Australia raises 25 bps as expected, Hong Kong stocks lead gains in Asia-Pacific markets

Australia’s central bank hikes rates by 25 basis points as expected

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

This is the seventh consecutive tightening move by the RBA in a bid to control inflation in the country.

the Australian dollar rallied to around $0.6440 ahead of the decision, and last traded at $0.6429 following the announcement.

At the previous meeting in October, the central bank raised rates by 25 basis points, fewer than the expected half-point hike.

— Abigail Ng

Hong Kong movers: Hang Seng Tech stocks lead gains in wider index

Hong Kong-listed technology stocks led gains in the wider Hang Seng index, with Meituan gaining more than 10% in the morning session.

Tencent gained 8.56%, Alibaba pink 7.2% and Xiaomi gained 4.3%. also rose 6.06%.

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

—Jihye Lee

Hang Seng loses more than 14% in the month of October

Asia-Pacific market performance in October

Market Month-to-date performance Year-to-date performance
Australia’s S&P ASX 200 6.01% -7.81%
Japan’s Nikkei 225 4.5% -5.86%
South Korea’s Kospic 6.23% -23.1%
China’s Shanghai Composite -4.33% -20.5%
Hong Kong’s Hang Seng -14.55% -37.1%

Mainland China and Hong Kong markets underperformed Asia-Pacific peers in the month of October.

the Hang Seng index wallowed at its lowest levels since April 2009 after losing 14.55% as of Monday’s close.

Meanwhile, stocks in Australia, Japan and South Korea posted single-digit gains to close the first month of the year’s final quarter, while the Shanghai Composite slipped 4.33%.

Japan stocks closed at their highest since Sept. 20, but major APAC indexes were all still underwater from the start of the year.

— Abigail Ng

CNBC Pro: What investors should buy in this ‘short lived’ rally, according to one analyst

Analyst explains why he's still negative on tech right now

After October’s stock market rally, investors are debating whether stocks have hit the bottom or if it’s another short-lived bounce.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is in the latter camp, arguing the rally, once again, looks temporary.

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

CNBC Pro subscribers can read more here.

— Weizhen Tan

China’s factory activity shrank for a third consecutive month in October, private survey says

The Caixin manufacturing Purchasing Managers’ Index for October showed that factory activity contracted for the third month in a row.

The reading came in at 49.2, compared with expectations for a print 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 print of 50.

— Abigail Ng

Hong Kong’s economy shrank by 4.5% in the third quarter

Hong Kong’s gross domestic product fell by 4.5% in the third quarter of the year compared with the same period a year ago, advance estimates from the Census and Statistics Department showed Monday.

That’s the worst contraction since the second quarter of 2020. Analysts polled by Reuters expected 0.7% growth, while GDP decreased 1.3% in the second quarter.

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

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

— Abigail Ng

CNBC Pro: This Chinese electric carmaker’s stock could rally by more than 260%, Citi says

Citi has picked a large electric car maker as one of its “top” buy ideas among Chinese stocks.

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

CNBC Pro subscribers can read more here.

— Ganesh Rao

South Korea’s trade deficit widens for the month of October

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, data from the customs agency showed.

Imports rose 9.9% to $59.18 billion from the same period a year ago, while exports dropped 5.7% to $52.48 billion.

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

—Jihye Lee

CNBC Pro: Forget Tesla? Citi and HSBC name 2 alternatives to play the EV boom

Tesla may be an investor favorite for exposure to the EV industry, but Citi and HSBC name two alternatives to play the growing demand for electric vehicles.

Pro subscribers can read more here.

— Zavier Ong

Japan spent $42.7 billion to prop up the yen, ministry says

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