Asia-Pacific markets trade mixed as Japanese stocks see second day of losses

Tokyo bank stocks rebounded as the broader index fell

Japanese yen at the strongest in more than four months

The Japanese yen strengthened overnight, after the Bank of Japan announced the expansion of its yield curve control band.

The currency strengthened by more than 5% against the Australian dollar and the New Zealand dollar – while it strengthened past 3% against the US dollar.

The yen strengthened after the Bank of Japan announced the expansion of its yield curve control band

CNBC Pro: Fund manager says a recession is ‘just around the corner’ – and names cheap stocks to play it

Market watchers are increasingly worried about an impending recession and fund manager Steven Glass is no exception.

Against this backdrop, he said he is targeting companies with profitable visibility that trade at attractive valuations.

His picks include a Big Tech name he says is “very affordable” with “huge margin potential.”

Pro subscribers can read more here.

— Zavier Ong

Stocks held on to gains, snapping a 4-day losing streak

Stocks took gains on Tuesday, snapping a four-day losing streak.

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The Dow Jones Industrial Average rose 92.47 points, or 0.28%, to close at 32,850.01. The S&P 500 gained 0.11% to 3,821.73, while the Nasdaq Composite rose 0.01% to close at 10,547.11.

—Carmen Reinicke

The Bank of Japan is more hawkish earlier than expected, signals

The Bank of Japan’s sudden policy shift sent interest rates soaring around the world, as investors reacted to mounting evidence that central bankers around the world would continue to pressure rates. in interest is higher.

“It was definitely a surprise. I don’t think anyone out there expected it,” said Ben Jeffrey, rate strategist at BMO. Japan’s central bank moved earlier than expected to tighten policy. The BOJ changed its yield curve policy to allow the yield on the 10-year Japanese government bond to move 50 basis points to either side of its zero target rate, from 25 basis points.

The announcement pushed rates higher around the world, as yields on Japanese government bonds (JGBs) rose to 7-year highs. Rates move in opposite directions. The US 10 year jumped to 3.68%.

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“They were really the last one standing in terms of being dovish, and now they’re still dovish but not as much,” Jeffrey said. “This is clearly bearish JGBs and fixed income globally, but in the longer term it should help the yen which will make Treasurys more attractive to Japanese investors next year.”

–Patti Domm

Expect a more challenging environment ahead, says Atlantic Equities

Atlantic Equities analysts expect a more challenging backdrop for the global consumer in 2023.

“Inflation may be on a headline basis but input costs remain high and companies will look to at least hold if not get more prices in some cases,” the analyst Edward Lewis said in a note on Tuesday. “It could become more challenging as elasticity levels begin to normalize with US retailers starting to push back against pricing, in line with where European peers have been throughout the year.”

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He highlighted Coca-Cola and Pepsi as some of his favorite consumer picks, citing “category momentum, continued investment and strong execution supporting high growth.”

— Tanaya Macheel

The stock market has shed $11.7 trillion so far this year

It’s been a tough year for stocks, which are currently in a bear market and still are.

From the market’s annual high on Jan. 3 through this morning, U.S. stocks have shed $11.7 trillion in the market cap, according to data from the Bespoke Group.

“The maximum drawdown was $13.6 trillion at the low of 9/30, so we’ve seen a market cap increase of just under $2 trillion since then,” analysts wrote on Tuesday. “In dollar terms, this drawdown is worse than anything investors have experienced. That’s pretty deflationary if you ask us!”

Of the $11.7 trillion, more than $5 trillion in losses came from just five companies – Apple, Microsoft, Amazon, Alphabet, Meta and Tesla.

—Carmen Reinicke


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