Japanese yen weakens further, inching closer to 145
The Japanese yen weakened further to 144.35, the weakest since mid-1998 – as the US dollar index strengthened, hitting a fresh 24-year peak against the Japanese currency.
The offshore Chinese yuan also weakened to 6.99, inching closer to the 7 mark, following weaker-than-expected trade data.
South Korea’s won also weakened, surpassing the 1,380-level for the first time in more than 13 years.
Nomura cuts its China GDP forecast — again
Nomura has cut its forecast for China’s full-year GDP to 2.7%, another downgrade from its previous 2.8% estimate set in August.
The new outlook is based on Nomura’s analysis that found 12% of China’s GDP is affected by Covid controls on a weighted basis, up from 5.3% last week.
Several cities including the tech hub of Shenzhen have tightened Covid controls in the last few weeks after reporting new local infections. Chengdu has also ordered people to stay home while authorities conduct mass virus testing.
Read the full story here.
China’s exports for August misses forecasts; Posts trade surplus over weak imports
China’s exports rose 7.1% in August compared with the same period a year ago, official data showed, missing estimates of 12.8% after rising 18% in July.
Imports ticked up 0.3%, less than the 1.1% gain forecast in a Reuters poll and 2.3% increase in July.
The country saw a trade surplus of $79.39 billion in August driven by weaker import numbers, after it saw a record $101.26 billion in trade surplus in July.
Oil prices fall on expectations of further rate hikes and lower demand growth
Oil prices fell on Wednesday following more Covid curbs in China and expectations of more interest rate hikes globally.
The US West Texas Intermediate futures fell 1.45% to stand at $85.62 per barrel, while Brent crude futures slid 1.14% to $91.77 per barrel, erasing earlier gains following the latest OPEC+ meeting and its decision to pare output.
A Reuters forecast expects WTI to extend its downtrend to reach $83.17 per barrel.
—Lee Ying Shan
CNBC Pro: Russia-Europe tensions could spur a ‘bullish shock’ to oil markets
Oil and gas stocks are set to get a boost from heightened tensions surrounding Russian gas supplies to Europe, according to one analyst.
Kenny Polcari, chief market strategist at SlateStone Wealth, told CNBC’s “Street Signs Asia” that investors should zoom in on big US energy names which are also good dividend payers.
One stock he named is up 125% this year, and he says there’s more “room to run.”
Pro subscribers can read more here.
— Wheat Tan
Australia’s economy grows 0.9% in the second quarter
Australia’s real GDP grew 0.9% in the second quarter after rising 0.7% in the previous period, official data showed.
The Australian Bureau of Statistics said the continued growth was backed by the first full quarter of reopened borders.
The data also showed the Australian economy grew 3.6% over the past year. The ABS said strong domestic demand as well as an increase in travel supported overall growth.
— Jihye Lee
CNBC Pro: This chip stock has convincingly beaten its peers this year – and analysts think it can go higher
After years of market beating returns, semiconductor stocks have sold off heavily this year. But one stock has emerged relatively unscathed from the market carnage. Not only has it outperformed its peers, it has beaten the S&P 500 by a country mile.
And analysts think the stock can still go higher.
Pro subscribers can read more here.
— Zavier Ong
US Treasury yields hit highest levels since mid-June
A bond selloff has boosted US Treasury yields to their highest levels since mid-June as investors weigh what strong economic data means for the Federal Reserve’s future rate hikes.
The US 10-year Treasury yield rose as much as 3.353%, the highest level since June 16, when the yield hit 3.495%. Yields are the inverse of prices.
The yield on the US 30-year Treasury hit a high of 3.484% and the US 5-year Treasury yield hit 3.334%, also both the top levels seen since mid-June.
The 2-year yield also rose to a daily high of 3.535%, but it is only the highest yield for the note since Friday.
– Carmen Reinicke