Asia-Pacific markets are mostly higher as investors digest the Fed’s smaller quarter-point increase

UBP told CNBC’s “Squawk Box Asia” on Thursday that Hong Kong’s economy is “in a position to return to expansion” this year.

“We are seeing signs of a cascading acceleration in January. This is good news,” said Carlos Casanova, chief economist for Asia at UBP.

This is despite new figures from the Hong Kong government showing that The economy contracted 4.2% in the fourth quarterIt fell for four consecutive quarters in 2022. Real GDP also contracted by 3.5% year-on-year.

“We are confident that we should be in a position to return to expansion in 2023, not only because mainland tourists [are] back after reopening, But…we have more supportive equity valuations that definitely help increase overall sentiment in Hong Kong,” Casanova added.

– Goh Chew Tong

bitcoin It is up 3.72% in the past 24 hours, prices show on Coin Metrics, as investors continue to encourage the US Federal Reserve’s smaller 25 basis point interest rate hike.

The cryptocurrency briefly touched $24,000 and was last traded at $23,986.65, hovering at the highest levels since mid-August 2022.

ether It rose by 5.77% and was last traded at $1,677.13.

the dollar index Refinitiv data showed a decline of more than 0.3% to 100.92, to the lowest levels seen since April 2022, when it last fell below the 101 level, Refinitiv data showed.

The dollar index recorded its lowest level at 101.036 overnight, which is its lowest level since 4/22/2022 when it traded at its lowest level at 100.473.

The index is down 0.74% week-to-date, on pace for a fourth consecutive negative week for the first time since the four-week streak ending Jan. 1. 14, 2022.

– Chris Hayes, Gina Francola, Jihye Lee

Total approved building approvals in Australia increased by 18.5%, according to the Australian Bureau of StatisticsIt is much higher than the 1% increase expected by economists in a Reuters poll.

ABS said in a statement that approvals for private sector homes fell by 2.3%, while approvals for private sector buildings, excluding homes, increased by 56.6%.

The value of non-residential buildings decreased by 1.7%, while the value of total buildings increased by 3%.

– Jihe Lee

Data from Statistics Korea showed South Korea’s consumer price index rose 5.2% in January on an annual basis.

The latest version shows a slight increase from previous readings, after declining from 5.7% in October 2022 to 5.0% in November and remaining unchanged in December.

The prices of living necessities increased by 6.1% compared to last year, while the prices of fresh food items increased by 2.4%.

– Jihe Lee

Investors will closely watch the shares of Adani Group companies after that Adani company withdrew Its IPO followed at $2.5 billion overnight, despite the sale being fully subscribed, which many viewed as a vote of investor confidence.

The company cited the “unprecedented situation and current market volatility” for the decision, adding that it is working to return returns to investors.

“Given these exceptional circumstances, the company’s board of directors felt that it would not be morally right to proceed with the case,” company founder Gautam Adani said in a statement.

“The interest of the investors is paramount, and thus insulating them from any potential financial losses, the Board decided not to proceed with the FPO,” he said.

The move comes after Adani’s shares continued to sell off during Wednesday’s trading session in Mumbai Investor sentiment eroded Since Hindenburg Research announced its short position in the Adani group companies.

Shares of Adani companies It’s down 28% as of the market close on Wednesday. Al-Adani Port and the Special Economic Zone decreased by 19%, Adani for green energy decreased 5.6% Take me back to Total Gas Lost 10% while Bring me back the transmission It closed down 2.8%.

– Jihe Lee

JPMorgan has named five stocks to own amid an expected rally in the broader Chinese stock market in February.

Strategists at Wall Street Bank attributed last week’s massive sell-off in Hong Kong-listed stocks to profit-taking by some investors.

The broader stock market will “up” this month, they said, but will “lag behind in quality consumption as well as cyclical value and growth areas.”

CNBC Pro subscribers can read more about the five stocks JPMorgan has selected.

– Ganesh Rao

Shares in Alibaba have enjoyed a strong rebound this year, although the recent downturn in its share price has some investors worried.

But the Wall Street favorite isn’t the only game in town, with several stocks also offering exposure to the Chinese internet sector.

Professional subscribers can Read more here.

– Xavier Ong

The Federal Reserve raised overnight lending rates by 25 basis points, or 0.25 percentage point, in line with investor expectations. The hike raised the Fed’s target range to 4.5%-4.75%, the highest level since 2007.

However, in its statement, the Fed maintained language noting that the FOMC still sees the need to “Continuous increases in target rangeMarket participants had hoped for some dilution of the phrase, but the statement, which was approved unanimously, kept it intact.

– Jeff Cox

Jerome Powell said he doesn’t expect the Fed to cut interest rates this year, as some top strategists expect.

“Given our outlook, I don’t see us cutting interest rates this year, if our outlook comes true,” the Fed chair said.

Powell also said he is “not worried” about the bond market implying another cut before a pause, because some market participants expect inflation to fall faster than the Fed.

“If we see inflation come down more quickly, that will impact our policy position of course,” Powell said.

—Jesse Pound

Powell acknowledged that there have been positive signs in recent employment reports even as labor data remains strong, but said it’s too early to celebrate.

“It’s good that the inflation we’ve seen so far hasn’t come at the expense of the labor market,” Powell said, but added that the economy is still in an “early stage” of deflation.

He said the decline in commodity prices and data showing the recent downturn in the rental housing market is “a good story”.

However, he said the Fed “doesn’t see inflation yet” in the core services portion of inflation, excluding housing.

—Jesse Pound

gold It reached a session high not seen since April.

The metal was trading at a high of $1,956.60 during Wednesday’s trading. This is the highest level it has been trading since April 22, 2022, when gold reached $1,957.80.

Alex Haring and Gina Francola