Most Asia markets fall as investors await key U.S., China economic data – NBC 6 South Florida

This is CNBC’s live blog covering Asia-Pacific markets.

Asia-Pacific stocks fell Thursday as investors awaited U.S. personal consumption expenditures price index data for clues on the Federal Reserve’s interest rate path.

The U.S. personal consumption expenditures price index — the Fed’s preferred inflation gauge — is due later in the day, while China’s manufacturing purchasing managers’ index reading is scheduled to be released Friday.

Hong Kong’s Hang Seng index edged 0.2% higher, while China’s CSI 300 rose 0.6% at open.

Hong Kong on Wednesday said it would do away with property curbs in an effort to buoy its real estate sector and forecast economic growth in a range of 2.5% to 3.5% for 2024.

Separately, Walt Disney and Indian conglomerate Reliance will merge their Indian businesses. The combined entity was valued at roughly $8.5 billion on a post-money basis, excluding synergies. 

Japan’s Nikkei 225 fell 0.4%, while the Topix declined 0.4%. The Nikkei 225 had hit a record high earlier in the week.

South Korea’s Kospi shed 0.5%, while the small cap Kosdaq dipped 0.2%.

In Australia, the S&P/ASX 200 fell 0.1%.

U.S. stock markets slid Wednesday as investors awaited the Fed’s preferred inflation report.

The S&P 500 fell 0.17%, while the Nasdaq Composite fell 0.55%. The Dow Jones Industrial Average shed 23.39 points, or 0.06% to clock a third straight day of losses.

— CNBC’s Hakyung Kim and Brian Evans contributed to this report.

India’s GDP set to fall below 7% in fiscal third quarter of 2023, poll shows

India’s economic growth was set to fall below 7% for the first time during the fiscal year in the October-December quarter, a Reuters poll showed.

Asia’s third-largest economy likely saw growth moderate to 6.6% year on year in the fiscal third quarter as government spending slowed and agriculture sector growth remained muted.

The data will follow a GDP reading of 7.8% growth in the first quarter and 7.6% in the second quarter of the current Indian fiscal year that ends in March.

But momentum likely slowed last quarter, according to the poll which said none of the 63 economists surveyed from Feb. 16-26 expected similar growth rates in the October to December quarter.

— Reuters

Aussie retail sales rebound in January, but underlying growth stalling

Retail sales in Australia rebounded in January, data from the Australian Bureau of Statistics showed.

Australian retail sales rose 1.1% last month, after a 2.1% fall in December.

“The rebound in January follows a sharp fall in December when consumers pulled back on spending after taking advantage of Black Friday sales in November. Retail turnover is now back at a similar level to September 2023,” said Ben Dorber, ABS head of retail statistics.

Retail sales had risen 1.5% in November 2023.

“Spending patterns have shifted because of changes in seasonality around Black Friday as consumers took advantage of discounting in response to cost of living pressures,” Dorber said.

— Shreyashi Sanyal

Japan’s manufacturing activity contracts more than expected in January

Japan’s manufacturing output declined 7.5% in January from the prior month, according to official data.

The reading was slightly below a Reuters poll forecast of a 7.3% drop.

Separately, data showed Japan’s retail sales rose 2.3% year over year in January, in line with Reuters estimates.

— Shreyashi Sanyal

Ready to respond to excess currency volatility, Japan’s top forex diplomat says

Japan’s top currency diplomat Masato Kanda said the country was ready to respond to excessive choppiness in the currency market, according to a Reuters report.

“I won’t comment on recent currency moves. But it’s desirable for exchange rates to move stably reflecting fundamentals,” Kanda, told reporters on the sidelines of the G20 meeting in Sao Paulo.

Kanda is also the vice finance minister for Japan’s international affairs, and had reassured investors last month that he was closely watching how central bank decisions would affect currency markets.

The Japanese yen marginally strengthened against the U.S. dollar and was last trading at 150.58.

— Reuters, Shreyashi Sanyal

CNBC Pro: This fund beat the S&P 500 without holding any Magnificent 7 stocks. Here’s what they’re buying right now

An outperforming fund manager that beat the S&P 500 for two years in a row has named cheap stocks that could ‘easily double’.

The fund returned 31% in 2023 compared to 24% for the S&P 500. It also outperformed in 2022 with 1.8% total return when the U.S. benchmark nearly fell into a bear market.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: ‘Exciting idea’: Fund manager loves this pharma stock – and analysts see more upside ahead

Healthcare companies have gained traction in the past year, with investors piling into likes of weight-loss drug manufacturers Eli Lilly and Novo Nordisk.

One firm in the wider ecosystem that’s perhaps lesser known stands out to fund manager Freddie Lait, however.

“[It’s a] great example of the sort of things we’re looking for – if I’m honest, it’s a business I’ve been watching for about 10 years,” the chief investment officer at Latitude Investment Management told CNBC Pro Talks on Feb. 21.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Stocks close lower Wednesday

U.S. stocks ended Wednesday’s trading session in the red.

The Dow Jones Industrial Average shed around 23 points, or 0.06%.

The S&P 500 and Nasdaq Composite dropped 0.17% and 0.55%, respectively.

— Hakyung Kim

Market breather is overdue—but that’s not to worry about, according to BMO Capital Markets

Technical corrections almost always happen during the second year of bull markets, but that’s normal and healthy, according to BMO Capital Markets.

“We believe the almost unimpeded rally off the October 2023 low and elevated valuation levels necessitate some near-term caution, if history is any sort of guide,” chief investment strategist Brian Belski wrote in a Tuesday note, saying a breather is overdue. “Fortunately, the somewhat unexpected strength and resilience in earnings is likely to sustain stock prices since this is a trend we expect to continue throughout the year based on our above-consensus EPS target ($250).”

Belski advised investors to “not be too concerned” if the market sees some weakness in the upcoming months, and instead use potentially weaker periods as an opportunity to increase their exposure to some favored spots in their portfolios.

The S&P 500 is up 6.2% so far this year, but has lost 0.5% week-to-date.

— Pia Singh

Bitcoin hits $64, 000 level

Bitcoin reached a fresh high of $64,000 Wednesday before turning lower, according to Coin Metrics. This marks the cryptocurrency’s highest level since Nov. 15, 2021, when it rose as much as $66,333.33.

It was last trading at $61,097.00.

— Hakyung Kim