Jackson Hole and HKEX cancel morning session on typhoon warning

Bank of Japan member says he wants to stick to ultra-loose policy

Toyoaki Nakamura, a member of the Bank of Japan, stressed the need to “patiently maintain” its position on monetary easing, according to Reuters.

In a speech, he said that a tightening of monetary policy when the output gap remains negative would weigh heavily on household economic activities.

Japan continued to maintain extremely loose monetary policy as other central banks aggressively hiked rates. Inflation in Japan is above target, but not as high as in the US and UK

Nakamura said the gap between inflation in Japan and other economies is largely due to slow wage growth.

He also said that if China resumes restrictive Covid measures, it would prolong supply disruptions and hurt Japan’s exports, production and capital spending.

—Jihye Lee

Qantas shares jump after takeover announcement, earnings report

Shares of Australian airline Qantas jumped 10% after the company announced its earnings and announced its intention to buy back its shares.

The company posted an underlying pre-tax loss of A$1.86 billion ($1.29 billion) for the 2022 financial year.

“While the first three quarters of the year were defined by border closures and waves of uncertainty caused by variants of Covid, the fourth quarter saw the highest sustained levels of travel demand since the start. of the pandemic,” Qantas said in a statement.

It also announced plans to buy back shares worth up to A$400 million, according to a filing.

“This is the first return to shareholders since 2019 and follows $1.4 billion in equity capital raised at the start of the pandemic,” the company said.

—Abigail Ng

CNBC Pro: Why Goldman Sachs Thinks This FAANG Stock Is A Sell

FAANG shares generated mixed earnings in the second quarter, but Goldman Sachs is maintaining its buy calls for almost the entire group.

According to the bank, a single action is a sale.

Pro subscribers can read the story here.

— Zavier Ong

HKEX delays morning session due to typhoon, to resume in afternoon

The windows of a restaurant at The Peak are stuck in Hong Kong on August 24, 2022, as the Hong Kong Observatory issued a typhoon No. 8 signal earlier in the morning. HKEX canceled its morning session as a result of the Q8 issue. (Photo by ISAAC LAWRENCE/AFP) (Photo by ISAAC LAWRENCE/AFP via Getty Images)

isaac laurent | AFP | Getty Images

Hong Kong delayed its morning session due to the issuance of Typhoon Signal No. 8, the exchange said on its website. The session should resume in the afternoon as the signal has now been downgraded to a T3.

“If the signal from Typhoon #8 or above, or any announcement of extreme conditions, remains issued at 9:00 a.m., morning trading sessions for all markets will be cancelled,” it says.

The HKEX’s guidelines on its website for resuming its session state that “trading will commence the first half hour approximately two hours after the signal from Typhoon #8 or any announcement of extreme conditions ceases.”

—Jihye Lee

Bank of Korea raises rates

The Bank of Korea raised the country’s benchmark interest rate by 25 basis points to 2.50%.

The move was in line with a Reuters poll, in which all but one of the 36 economists predicted an increase. We expected an increase of 50 basis points.

This follows July’s 50 basis point increase – the biggest increase since the bank adopted the monetary policy system in 1999, even as it expects “lower” gross domestic product growth. May forecast of 2.7%”.

Central bank governor Rhee Chang-yong is expected to hold a press conference explaining today’s decision later this morning.

—Jihye Lee

CNBC Pro: Morgan Stanley and UBS prefer these ‘cheap’ stocks, even in a recession

The risk of recession is increasing, according to Canaccord Genuity analysts led by Tony Dwyer.

“Our indicators suggest that a recession is increasingly likely as we enter the next year, especially if the Fed continues to raise rates,” according to an Aug. 22 research note.

But according to Morgan Stanley and UBS, some stocks still look cheap, even with the risk of a price slowdown. Here are some of their favorite stocks.

Pro subscribers can read the story here.

— Zavier Ong

Treasury yields rise on expectations of a hawkish Fed meeting in Jackson Hole

Treasury yields climb ahead of the Federal Reserve’s annual symposium in Jackson Hole, Wyo, on the notion that the market’s view has been more dovish than that of the central bank.

The three-day event begins Thursday, and the market is mostly focused on a Friday morning speech from Fed Chairman Jerome Powell.

The market priced in a hawkish Fed based on pre-meeting feedback. For example, some Fed officials pushed back against market sentiment that the Fed might cut interest rates soon after it finishes raising them next year.

Yields, which move opposite to prices, rose on expectations that Powell will focus on an aggressive policy of fighting inflation and keeping rates high for longer. The 10-year rate hit 3.11% on Wednesday morning, its highest since late June.

“I think what the bond market is trying to figure out is Powell’s view on this policy reversal in 2023,” said Jim Caron of Morgan Stanley Investment Management.

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