China’s economic data and Japan’s GDP miss expectations
Hong Kong shares of Chinese companies fall after announcement of US delisting plans
Fund manager says bear market rally won’t last and reveals how to position for it
Top tech investor Paul Meeks reveals if it’s time to get into tech
Tech stocks were among the hardest hit in the first half of the year as investors fled to safety amid a broad sell-off in the market. But investor interest in the sector appears to be picking up once again, raising the question: is it time to get back into the sector?
Leading investor and portfolio manager Paul Meeks shares his strategy for trading the sector, what he’s seeing in the market, and his best ideas in the field.
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— Zavier Ong
High prices in Japan discourage spending, professor says
Japan’s gross domestic product for the April-June quarter beat expectations in part because of high prices, according to Sayuri Shirai, a professor at Keio University.
Consumption growth has not been strong despite the easing of Covid restrictions as gasoline, utility and food prices are “very expensive”, she told “Squawk Box Asia” from CNBC.
People go to restaurants and amusement parks, but high prices discourage spending, she said.
Capital expenditure, on the other hand, was higher than markets expected, but Shirai said that was not surprising.
“I think it was kind of expected because the January to March number was negative, and we know big companies have to spend a lot of money on capex because of AI, digitalization,” said she declared.
China’s industrial production, retail sales data lacks estimates
Chinese factory and consumer data for July came in below estimates, according to official data.
Industrial production rose 3.8%, below the 4.6% expected in a Reuters poll and slightly below the 3.9% figure reported in June.
Retail sales rose 2.7% in July from the same period in 2021, below forecast growth of 5%.
— Abigail Ng, Evelyn Cheng
China’s central bank unexpectedly cuts interest rates
The People’s Bank of China cut its one-year medium-term lending facility on 400 billion yuan ($59.3 billion) of loans to certain financial institutions by 10 basis points to 2.75%, according to a announcement posted on the central bank’s website.
According to Reuters, all 32 respondents to a poll last week expected the rate on the medium-term lending facility to remain stable.
The PBOC also cut its seven-day repo rate by 10 basis points to 2%.
Japan’s GDP grows, but misses estimates
Preliminary estimates showed Japan’s annualized gross domestic product rose 2.2% in the April-June quarter from the previous quarter.
That’s less than the expected 2.5% increase based on a Reuters poll forecast.