Shares trade on a mixed basis; the dollar index crosses 110
Singapore and Thailand will be hit first by US recession, economists warn
Singapore and Thailand are likely to be hit harder by a U.S. recession than the rest of the region, economists told CNBC.
Maybank’s senior economist Chua Hak Bin said Singapore’s reliance on exports and its small open economy played an important role.
Thailand’s tourism sector will also be one of the first to be hit if the United States falls into a recession, Chua said, adding that another “wild card” would be when China reopens its borders.
Read the full story here.
— Charmaine Jacob
Dollar index marks 110, hits highest level since 2002
The U.S. dollar index hit 110.086 in Asian morning trade, hitting a new two-decade high.
The Japanese yen weakened further to 140.3 after hitting a 24-year low last week. The Korean won was at 1,370.87 against the greenback, a level not seen since April 2009.
CanSino Biologics surges after inhaled vaccine gains emergency use approval in China
CanSino Biologics rose 14.5% after its inhaled Covid vaccine received emergency use approval in China over the weekend.
The company announced approval from China’s drug regulator to use its newly developed inhaled vaccine as a booster dose.
in its latest earnings release, reported a 69.45% decline in revenue in the first half of this year compared to the same period a year ago, as demand for Covid vaccines declined at the global scale.
CanSino shares rose 4.7% after paring some gains.
Japan’s service sector activity drops for the first time since March
The Jibun Bank Japan Services Purchasing Managers’ Index fell to 49.5 seasonally adjusted in August from 50.3 in July.
The marginal decline marks the first contraction in service-sector business activity since March, S&P said in the reportciting the recent spike in Covid cases in the country.
“As Japan now faces its seventh and most severe pandemic wave, severe cost pressures and a deteriorating global economic outlook, the Japanese private sector is likely to remain under pressure in the months ahead. “said Annabel Fiddes, associate director of economics at S&P. Global market intelligence.
Caixin services PMI shows Chinese services activity increased in August
China’s Caixin Services Purchasing Managers’ Index for August came in at 55.0, versus July print of 55.5.
The official non-manufacturing PMI for August is 52.6.
PMI readings are sequential and represent month-on-month expansion or contraction, where the 50 point mark means there is no change from the previous month.
CNBC Pro: This tech stock is up nearly 20% in the past year — and a pro says it still has a ways to go
Tech stocks have had a tough year so far, with some of the biggest names in the red.
But one cybersecurity firm stood out for its relative resilience, and market veteran Nancy Tengler thinks the action is just beginning.
Tengler, who is CEO and chief investment officer of Laffer Tengler Investments, said his optimism about the company could be construed as “controversial” but argued it was actually a safer bet in the tech space.
Pro subscribers can learn more here.
Australia’s business activity grows at slowest pace in seven months
The seasonally adjusted S&P Global Australia Services PMI business activity index came in at 50.2 in August, down from 50.9 in July, marking the slowest rate of growth in seven months.
The S&P Global Report noted that aggregate demand rose only slightly in August.
“The slow expansion of business activity in August was a sign that inflationary pressures and recent interest rate hikes were weighing on sales,” Laura Denman, economist at S&P Global Market Intelligence, said in a press release. .
Although inflationary pressures have eased from record highs earlier this year, overall business confidence has fallen to its lowest level since April 2020, the report said.
CNBC Pro: Mohamed El-Erian reveals where to invest right now
As stock and bond valuations fall simultaneously, investors should look to exit “distorted markets”, according to Mohamed El-Erian, chief economic adviser at Allianz.
“There was a time when all asset prices went up – stocks and bonds – and we forgot about correlations. Why worry about correlations when you get paid to hold both risk assets and risk mitigating assets? It’s a wonderful world,” he said. CNBC’s Steve Sedgwick on Friday.
“But the first half taught us, and what we have learned since mid-August, [is] that they can both fall at the same time.”
Investors looking for alternatives have several options, El-Erian says.
CNBC Pro subscribers can learn more here.
—Elliot Smith and Katrina Bishop