Asia markets decline across the board; The Bank of Korea holds interest rates

South Korea’s central bank once again kept its benchmark interest rate at 3.5%, in line with expectations from a Reuters poll of economists.

In its statement, the Bank of Korea said that the country’s inflation “is expected to continue its underlying trend of deceleration,” but there are doubts about the future path of inflation.

South Korea’s inflation rate rose to 3.7% in September from 3.4% in August, but the Bank of Korea noted that core inflation remained at 3.3% in September, the same level as in August.

While inflation is expected to continue to slow to a minimum of 3% by the end of 2023, and continue to slow in 2024, the BOK noted that “upside risks to inflation have increased due to the effects of higher global oil prices and currency exchange rates.” Interest rates, and because of the conflict between Israel and Hamas.”

– Lim Hui Ji

ESG is “as crowded as ever,” according to AllianceBernstein, which unveiled “high-conviction” stock ideas to power it.

In a note dated October 17, analysts at the global asset management firm noted that congestion is “a risk factor that is often mispriced because it is not easily observed.” They added that crowded stocks are those that are made based on agreed upon trades and are expected to deliver high returns and stability in the near term.

The extent of congestion varies by region, analysts wrote, naming stocks on their radar for now.

CNBC Pro subscribers can read more here.

– Amala Balakrishner

Japan recorded a trade surplus of 62.4 billion yen ($416.6 million) in September, exceeding expectations of economists polled by Reuters for a trade deficit of 42.5 billion yen.

Data from the Japanese Customs Agency revealed that exports in September increased by 4.3% year-on-year, while imports decreased by 16.3% compared to the same period last year.

According to FactSet, exports to Asia fell for the ninth straight month, reflecting continued weakness in China. FactSet added that exports were supported by shipments to Western markets.

– Lim Hui Ji

An interest rate cut by the Federal Reserve next year is likely to be bad news for US equity investors, according to Hugh Gimber, global market strategist at JPMorgan Asset Management.

The strategist believes that market expectations of interest rate cuts next year conflict with analysts’ earnings growth expectations.

Instead, Gember believes Fed cuts in 2024 will likely coincide with lower corporate earnings, creating headwinds for stocks.

CNBC Pro subscribers can read more about Gimber’s view and where to invest in that environment here.

-Ganesh Rao

Piper Sandler named its large-cap stock “highest conviction” to own through the end of the year, giving the stock a potential upside of about 20% from Monday’s close.

“[There’s] Its analysts said there are multiple upside levers for revenue and EPS growth over the next three to five years.

CNBC Pro subscribers can read more here.

-Weezin Tan

The U.S. economy has shown “little or no change” over the past six weeks, the Federal Reserve said Wednesday in its “Beige Book” report.

The report said spending was described as “mixed” while prices rose at a “modest pace.” Companies said they expect inflation to continue to rise, but at a slower pace.

In terms of hiring, most regions saw “slight to moderate increases” as companies hired “less urgently.” More broadly, participants expected future economic growth to be “stable or slightly weaker.”

—Jeff Cox

Stocks are in an “uncertain position” as geopolitical tensions in the Middle East continue, but the market should remain in good shape as long as the conflict is contained, according to Citi’s Scott Kronert.

“The way I think about it is containment versus escalation,” the U.S. equity strategist told CNBC’s “Squawk on the Street” on Wednesday. “As long as it remains contained, I think our view on U.S. stocks is in very good shape.”

He added that stock market fundamentals also look good, which is confirmed by the third-quarter earnings announced so far.

-Samantha Sobin

US Treasury yields rose on Wednesday, with 10-year notes hitting a new multi-year high. The rise put pressure on stocks

The yield on the 10-year Treasury note rose about 7 basis points to 4.911%, putting it above 4.9% for the first time since 2007. Meanwhile, the yield on the two-year Treasury note rose about 2 basis points to 5.231%, and is hovering around the levels. It was last seen in 2006.

It is also worth noting that the 5-year Treasury bond reached a high of 4.937%, its highest level since 2007.

Yields and prices move in opposite directions and one basis point equals 0.01%.

-Alex Haring, Sophie Kiderlin

Gold prices rose more than 1% on Wednesday to trade near their highest level since September 20.

US gold futures rose 1.1 percent in the latest trading to $1,957.5, while silver gained 1.4 percent to trade near its highest levels since September 29.

The move in gold prices came at a time when recent events in the Middle East increased fears of escalation of the conflict between Israel and Hamas.

-Samantha Sobin