Rate of rise of the RBNZ; Chinese food giant Meituan rebounds

ETFs are a good way to capitalize on the bull cycle in the Japanese market

The best way for retail investors to gain exposure to the Japanese market and its “up cycle” is through exchange-traded funds (ETFs), while the machinery and capital goods sectors offer good value,” said Monex Group Director Jesper Koll.

The Japanese economy is currently in better shape than many other Group of Seven economies.

“It gives you exposure to the market in general, there’s plenty of liquidity, it’s easy to trade in your account,” Koll told ‘Street Signs Asia’.

“For a retail investor, I think a large exposure to the Topix or even the Nikkei 225 index is perfectly acceptable.”

To do this, retail investors should consider opening a brokerage account with Japanese brokers such as Nomura or Monex Group, he said.

The most profitable stocks are in Japan’s capital goods and machinery sectors, Koll added, citing companies like Keyence as stocks to watch.

“Keyence is the world leader in factory automation. As you know, there is a lot of talk about the need to restructure global supply chains. As new factories and logistics are being built , Keyence is going to be a key beneficiary of the restructuring of supply chains,” said Koll.

Daikin would also be a good stock to invest in, given that it would benefit from clean energy plans globally.

— Su-Lin Tan

Portfolio manager sees opportunity in Chinese tech companies that are eroding US and European market share in China

Although there has been a deceleration in the Chinese economy, PineBridge Investments global head of equities and portfolio manager Anik Sen says there are domestic tech companies worth investing in.

“I think Chinese technology is also continuing to move up the value chain, there are very strong companies in the semiconductor space, which are what we call location games or location games, you know, companies that are essentially replacing foreign companies that have so far dominated the supply chain, whether in the industrial space or even in the healthcare space,” Sen told “Street Signs Asia” from CNBC.

“So I think technology is ubiquitous [in China]. And there are some really strong companies moving up that food chain very quickly, if you will, and replacing, especially some American and European countries, and until now had a dominant market share in China. »

— Su-Lin Tan

Tencent earnings expected Wednesday night

Professor says US-China tensions need to ease so Biden can fight inflation

In order to tame ongoing inflationary pressures, the United States “must reduce hostility” with China, Jeffrey Sachs, an economics professor at Columbia University, told CNBC’s “Street Signs Asia.”

He said the Biden administration shouldn’t have kept Trump-era tariffs on China, adding that escalating hostilities with Beijing “don’t help on the inflation side.”

The professor called the Cut Inflation Act that Biden signed “a typical title for a piece of legislation that has nothing to do with inflation for the next few years.” Sachs said inflation is likely to remain high for the next two years.

—Jihye Lee

Goldman Sachs says RBNZ could slow pace of rate hikes

Ahead of the Reserve Bank of New Zealand’s latest decision, Goldman Sachs chief economist for Australia and New Zealand, Andrew Boak, told CNBC’s “Squawk Box Asia” that the RBNZ may soon leave more of “room to manoeuvre” or respite for future movements.

“I think they will slow the pace of tightening in the last two meetings after today’s 50 basis point hike,” Boak said.

Further tightening is also on the way for New Zealand’s neighbor Australia, which has the tightest labor market since 1974.

“The bigger picture for Australia – domestic conditions warrant further tightening. We have a fully employed market and a massive overshoot in inflation over the Reserve Bank of Australia’s own forecast, inflation is coming back all just at the top of 2% to 3%, not next year, but the second half of 2024,” Boak said.

— Su-Lin Tan

Wage growth in Australia hits 2.6%

Annual wage growth in Australia increased for a third consecutive quarter, from 2.4% to 2.6%, according to the latest data from the Australian Bureau of Statistics.

The figure was the highest since 2014 and surpassed pre-pandemic growth rates, Capital Economics said.

“Additionally, the proportion of workers receiving a pay rise was unusually high for a June quarter as the number of employees changing jobs continued to accelerate,” said Marcel Thieliant, senior economist at Capital. Economics for Australia and New Zealand.

Thieliant expects wage growth to climb to 3.5% by 2023, but says Australia’s central bank is concerned that “the recent surge in inflation will detach inflation expectations and incentivize workers to demand even higher wage increases”.

Although wage growth has accelerated, it is still below the current inflation rate of 6.1%, making the real wage situation worse for Australians.

— Su-Lin Tan

Australian economy remains robust for July

Australia’s Westpac-Melbourne Institute Leading Index, which measures the direction of the economy, rose to 0.63% in July from 0.48% in June.

The six-month annualized growth rate has remained broadly stable over the past three months, supported by a buoyant labor market and strong household balance sheets.

Westpac said it expects spending growth to slow now “under the weight of rising interest rates and high inflation which are already undermining confidence.”

Westpac chief economist Bill Evans said it was important the Reserve Bank of Australia “continue to increase the exchange rate at every meeting for the remainder of 2022” through February 2023.

The central bank’s next monetary policy decision is scheduled for September 6.

—Jihye Lee

Singapore’s main exports slowed in July

Singapore’s main exports grew at a slower pace in July due to lower shipments of non-electronic goods.

Non-oil domestic exports rose 7% in July year-on-year, compared to 8.5% in June. It did, however, beat the Bloomberg consensus expectation of 6.4%.

Exports to markets like Malaysia and Taiwan increased, but exports to China and Japan fell. Overall, non-oil exports and imports increased in July.

— Su-Lin Tan

CNBC Pro: Have the markets bottomed? Strategist reveals the indicators to watch

A strong rebound in US equities raised hopes that the market had bottomed out. But is the bear market really behind us now?

Strategist Victoria Fernandez chimed in and revealed the key metrics she monitors.

Pro subscribers can read the story here.

— Zavier Ong

Japanese exports increased in July

Japan recorded better than expected export growth in July compared to a year ago. The 19% growth beat Refinitiv’s consensus estimate of 18.2%, driven by a strong recovery in car exports.

Imports rose 47.2% in July from a year earlier, driven by higher prices for imported crude oil and liquefied natural gas.

“Japan’s trade deficit widened to a record high in July, but is expected to start narrowing over the coming months as supply shortages and commodity prices continue to decline,” he said. Capital Economics Japan economist Darren Tay said in a note.

“Motor vehicle production should continue to normalize as supply chain disruptions ease, while commodity price growth has slowed further.”

— Su-Lin Tan

New Zealand Q2 PPI inflow and outflow figures higher than expected

New Zealand released the second quarter producer price index the entry and exit figures were 3.1% and 2.4%, respectively. The data indicates that wholesale price inflation for the second quarter rose more than analysts’ expectations, but at a slower pace than in the first quarter.

— Su-Lin Tan

CNBC Pro: Is “super cheap” meta a buy? Here’s what tech investor Paul Meeks says

Meta, like most tech stocks, has fallen sharply this year, and now investors might be wondering if it’s time to buy the dip.

Paul Meeks, portfolio manager at Independent Solutions Wealth Management, explains whether he thinks investors should buy or skip this stock, and why.

Pro subscribers can read the story here.

—Weizhen Tan

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