Asia-Pacific shares struggle for direction ahead of BoJ rate decision

Gaming shares jump after China grants license approvals

Hong Kong listed gaming stocks rose after China granted license approvals for 88 games, amongst which include NetEase, Tencent Holdings and miHoYo, marking a further easing of Beijing’s gaming crackdown.

Shares of NetEase jumped as high as 6.81% in early trade, notching its highest in more than four months. Tencent stocks added 0.11%.

–Lee Ying Shan

Bank of Japan likely to lift yield curve control another 50 basis points: UBS

Japan’s central bank is likely to broaden its 10-year treasury yield curve control range by another 50 basis points to a range of 1% below and above its 0% target, UBS Global Wealth Management executive director Tan Teck Leng said.

“The scenario of a completely abandonment of the YCC is unlikely,” he said on CNBC’s “Squawk Box Asia,” adding a move would be “uncharacteristic” of the central bank.

“I think the easiest for them to do is remove the cap, let it find fair value – but then again it comes to very big uncertainties, which is why we think that, as a middle ground, they have to at least raise it to a 1.0% cap,” he said.

The yield on the 10-year Japanese Government Bonds exceeded the upper ceiling of its band for a 5th straight session on Wednesday morning ahead of the BOJ’s monetary policy announcement.

Japan’s core manufacturing orders for November slump more than expected

Japan’s private-sector manufacturing orders for November fell 8.3% compared to the previous month, according to official data.

The drop was significantly larger than Reuters’ expectations of a 0.9% decline. On an annualized basis, manufacturing orders fell 3.7%.

The private-sector machinery figures exclude orders from volatile ones for ships and electric power companies.

—Lee Ying Shan

CNBC Pro: Thinking of jumping back into Big Tech? This investor is wary of 2 stocks in particular

CNBC Pro: Morgan Stanley says cheaper EVs are coming — and names the global stocks set to benefit

As electric cars become increasingly popular, a new manufacturing technique that could make them more affordable is garnering interest, according to Morgan Stanley.

Some automakers are outsourcing the process which could benefit three leading Asian parts suppliers, said the Wall Street bank.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Stocks end the day mixed, Dow falls almost 400 points

The Dow Jones Industrial Average Index fell to end the day, as Goldman Sachs shares weighed on the stock index.

The Dow lost 391.76 points, or 1.14%, to close at 33,910.85. The S&P 500 fell 0.2% to 3,990.97. The Nasdaq Composite gained 0.14% to end the day at 11,095.11.

— Tanaya Macheel

Bank of America sees a later start to the recession

A recession probably won’t start now until later in 2023 as consumer spending has been stronger than expected and the Federal Reserve eases up on the intensify of its interest rate hikes, according to Bank of America.

“We push back the timing of our outlook for a mild recession in the US economy by about one quarter given durability in consumer spending on account of strong labor markets, excess saving, declining energy prices, and easier financial conditions,” the firm said in a client note. “That said, we think the headwinds will lead consumers to reduce spending and push the saving rate higher as the year progresses.”

That puts the recession into the second quarter, driven by a an investment-led slowdown leaking to consumer spending.

After pushing its benchmark borrowing rate up by 4.25 percentage points in 2022, the Fed is expected to ease back, with a 0.25 percentage point increase in February. That is forecast to be followed by additional quarter-point increases in March and May.

Rate cuts likely won’t come until 2024, the firm said.

—Jeff Cox

Goldman Sachs shares fall on earnings miss

Goldman Sachs shares declined 2.4% after the Wall Street investment bank shared fourth-quarter earnings results that missed analysts’ expectations on both the top and bottom lines.

The bank reported earnings of $3.32 per share on $10.59 billion in revenues. Consensus estimates called for earnings of $5.48 a share on revenues of $10.83 billion, according to analysts surveyed by Refinitiv.

Provisions for credit losses also came in slightly above expectations.

— Hugh Son, Samantha Subin

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