Asia-Pacific markets were mixed with Japanese stocks seeing losses for a second day

The head of India’s central bank warns that the next financial crisis will come from private cryptocurrencies

India’s central bank governor Shaktikanta Das said on Wednesday that the next financial crisis will come from private cryptocurrencies.

Speaking at the BFSI Insight Summit 2022 organized by Business Standard, Das said he is consistent that cryptocurrencies should be banned, adding that they have no intrinsic value and pose risks to the overall economy and financial stability.

Bitcoin was last up about 0.24% at $16,840, according to coin metrics. Ether rose 14 percent to $1,211.77.

Charmaine Jacob

The two-year Japanese bond yield is briefly above zero for the first time since 2015

The yield on two-year Japanese government bonds briefly rose above zero for the first time since 2015 on Wednesday morning. The note gained 2.7 basis points to stand just below the flat line.

Japan’s two-year yield rose above zero for the first time since 2015

The yield on the 10-year JGB jumped more than 3 basis points to stand at 0.451%, also reaching a 2015 high, while the yield on the 30-year JGB rose by 2 basis points to trade at 1.6%.

The yield moves inversely to the price, and the basis point is 0.01%.

– Jihe Lee

HKEX launched an office in New York in an effort to expand its international reach

The Hong Kong Stock Exchange operator launched its New York office in an effort to expand its international reach and grow its global client base.

It said the new office of the Hong Kong Exchange and Clearing Limited (HKEX) will strengthen its link to mainland China and the liquid primary and secondary money markets.

“At HKEX, we are fully focused on supporting the growth ambitions of our clients around the world,” said Nicholas Agozen, Chief Executive Officer of Hong Kong.

He added, “We look forward to deepening our relationships with investors, companies and risk managers across the region, connecting capital with opportunities and east with west.”

About 41% of the trading volume in the Hong Kong money stock market is attributed to international investors. HKEX currently has offices in Beijing, Shanghai and Singapore.

– Lee Ying Chan

Banking stocks in Tokyo rose again as the broader index fell

The Japanese yen is at its strongest level in more than four months

The Japanese yen saw more strength overnight, after the Bank of Japan announced an expansion of yield curve control.

The currency strengthened more than 5% against the Australian dollar and the New Zealand dollar – while it strengthened by 3% against the US dollar.

The yen strengthened after the Bank of Japan announced an expansion of yield curve control

CNBC Pro: Fund manager says recession is “imminent” — and names cheap stocks to play with

Market watchers are increasingly concerned about a looming recession, and fund manager Stephen Glass is no exception.

Against that backdrop, he says he’s focused on dividend-paying companies that trade at attractive valuations.

His picks include a Big Tech name he said is “very cheap” with a “huge margin”.

Professional subscribers can read more here.

– Xavier Ong

Stocks hold the gains, and the loss continues for 4 days

Stocks extended gains on Tuesday, snapping a four-day losing streak.

The Dow Jones Industrial Average rose 92.47 points, or 0.28%, to close at 32,850.01 points. The S&P 500 rose 0.11% to 3,821.73, while the Nasdaq Composite rose 0.01%, closing at 10,547.11.

– Carmen Renick

BoJ Tighter Sooner Than Expected, Signals

The Bank of Japan’s sudden policy shift sent interest rates higher globally, as investors reacted to more evidence of central banks around the world continuing to push interest rates higher.

“It was definitely a surprise. I don’t think anyone expected it,” said Ben Jeffrey, pricing analyst at BMO. The Bank of Japan moved sooner than expected to tighten policy. The Bank of Japan changed the yield curve policy to allow the yield on 10-year Japanese government bonds to move 50 basis points either side of the zero target rate, up from 25 basis points.

The announcement sent interest rates soaring around the world, with yields on Japanese government bonds (JGBs) rising to a 7-year high. Prices move opposite to yield. The US 10-year jumped 3.68%.

“They were definitely the last standing doves, and now they’re still pessimistic but less so,” Jeffrey said. “JGBs are obviously bearish and fixed income globally, but in the long run they should help the yen which will make Treasurys more attractive to Japanese investors next year.”

– Patty Dom

Expect a more challenging environment ahead, Atlantic Equities says

Atlantic Equities analysts expect a more challenging backdrop for the global consumer in 2023.

“Inflation may have peaked on a headline basis but input costs remain high and companies will look to hold out at least if they don’t take in more pricing in some cases,” analyst Edward Lewis said in a note on Tuesday. “That could become more challenging as resilience levels begin to normalize as US retailers begin to resist pricing, in line with where European peers have been all year.”

He highlighted Coca-Cola and Pepsi as some of his favorite consumer picks, noting “category momentum, continued investment and strong execution underpinning high growth.”

— Tanaya Machel

The stock market has fallen over $11.7 trillion so far this year

It’s been a tough year for stocks, which are currently in a bear market and down so far.

From the market’s annual high on Jan. 3 through this morning, US stocks have shed more than $11.7 trillion in market value, according to data from Bespoke Group.

“The maximum withdrawal was $13.6 trillion at the low of 9/30, so we have seen the market cap increase by just under $2 trillion since then,” analysts wrote on Tuesday. “In dollar terms, this downturn was sharper than anything investors have ever seen. That’s quite a downturn if you ask us!”

Of the $11.7 trillion, losses of more than $5 trillion come from just five companies – Apple, Microsoft, Amazon, Alphabet, Meta and Tesla.

– Carmen Renick

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