The Bank of Japan headquarters (top C) is seen in Tokyo on December 19, 2023.
Kazuhiro Nogi | Afp | Getty Images
Hong Kong stocks rebounded Tuesday to lead gains in Asia markets, while Japan's Nikkei 225 index was marginally lower after the Bank of Japan kept its monetary policy unchanged in its first policy meeting of the year.
Hong Kong's Hang Seng index jumped almost 3%, with tech stocks leading the charge. Bloomberg reported that Chinese authorities were considering a stimulus package worth 2 trillion yuan ($278.53 billion) to stabilize the country's stock markets.
Mainland China's CSI 300 rose 0.4%, rebounding off a near-five year low, to close at 3,231.93.
Videogame stocks in Hong Kong rose afterChina's gaming authority removed draft rules from its website. The measures proposed last month would have restricted spending and rewards for playing video games. The regulator's website, however, was unavailable as of Tuesday.
The Nikkei 225 slipped marginally to close at 36,517.58, while the Topix fell 0.11% to 2,542.07.
In Australia, the marked a third straight day of gains, rising 0.51% and ending at 7,514.9.
South Korea's Kospi added 0.58% to 2,478.61, while the small-cap Kosdaq index was flat and ended at 840.11.
Overnight in the U.S., the Dow Jones Industrial Average and set fresh all-time highs, with the Dow gaining 0.36% to finish above 38,000 for the first time, while the S&P added 0.22% to hit record highs.
Thetech-heavy Nasdaq Compositeadvanced 0.32%. The moves from the indexes signaled that Wall Street is indeed in abull runthat began in October 2022 after stocks plunged earlier that year.
— CNBC's Brian Evans and Alex Harring contributed to this report
Singapore consumer prices rise more than expected in December
TOPSHOT - People pass by as the city skyline is reflected in a puddle leftover from earlier rain in Singapore on February 8, 2022.
Roslan Rahman | Afp | Getty Images
Singapore's consumer prices rose more than expected in December, according to official data.
December CPI rose 3.7%, more than a Reuters poll estimate of 3.5%. It was higher than the 3.6% rise in November.
Singapore core CPI in December rose 3.3% compared with expectations of 3.1%.
Housing, food, cultural and recreational segments saw the biggest rise, while clothing and footwear price growth cooled.
The Monetary Authority of Singapore is expected to keep its policy intact when it releases its policy statement later this month.
— Shreyashi Sanyal
Shares of Zee Entertainment fall 10% after Sony calls off merger
Shares of Zee Entertainment plunged 10% after Sony announced Monday that it has scrapped plans for a $10 billion merger between its Indian subsidiary Sony Network Pictures India and the the Indian media conglomerate.
Sony said in a statement Monday that closing conditions were not met within the two years starting from the December 2021 announcement. While Sony said the two sides were in good faith negotiations to extend the end date, they were unable to reach an agreement within the 30-day discussion period.
Sony said it does not expect the failed merger to materially impact its financial results.
— Charmaine Jacob
Bank of Japan retains its ultra-loose policy, trims core inflation forecast
The Bank of Japan expectedly retained its ultra-loose monetary policy at its first meeting this year, while cutting its core inflation forecast for the next fiscal year.
The BOJ decided unanimously to keep interest rates at -0.1%, and stuck to its yield curve control policy that keeps the upper limit for 10-year Japanese government bond yield at 1% as a reference, according toa policy statementreleased Tuesday, following a two-day meeting.
In itsquarterly outlook on the Japanese economy, BOJ board members lowered their median growth forecast for core consumer prices — which it defines as inflation that excludes food prices —to 2.4% for fiscal 2024 starting this April, compared with 2.8% they estimated in October.
All the economists surveyed by Reuters expected the Japanese central bank to maintain its negative rate policy this month — making the BOJ the world's only central bank with negative rates. Governor Kazuo Ueda is scheduled to explain this decision in a press conference later this afternoon.
Read the full story here.
— Clement Tan
Chinese authorities reportedly weigh $280 billion rescue package for stock market
Chinese authorities are considering a package of measures worth 2 trillion yuan ($278.53 billion) to stabilize its stock markets, Bloomberg reported.
Citing people familiar with the matter, Bloomberg reported that this would come from the offshore accounts of state-owned enterprises.
Chinese Premier Li Qiang recently chaired a meeting of the country's cabinet, which called for taking "stronger, more effective measures to stabilize the market and improve market confidence."
Hong Kong's Hang Seng index jumped 2%, powered by tech stocks, but the mainland Chinese CSI 300 was marginally below the flatline.
— Lim Hui Jie
Hong Kong stocks rebound after falling for two days as tech shares surge
Stocks in Hong Kong surged Tuesday, with the Hang Seng index jumping more than 3% after two straight days of declines.
Shares of technology companies led the advance in beleaguered Hong Kong markets — Asia's worst performer last year — pushing the Hang Seng Tech index up nearly 5%.
Shares of NetEase jumped 5.23%, Alibaba rose 4.43%, Tencent gained 4.12% and Bilibili advanced 8.3%.
The Hang Seng index had fallen nearly 14% in 2023, declining for a fourth straight year.
Property stocks were also higher on Tuesday, with Longfor Group jumping nearly 10%, Logan Group up 5.7%, and Country Garden gaining 6.56%.
— Shreyashi Sanyal
South Korea's producer prices climb at faster rate in December
South Korea's producer price index rose 1.2% year on year in December, accelerating from the 0.6% rise in November.
On a month on month basis, producer prices rose 0.1%, reversing from the 0.4% fall in November.
Separately, the country's PPI increased 1.6% for the whole of 2023, a sharp slowdown from the 8.4% rise for 2022.
— Lim Hui Jie
Bitcoin slides below $40,000 as crypto ETF met by 'sell the news' wave
A Bitcoin logo on a screen in Hong Kong, China, on Tuesday, Dec. 5, 2023.
Paul Yeung | Bloomberg | Getty Images
Bitcoin, the world's most popular cryptocurrency, fell decidedly below $40,000 for the first time this year.
It was last trading at $39,690, according to Coin Metrics, in early Asia trading Tuesday, also weighing down smaller peers including Ethereum.
Bitcoin has fallen 14% since Jan. 10, the day the SEC allowed ETF trading for the cryptocurrency. Ether, which has been outperforming bitcoin, has gained 3% during the same period.
"Bitcoin's month-long stay above the psychologically important $40,000 level ends unceremoniously as the approval of ETFs has been met by a 'sell-the-news' wave compounded by capital flight from GBTC (Grayscale Bitcoin Trust)," said Antoni Trenchev, co-founder of digital asset companyNexo.
"It feels like Bitcoin investors are running up a descending escalator right now as traditional financial benchmarks enjoy the easier ride to record highs. This period where Bitcoin has to sprint to stand still might well last a few weeks as locked-up GBTC investors finally get an opportunity to exit their positions."
TheGrayscale Bitcoin Trust ETFis the world's largest, with over $25 billion in assets under management.
CEO of Grayscale Investments Michael Sonnensheintold CNBC last week that most of the approved bitcoin ETFs won't survive.
— Shreyashi Sanyal
‘It’s really bad’: China strategist warns of deflation, rock-bottom consumer confidence
Customers shop for fruit at a supermarket on November 9, 2023.
Visual China Group | Getty Images
Deflation may soon start biting into Chinese growth, as Beijing looks at another three to six months of a "very painful economy," Shaun Rein, founder of the China Market Research Group said.
"This is something investors need to be cautious of. The economy here is bad, it's pretty ... it's really bad. I've been in China for 27 years, and this is probably the lowest confidence I've ever seen," Rein told CNBC's "Squawk Box Europe" on Monday.
"So deflation is starting to wield its ugly head. Consumers are waiting for discounts. They're very nervous."
In December, depressed prices for pork — which makes up around a fifth of China's CPI basket —heralded the possible advent of deflation.
Read the full story here.
— Ruxandra Iordache
CNBC Pro: Volkswagen and more: Barclays names European 'conviction' stock ideas — and gives one 59% upside
Barclays has made an upbeat forecast for stocks in 2024, expecting higher, yet more moderate, returns than the exceptional gains of last year.
The investment bank believes stocks still have room to rise if inflation continues slowing, allowing central banks to eventually cut interest rates.
CNBC Pro takes a look at five companies, including Volkswagen, in Barclays' European "Conviction with Catalysts" list of stock ideas that offer strong upside potential.
Subscribers can read more here.
— Ganesh Rao
CNBC Pro: JPMorgan and Morgan Stanley are bullish about these U.S.-listed names in China's internet sector
Morgan Stanley and JPMorgan named their key China internet picks and the themes to watch right now.
Both Wall Street banks indicated that it will be an alpha-driven market for the sector.
"For 2024, we think an alpha-driven investment strategy will continue to offer good risk/reward," JPMorgan said in a Jan. 16 note.
Both banks named their preferred names in the sector. All are traded in the United States. One named a "good contrarian long case," giving it 107% upside.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Investors should prepare for a market selloff soon despite equities hitting new heights, says HSBC
The may have soared to new heights to close last Friday's trading session, but HSBC says that investors shouldn't count on the equity rally to carry on for much longer.
"Under the hood, there are cracks emerging," wrote analyst Max Kettner. "While it may be tempting to chase the latest all-time highs, we maintain our view of a Reverse Goldilocks episode hitting virtually all asset classes in the coming months."
As evidence, Kettner pointed to "shakier" activity in markets beyond the U.S. large-cap names driven by the AI frenzy. Small- and micro-caps, high-beta and meme stocks are all down this year, alongside European equities.
Additionally, Kettner underscored that the gains in U.S. large-cap stocks have so far been primarily driven by high-quality names. On the other hand, low-quality names appear to already have begun suffering.
— Lisa Kailai Han
Oil rises after suspected Ukraine drone strike on Russia fuel terminal
Oil prices rose more than $1 on Monday, after a suspected Ukrainian drone strike on a major Russian fuel terminal placed renewed focus on the threat to crude supplies.
The West Texas Intermediate futures contract for February rose by $1.42, 1.93%, to trade at $74.83 a barrel. The Brent contract for March gained $1.12, or 1.43%, to trade at $79.68 a barrel.
Ukrainian drones struck a Russian fuel processing and export terminal on the Baltic Sea called Ust-Luga, sources in Kyiv told the BBC and The Wall Street Journal.
"The Ukrainian drone attack on the Baltic port raises the question: Is this going to be a policy decision by Ukrainians to attack Russian oil infrastructure," said Bob Yawger, managing director and energy futures strategist at Mizuho Americas. "If that's the case, that's a problem," Yawger said.
— Spencer Kimball
Dow tracks toward 3rd record close of 2024; S&P 500 on course for 2nd
Any closing gain for the Dow on Monday will be its second straight record and third this year, having reached those earlier milestones on Jan. 2 (37,715) and Jan. 19 (37,864). The blue-chip index is also on pace to take out Friday's intraday peak of 37,933.73.
The 30-stock Dow eclipsed its prior high, dating from January 2022, on Dec. 13, 2023, and went on to end the month with a total of seven new, all-time closing highs.
The came to the party a little later, finally taking out its January 2022 highs on both a closing and intraday basis on Friday, Jan. 19. It's now poised to set a record for a second straight day on Monday.
The Nasdaq Composite Index, meanwhile, has yet to top its Nov. 19, 2021 closing record of 16,057, or its Nov. 22, 2021 intraday peak of 16,121.
Nasdaq Composite since intraday record Nov. 22, 2021
— Scott Schnipper
As a financial expert with a deep understanding of global markets and economic trends, I am well-equipped to provide insights into the article you've shared. My expertise is demonstrated by a comprehensive knowledge of various financial indicators, central bank policies, and market dynamics.
Let's delve into the key concepts mentioned in the article:
Bank of Japan (BOJ) Monetary Policy:
- The Bank of Japan held its first policy meeting of the year and decided to retain its ultra-loose monetary policy.
- The BOJ kept interest rates at -0.1% and maintained its yield curve control policy.
- The central bank also trimmed its core inflation forecast for the fiscal year 2024, lowering it to 2.4% from the previous estimate of 2.8%.
Hong Kong Stock Market:
- Hong Kong's Hang Seng index rebounded by almost 3%, led by a surge in tech stocks.
- The rebound was attributed to reports that Chinese authorities were contemplating a stimulus package of 2 trillion yuan ($278.53 billion) to stabilize the country's stock markets.
Mainland China Markets:
- Mainland China's CSI 300 rose by 0.4%, recovering from a near-five year low.
- The potential stimulus package from Chinese authorities aimed to improve market confidence.
Video Game Stocks in Hong Kong:
- Video game stocks in Hong Kong experienced a rise after China's gaming authority removed draft rules from its website.
- The proposed rules, if implemented, would have restricted spending and rewards for playing video games.
Global Market Overview:
- Japan's Nikkei 225 index marginally declined after the BOJ announcement.
- Australia's market marked a third straight day of gains.
- The U.S. stock market, represented by the Dow Jones Industrial Average and S&P 500, set fresh all-time highs, signaling a bull run that began in October 2022.
Singapore Consumer Prices:
- Singapore's consumer prices rose more than expected in December.
- The Consumer Price Index (CPI) for December increased by 3.7%, surpassing the Reuters poll estimate of 3.5%.
Zee Entertainment and Sony Merger:
- Shares of Zee Entertainment fell by 10% after Sony announced the cancellation of a $10 billion merger between Sony Network Pictures India and Zee Entertainment.
- Sony cited unmet closing conditions within the two-year period from the December 2021 announcement.
These insights provide a comprehensive overview of the economic and market developments discussed in the article. If you have any specific questions or need further analysis on a particular aspect, feel free to ask.