HKMA says Hong Kong sees little impact from banking turmoil in U.S., Europe
Hong Kong Monetary Authority Chief Executive Eddie Yue said Hong Kong sees “little impact” from the fallout of the global banking sector turmoil.
“I would say that the recent events in the U.S. and Europe has very little impact on Hong Kong,” Yue said in a briefing, adding that Hong Kong’s banks have “only very limited exposures to all the banks that are now featured in the newspapers” without naming them.
Noting that the situation has “largely stabilized,” Yue emphasized that he will be monitoring for potential changes ahead.
“The liquidity has been extended, but whether there will be further changes, we will need to monitor,” Yue said. “We, of course, the banks in Hong Kong or the banks around the world will have to get prepared if there should be more volatility coming into the market,” he said.
– Vivian Kam, Jihye Lee
Japan factory activity growth stays contracted for five straight months
Japan’s factory activity for March has risen slightly, but still remained in contraction territory for the fifth straight month, a flash estimate from au Jibun Bank showed.
The manufacturing purchasing managers’ index climbed to 48.6 from 47.7 in February, its first rise since March 2022.
A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction in growth.
But the estimate for Japan’s services sector came it at 54.2 for March, slightly above the 54.0 print for February, and the strongest reading since October 2013.
— Lim Hui Jie
Australia’s factory and services activity forecast to contract in March
Australia’s services and factory activity is expected to fall into contraction territory in March, based on estimates by Juno Bank.
Manufacturing purchasing managers index in March came in 48.7, while the services PMI came in at 48.2, down from 50.5 and 50.7 in February, respectively.
A PMI above 50 shows expansion, while a reading under 50 signals a contraction in growth.
The bank noted weak demand led to lower business activity. This was due to higher interest rates, still-elevated inflation and softer economic conditions, which affected new business for both Australian goods and services.
— Lim Hui Jie
Japan’s core inflation falls from January peak
Japan’s core inflation reading fell from its January peak of 4.2% to 3.1% year-on-year in February, government data showed Friday.
The reading matches expectations of economists surveyed by Reuters.
Overall, nationwide inflation was at 3.3% for the month compared to a year ago, also lower than the January print of 4.3%.
The economy’s consumer price index excluding fresh food and energy also rose 3.5% for the month year-on-year.
— Jihye Lee
Treasury Secretary Yellen says emergency actions to backstop banks could be used again if needed
Treasury Secretary Janet Yellen said Thursday that the federal emergency actions used to backstop Silicon Valley Bank and Signature Bank customers could be used again if necessary.
“We have used important tools to act quickly to prevent contagion. And they are tools we could use again,” Yellen said in written testimony before a House Appropriations subcommittee.
“The strong actions we have taken ensure that Americans’ deposits are safe,” she added. “Certainly, we would be prepared to take additional actions if warranted.”
Her comments come as regulators have aimed to reassure customers and investors amid the banking crisis that was promoted by Silicon Valley Bank’s closure.
— Alex Harring, Christina Wilkie
Jobless claims come in below expectations
Jobless claims unexpectedly nudged lower last week, pointing to a labor market that remains extremely tight.
Initial filings for unemployment insurance totaled 191,000 for the week ended March 18, below the estimate for 198,000, the Labor Department reported Thursday. That was a decline of 1,000 from the previous period.
Continuing claims, which run a week behind, rose by 14,000 to 1.694 million.
Stock market futures edged lower following the data release.
—Jeff Cox
CNBC Pro: Why one fund manager has never owned a bank stock — and reveals what he looks for instead
Some investors are tiptoeing back into bank stocks after last week’s selloff, but fund manager Ian Mortimer is steering clear.
In fact, he has never owned a bank stock in any of his funds. He reveals why on CNBC Pro Talks.
Pro subscribers can read more here.
CNBC Pro: Wall Street downgrades European banks and names stocks to buy “in case markets turn sour”
Wall Street is downgrading European banks after stresses in the sector led to the emergency merger of two large Swiss banks.
Two investments also upgraded another sector and named a dozen stocks to own “in case markets turn sour”.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Source link: https://www.cnbc.com/2023/03/24/asia-markets-fall-over-yellen-remarks-on-banks-japan-core-inflation-slows-.html