Chinese online gaming stocks higher as crackdown on the sector appears to ease
New Zealand central bank hints at more hikes ahead
Reserve Bank of New Zealand (RBNZ) governor Adrian Orr said that the bank’s sole target is to get the official cash rate to a point where inflation can be worn down.
Orr’s comments come after the central bank delivered its biggest rate hike of 75 basis points.
“Our core inflation rate is too high,” Orr said in a press conference, adding that the central bank is “well down on the path of the tightening cycle.”
In a separate press release shortly after the decision, the RBNZ said, “Committee members agreed that monetary conditions needed to continue to tighten further
— Lee Ying Shan
BYD shares drop after Berkshire Hathaway trims stake
Shares of BYD listed in Hong Kong traded 2.64% lower after Warren Buffett’s Berkshire Hathaway announced it cut its stake in the Chinese electric vehicle maker.
According to an HKEX filing, the company sold 3.2 million shares worth about 630 million Hong Kong dollars ($80.6 million), trimming its holdings of the company to 15.99% from 16.28%, the filing showed.
Separately, the company also announced it will raise prices for some of its EV models, according to Reuters.
– Jihye Lee
Shares of Kuaishou, Baidu rise after reporting earnings
Xiaomi expected to post revenue decline for third quarter
Xiaomi is expected to see a decline in revenue for the third quarter of 2022, according to a mean of estimates from a Refinitiv poll.
The company is expected to see a 9.66% decline in revenue to 70.52 billion yuan ($9.87 billion) for the July to September quarter, compared with 78.06 billion yuan in the same period last year.
The expected dip is likely due to “tepid smartphone sales,” as well as the weak macro environment and consumer sentiment, Daiwa Capital Markets wrote in a note.
Xiaomi’s shares fell as much as 1.72% in morning trade ahead of the release, and was last around 1% lower.
–Lee Ying Shan
New Zealand dollar strengthens after biggest rate hike
New Zealand dollar strengthened to 0.6192 against the dollar after the central bank raised rates by 75 basis points, its biggest hike on record.
The NZD last traded at 0.6170 against the dollar and the NZX 50 index in New Zealand fell 0.8%.
The New Zealand 10-year Treasury yield briefly touched 4.305% shortly after the decision, and last traded at 4.235%. Yields move inversely to prices, and a basis point is equal to 0.01%.
– Lee Ying Shan
CNBC Pro: Goldman says EV batteries are becoming ‘critical’ and names 2 stock picks
Electric vehicle batteries are gaining “critical importance” amid the energy transition, according to Goldman Sachs.
The investment bank names two top stocks to play the EV battery sector, giving one upside of nearly 70%.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Singapore releases narrowed GDP estimates for 2022
Singapore’s economy is projected to grow around 3.5% in 2022, according to forecasts from the Ministry of Trade and Industry, citing a softening external demand outlook following Europe’s energy crunch and China’s continued Covid-related restrictions.
The figure is a narrowed estimate from its previous projected range of between 3% and 4% — and reflects the third quarter’s 4.1% annualized growth and 1.1% growth from the previous quarter.
The ministry also said it sees the nation’s 2023 GDP growth to be between 0.5% to 2.5%.
— Jihye Lee
CNBC Pro: UBS says self-driving cars could become a $100 billion market in China — and names stocks to play it
Electric vehicles are fast gaining traction, particularly in China, the largest EV market in the world.
But UBS believes autonomous driving will be an even bigger megatrend than electrification — with a market size in China alone of around $100 billion by 2030.
Here’s how investors can play this megatrend, according to UBS.
Pro subscribers can read more here.
— Zavier Ong
New Zealand’s central bank hikes rates by 75 basis points
The Reserve Bank of New…