

84% of the 19 S&P 500 52-week highs are all-time records

Nineteen S&P 500 stocks hit 52-week highs so far on Tuesday, and among them, 16 (84%) also touched all-time highs. Three of the 19 (TRV, MRK, IBM) are also in the Dow Jones Industrial Average, and two of them are among the all-time highs:

  • General Parts Company (GPC), the highest since 1948
  • O’Reilly Auto (ORLY), the highest level ever since the 1993 IPO
  • TJXCos. (TJX), an all-time high dating back to the 1987 IPO
  • General Mills (GIS), all-time highs dating back to 1927
  • Monster Beverages (MNST), all-time high returns to predecessor’s Nasdaq listing in 1992
  • Pepsico Inc. (PEP), the highest ever, dates back to Pepsi-Cola’s merger with Frito-Lay in 1965
  • Marathon Petroleum (MPC), all-time highs from Marathon Oil production in 2011
  • Aflac Inc. (AFL), all time through CNBC data history in 1973
  • Arthur Gallagher (AJG), its highest ever since its IPO in 1984
  • Globe Life (GL), the highest level ever for its predecessor data in 1980
  • MetLife (MET), hit all-time highs for going public in 2000
  • Progressive (PGR), all-time highs in 1971
  • Travelers (TRV), an all-time high dating back to a spin-off from Citi in 2002
  • Gilead Sciences (GILD), the highest since April 2020
  • Merck & Co. (MRK), dating back to an all-time high in CNBC history starting in 1978
  • PACCAR (PCAR), all-time high in 1971
  • Quanta Services (PWR), at an all-time high in 1998
  • Snap-On (SNA), the highest level since June 2021
  • International Business Machines (IBM), the highest level since February 2020

There was a 52-week low in the S&P 500 early Tuesday:

  • Tesla (TSLA), lowest since November 2020
  • Medtronic (MDT), lowest since March 2020

No comment.

Scott Schneiber and Christopher Hayes

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