Asia-Pacific markets trade higher as investors await China trade data; U.S. midterm elections ahead

China to reopen ‘months away’ despite talk of preparations: Goldman Sachs

Speculation about China’s reopening fueled a rally in markets last week, but economists at Goldman Sachs say that is still “months away.”

“The actual resumption is still months away, as vaccination rates among the elderly remain low and the death rate among the unvaccinated is high, based on Hong Kong’s official data,” said a note by economists led by Hui Shan.

They added that the government may be working on an exit strategy and that the company expects the country to reopen in the second quarter of 2023.

– Jihye Lee

CNBC Pro: Morgan Stanley Says This Global Battery Materials Stock Could Rise More Than 80%

Morgan Stanley expects shares of the Asian battery materials maker to rise 85% by the end of next year.

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This under-the-radar supplier of battery materials Teslawhich already has triple-digit revenue growth, plans to expand production in the US.

Even JP Morgan analysts, who take a “conservative valuation approach,” expect the stock to rise 25% for the year.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Apple says iPhone production has been temporarily reduced due to Covid-19 restrictions in China

Apple said production of the iPhone 14 has been temporarily reduced due to Covid-19 restrictions at its assembly plant in Zhengzhou, China, according to a statement on Sunday.

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The warning could mean the tech company could struggle to meet demand in December as it deals with “significantly reduced capacity” at the plant. The company has previously hinted at slowing growth in its iPhone business in its earnings report last month.

Apple’s warning comes as China last week imposed a lockdown on Zhengzhou, where Apple manufactures most of its iPhones. According to Reuters, workers have fled the facility due to Covid restrictions and outbreaks.

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— Sarah Mina, Kif Leswing

CNBC Pro: There’s still opportunity in tech — here’s how to trade it: Analysts

Tech companies face a double whammy of bad news as disappointing earnings and the Federal Reserve’s continued rate hikes weigh on the sector.

But with heavy technology Nasdaq down more than 30% year-to-date, analysts say there are some bright spots that could present opportunities for investors.

Here are some of their top picks, including one stock with an average gain of more than 50%.

CNBC Pro subscribers can read more here.

— Weizen Tan


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