Asia-Pacific markets trade mixed as investors digest Fed’s smaller quarter-point hike

of dollar index It fell more than 0.3% to 100.92, its lowest level since April 2022, when it last fell below 101, according to Refinitiv data.

The dollar index hit an overnight low of 101.036, its lowest level since April 22, 2022, when it traded to 100.473.

The index is down 0.74% week-to-date, marking the first four consecutive negative weeks since the four consecutive weeks of decline that ended 14 January 2022.

– Chris Hayes, Gina Francola, Jihye Lee

Australia’s total approved building approvals increased by 18.5%, according to Australian Bureau of StatisticsThat’s well above the 1% increase expected by economists in a Reuters poll.

Private sector housing approvals fell 2.3%, while non-housing private sector building approvals rose 56.6%, ABS said in a release.

Non-residential building values ​​fell by 1.7%, while total building values ​​rose by 3%.

– Lee Ji Hye

UBP said Thursday on CNBC’s Squawk Box Asia that the Hong Kong economy “could return to expansion” this year.

“We’ve seen a wave of upside signs in January, which is good news,” said Carlos Casanova, senior economist for Asia at UBP.

This is despite new figures from the Hong Kong government. The economy contracted 4.2% in the fourth quarter, 2022 will fall for the fourth consecutive quarter. Real GDP also contracted by 3.5% year-on-year.

“We are confident that we are well positioned to return to expansion in 2023 and not just because. mainland tourists [are] Come back after reopening, But stock valuations are more supportive, which certainly helps sentiment in Hong Kong,” Casanova added.

—Go Chiu Tong

South Korea’s consumer price index rose 5.2% on an annualized basis in January, according to statistics South Korea data.

The latest print shows a rise from previous readings after falling from 5.7% in October 2022 to 5.0% in November and no change in December.

Daily necessities rose 6.1% year-on-year, and fresh food rose 2.4%.

– Lee Ji Hye

Investors are keeping a close watch on Adani Group companies’ subsequent shares. Enterprise withdraws Despite the sale being fully booked, an additional public offering of $2.5 billion overnight was seen as a vote of confidence by many investors.

The company cited “unprecedented circumstances and current market volatility” as the reason for the decision, adding that it was working to return profits to investors.

“Given the extraordinary circumstances, the board felt it was morally wrong to proceed with this matter,” founder Gautam Adani said in a statement.

“The interests of the investors are paramount, and in order to protect them from potential financial losses, the board has decided not to proceed with the FPO,” he said.

The move comes after Adani shares continued to sell off during Wednesday’s trading session in Mumbai. Deterioration of investor sentiment Since Hindenburg Research announced a short position in Adani Group.

Stocks of Adani Enterprises The stock plunged 28% at the market’s close on Wednesday. Anya Port and Special Economic Zone 19% reduction, Adani Green Energy fell 5.6%, Adani Total Gas lost 10% between Adani transmission It closed 2.8% lower.

– Lee Ji Hye

JP Morgan has named five of its holdings as the broader Chinese stock market is expected to rise in February.

Wall Street Bank strategists believe last week’s sell-off in Hong Kong-listed stocks was profit-taking by some investors.

They said the stock market as a whole would “rise” this month, but would turn to “a lagging consumption and value cycle and the quality of the growth space.”

CNBC Pro subscribers can read more about five stocks named by JP Morgan.

— Ganesh Rao

Alibaba’s stock has made a strong recovery this year, but the recent slump in the stock has worried some investors.

But the Wall Street favorite isn’t the only game in town, and some stocks also offer exposure to China’s internet sector.

Pro subscribers can read more here.

— Xavier Ong

The Federal Reserve has raised its benchmark overnight lending rate by 25 basis points (0.25 percentage points), in line with investor expectations. The rate hike brings the Fed’s target range to 4.5% to 4.75%, the highest since 2007.

However, the Fed said in its statement that the FOMC still “Continuous increase in target rangeMarket participants wanted the phrase to be somewhat relaxed, but the statement, which was unanimously approved, remained intact.

— Jeff Cox

Jerome Powell said he doesn’t think the Fed will cut rates this year, as some leading strategists have predicted.

“Given our outlook, if our outlook comes true, we won’t see a rate cut this year,” the Fed chairman said.

Powell also said he was “worried” that the bond market was hinting at another rate cut before the pause, as some market participants expect inflation to fall faster than the Fed. No,” he said.

“If inflation were to decline more rapidly, that would of course have implications for policy setting,” Powell said.

— Jesse Pound

Powell acknowledged that there are positive signs in the recent jobs report, even as labor statistics continue to perform strongly, but said it’s too early to celebrate.

“It’s good that the disinflation we’ve seen so far hasn’t taken its toll on the labor market,” Powell said, but added the economy was still in the “early stages” of easing inflation.

He said the data showing falling prices and the recent softening of the rental housing market was “good news.”

But the Federal Reserve said it “has yet to see inflation” on the core services portion of inflation, with the exception of housing.

—Jessie Pound

Money I hit the best session I haven’t seen since April.

In Wednesday’s trading, the metal traded as high as $1,956.60. This is the highest since April 22, 2022 when the gold price reached his $1,957.80.

— Alex Haring, Gina Francola