Asia Pacific markets trade lower; China keeps LPR stable

Asia Pacific markets trade lower;  China keeps LPR stable
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Japanese trading houses rise as Berkshire Hathaway reportedly increases stake

Shares in some Japanese trading houses rose early in the Asian session, despite falls in the region’s markets after billionaire Warren Buffett’s Berkshire Hathaway increased its stake in the companies, individual regulatory filings show.

Berkshire increased its stake by more than 1 percentage point Mitsubishi, Mitsui & Co, Itocha, Marubeni and Sumitomo to hold over 6% in each of the companies, the filing shows.

Japan-listed Mitsubishi was up 1.89% in the morning session, Marubeni was up 2.12% and Sumitomo was up more than 1%. Itochu was also up 0.84% ​​and Mitsui was up 0.16%.

This comes days after Berkshire Hathaway disclosed it boosted its holdings in American depositary receipts from Taiwan Semiconductor Manufacturing Company, leading the company’s Taiwan-listed shares to surge more than 10% in the Asia session.

– Jihye Lee

As expected, China is keeping interest rates unchanged

According to an announcement by the People’s Bank of China, China has kept interest rates unchanged for the third straight month.

The interest rate for one-year loans is constant at 3.65%, and the interest rate for five years is also 4.3%, the release said.

– Abigail Ng

South Korea saw exports fall further in the first 20 days of November

South Korea’s exports fell 16.7% on an annualized basis in the first 20 days of November, with demand from China lagging behind given from the customs authority.

The slump in exports is a sharp drop from October’s 5.5% drop compared to the same period a year ago.

Imports also fell 5.5% in the first 20 days of November, leading to a slight improvement in the trade deficit — $4.4 billion for the period, compared to a deficit of $4.9 billion , which was reported in October.

The country has run a trade deficit totaling $40 billion since the start of the year, agency statistics showed.

– Jihye Lee

CNBC Pro: Morgan Stanley’s Mike Wilson predicts S&P 500 bottom, calling it an ‘excellent buying opportunity’

Mike Wilson, Morgan Stanley’s Chief US Equity Strategist, says we are in the “final stages” of the bear market, but the situation will remain challenging for a while.

It predicts when — and at what level — the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

— Wheat Tan

According to a Reuters poll, China is expected to keep interest rates stable

China’s central bank is expected to keep interest rates on one- and five-year loans unchanged, according to analysts polled by Reuters.

The one-year rate is currently 3.65% and the five-year LPR is 4.3%.

Most recently, the People’s Bank of China cut both interest rates in August.

of China offshore yuan was weaker at 7.1376 against the US dollar before early Monday’s decision.

– Abigail Ng

CNBC Pro: Strategist says Chinese tech stocks like Alibaba are ‘grossly undervalued’

This year’s 30% drop in the value of Chinese big tech stocks such as Alibabamade them “incredibly cheap,” according to investment bank China Renaissance.

Equities chief Andrew Maynard believes not only does the stock market appear to have bottomed out, but investors could miss out on a rally by remaining underweight China.

“Without a shadow of a doubt, being underweight China will cost you going forward,” Maynard said.

CNBC Pro subscribers can read more here.

— Ganesha Rao

Markets are watching for more hints of Fed hikes and the economy in the coming week

Investors may be a little more cautious in the coming week as stocks seek direction in quiet trading and bond market warnings of a recession grow louder.

The Thanksgiving holiday on Thursday should mean markets are likely to be quiet on Wednesday and Friday. Merchants will monitor reports of Black Friday holiday shopping for consumer feedback.

“It’s truly a week where data dependency is the keyword,” said Julian Emanuel, Senior Managing Director at Evercore ISI. “The bias [for stocks] is higher unless the data continues to deteriorate and the Fed maintains its hawkish stance…which has clearly intensified over the past 48 hours.

Check out our full deep dive of what to expect in the coming week here.

— Patti Domm, Tanaya Macheel

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