Hong Kong stocks jump 3% as China relaxes some virus rules - CNBC

Strategists astatine Morgan Stanley person raised its proposal for Chinese stocks to overweight, according to a Sunday note.

The upgrade marks the extremity of the firm's equal-weight stance connected Chinese equities that it has held for adjacent to 2 years, strategists led by Laura Wang said.

Morgan Stanley noted aggregate factors seeing "meaningful affirmative development" since November, including what the steadfast views arsenic "a confirmed way towards last post-Covid reopening."

— Michael Bloom, Jihye Lee

Chinese technology, user and travel-related firms listed successful Hong Kong saw crisp gains successful aboriginal commercialized aft immoderate cities successful China saw immoderate easing successful Covid restrictions.

Tech heavyweights Tencent gained 5.5% and Meituan roseate 3.5%, while Alibaba jumped 4.72% and Xiaomi added 7.31%. EV stocks specified as Li Auto jumped 9.19% and Nio climbed 11.5%.

Meanwhile, Hong Kong-listed casino stocks besides jumped, with MGM China rising 12.44%, Wynn Macau climbing 12.35% and Sands China adding 7.5%. Galaxy Entertainment roseate 3.61% and SJM Holdings roseate 4.82%.

Hotpot edifice relation Haidilao soared 15%, and shares of airlines besides popped. China Southern Airlines and China Eastern Airlines each roseate much than 5%, portion Air China gained 4%.

The broader Hang Seng scale was up 3.21%.

— Abigail Ng, Jihye Lee

The Caixin/S&P Global services Purchasing Managers' Index for November came successful astatine 46.7, representing the lowest speechmaking successful six months.

The people besides marks the 3rd consecutive period of contraction successful output and caller work, aft October's speechmaking came successful astatine 48.4, portion September's people was 49.3.

PMI readings are sequential and correspond month-on-month changes successful mill activity. The 50-point people separates maturation from contraction.

"The complaint of diminution was coagulated overall, but remained weaker than the falls seen during the erstwhile large question of Covid-19 cases from March to May," Caixin said successful a release.

"Efforts to curb the dispersed of Covid-19 amid a notable emergence successful lawsuit numbers successful caller weeks, weighed connected work assemblage concern operations and lawsuit request crossed China during November," it added.

China's authoritative non-manufacturing PMI released past week stood astatine 46.7, the lowest since April 2022.

— Abigail Ng

The Chinese currency strengthened to astir 7 against the U.S. dollar pursuing the latest reports that signaled further loosening of China's Covid policies.

The offshore yuan traded astatine 6.9861 against the greenback, strengthening past 7-levels for the archetypal clip since mid-September.

Beijing and Shenzhen are taking steps to loosen investigating requirements and quarantine rules contempt the regular lawsuit number hovering adjacent all-time highs.

The latest moves travel astir a week aft nationalist unrest erupted implicit the strict measures successful assorted parts of the country.

— Jihye Lee

A seasoned Schroders money manager has named 2 planetary retailers that are astir to 'dominate' their sector.

Andrew Brough, who runs the Schroder UK Mid Cap Fund, said the 2 conservatively tally companies are taking marketplace stock up of a recession by silently acquiring failing competitors cheaply.

One of those stocks has already risen by 30% this twelvemonth portion its benchmark scale has declined by 29%.

CNBC Pro subscribers tin work much here.

— Ganesh Rao

Stock futures dropped portion enslaved yields roseate successful effect to the 8:30 a.m. jobs information that came successful stronger than expected by economists.

Here's however each large futures scale and the notable enslaved yields moved implicit the people of the 30 minutes starring up to and pursuing the merchandise of the data:

Goldman Sachs sees 1 accidental successful electrical vehicles that's connected an "upward trend."

This inclination volition summation gait arsenic EVs go "ever much exertion driven" and simpler to build, said Goldman analysts successful a Dec. 1 report.

That's acceptable to payment 1 planetary stock, said Goldman, which gives the banal up to 90% upside successful its bull lawsuit for the firm.

CNBC's Pro subscribers tin work much here.

— Weizhen Tan

Job maturation was stronger than expected successful November contempt the Federal Reserve's efforts to chill the labour market.

Nonfarm payrolls grew by 263,000 past period portion the unemployment complaint was unchanged astatine 3.7%, according to the Labor Department connected Friday.

Payroll numbers were expected to leap by 200,000 much jobs, according to statement estimates from the Dow Jones. The unemployment complaint was expected to stay astatine 3.7%.

Stock futures dropped pursuing the payrolls release.

— Sarah Min