Hong Kong stocks fell 3%, leading to losses in Asia as China missed its fourth-quarter GDP estimates

Hong Kong’s Hang Seng was the worst-performing index for the second straight day in Asia, falling 2.76% as non-cyclical real estate and consumer stocks fell.

Chinese technology giant Alibaba’s health information technology subsidiary, Alibaba, which fell 7.43%, was the biggest loser on the HSI.

It was followed by residential property management Longfor Group and technology heavyweight Meituan, which fell by 5.68% and 5.48%, respectively.

Business sentiment at major Japanese manufacturers fell in January for the first time in four months, according to the monthly Reuters Tankan Survey.

The manufacturer confidence index was +6, down from +12 six points in December, while the services sector index rose to +29 in January from +26 the previous month.

The monthly Reuters poll tracks the Bank of Japan’s main quarterly Tankan survey, and is calculated by subtracting the proportion of pessimistic respondents from optimistic respondents. A positive number means that the number of optimists exceeds the number of pessimists, and vice versa.

Reuters said that the survey highlights concerns about weak external demand, especially from China.

– Lim Hui Ji

Singapore’s non-oil domestic exports in December unexpectedly fell year-on-year, official data showed.

Singapore’s NODEX index fell 1.5% last month, while a Reuters poll expected it to rise 3.3%. Nodex in November rose 1%.

The decline was a result of lower electronics shipments. Shipments of non-electronic products rose.

Exports to Singapore’s major markets – Taiwan, South Korea and Japan – fell broadly in the last month of 2023.

However, NODX sales to China, Hong Kong, the European Union and the United States increased.

– Shreyashi Sanyal

The European technology hardware sector’s “volatile year” ended 2023 on a strong note, and a cyclical recovery is underway, according to Morgan Stanley.

The Wall Street bank expects investors to focus on the cyclical recovery and key themes such as artificial intelligence, advanced packaging, silicon carbide and universal transistors.

These themes could “spur earnings momentum throughout this year, especially in 2H24,” Morgan Stanley analysts wrote, naming six stocks as overweight.

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– Amala Balakrishner

2023 hasn’t been a good year for the healthcare sector, but some investors expect it to make a comeback this year — with biotech and medtech highlighted as areas to watch.

Citi said the healthcare industry “appears ready to return to leadership”, given demographic shifts and the benefits of artificial intelligence, adding that it expects “a recovery in healthcare profits in 2024 to be one of the key drivers of potential outperformance in the sector.” “.

CNBC Pro takes a look at stock picks and other sector investment advice provided by the bank — and strategists elsewhere.

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-Weezin Tan

The 10-year Treasury yield added nearly 9 basis points on Tuesday after Federal Reserve Governor Christopher Waller suggested the central bank might take its time lowering interest rates.

“As long as inflation does not rebound and remains high, I think that will continue [Federal Open Market Committee] “We will be able to lower the target range for the federal funds rate this year,” Waller said in a speech at the Brookings Institution.

He added: “When the time comes to start lowering interest rates, I believe they can and should be lowered systematically and carefully.” “In many previous cycles…interest rates have been cut reactively, and they have done so quickly and often by large amounts. However, in this cycle…I see no reason to move as quickly or cut as quickly as in the past.” “.

— Hakyung Kim

Oil prices fell on Tuesday as the US dollar rose after a Federal Reserve official indicated that the central bank may not cut interest rates as aggressively as the market expects.

February West Texas Intermediate crude futures fell 56 cents, or 0.77%, to trade at $72.12 a barrel. Brent crude futures for March fell 13 cents, or 0.17%, to trade at $78.02 per barrel.

The US dollar index rose about 1% after Federal Reserve Governor Christopher Waller said interest rates “must be lowered systematically and carefully” when the time is right.

Waller acknowledged that cuts are possible this year as long as inflation does not rebound and remains high.

Oil prices rose earlier in the trading session on Tuesday, as investors monitored rising tensions in the Middle East, especially in the Red Sea.

Oil major Shell has halted transit through the Red Sea amid fears of attacks by the Houthis on commercial ships in the waterway, the Wall Street Journal reported.

-Spencer Kimball

‘7 hot stocks’ Microsoft and Nvidia were among 16 names on the S&P 500 that hit new highs on Tuesday. Microsoft shares were trading at levels not seen since March 1986, while Nvidia shares were at levels not seen since January 1999.

Here are some other names that reached all-time highs:

• Palo Alto Networks It traded at all-time highs until its IPO in July 2012
• Eli Lilly Trading at all-time highs dates back to 1952 when the company offered its first public stock
• CBOE Holdings traded at all-time highs until its June 2010 IPO
• TJX Companies traded at all-time highs until its IPO in 1987
• Allstate Trading at all-time highs dating back to the IPO in 1993, originally Sears’ insurance subsidiary, Roebuck

-Lisa Kailai Hahn, Christopher Hayes

The energy sector saw the largest decline within the S&P 500 on Tuesday, falling 2.1%, as oil prices fell due to a stronger US dollar. EQT, APA and EOG Resources shares fell about 3.4%.

Financial stocks also fell amid a series of major bank earnings reports. Morgan Stanley, which published its quarterly results in the morning, fell by 5.2%. PayPal and T Rowe Price Group shares fell 4.6% and 3.9%, respectively.

— Hakyung Kim