Hong Kong stocks rise as Chief Executive John Lee announces more Covid easing measures - CNBC

Hong Kong volition region each mandatory PCR tests for inbound travelers, Chief Executive John Lee said successful a property briefing announcing further easing of the city's Covid restrictions.

Lee added the metropolis volition besides cancel the vaccine walk scheme, adding that the authorities volition follow "more targeted measures" for aged vaccination.

Hong Kong volition besides region each societal distancing measures, including a prohibition connected radical gatherings of much than 12 people, Lee said, adding the measures volition instrumentality into effect Dec. 29.

– Jihye Lee, Lee Ying Shan

Hong Kong Chief Executive John Lee said that Hong Kong "has reached a comparatively precocious vaccination rate," adding that the metropolis has a "sufficient magnitude of medicine to combat Covid."

Free Covid vaccinations volition nevertheless not beryllium provided to short-term travelers, officials said successful the briefing.

"We privation to forestall visitors coming to Hong Kong to usage the vaccines astatine the disbursal of Hong Kong radical and we volition not connection authorities procured vaccines escaped of complaint to non Hong Kong residents," authorities officials said, adding that visitors are required to enactment a minimum of 30 days to person a booster shot.

Daily Rapid Antigen Tests and regular PCR tests volition inactive beryllium required for those moving for residential attraction homes, officials said.

—Lee Ying Shan

Hong Kong is slated to scrap its mandatory PCR tests for inbound travelers, South China Morning Post reported, citing radical acquainted with the matter.

The study added that Hong Kong volition afloat driblet its vaccine walk scheme, which requires impervious of 3 doses of Covid vaccination to participate definite premises – the metropolis volition besides region a mandatory five-day location isolation for adjacent contacts.

Hong Kong Chief Executive John Lee is expected to denote the latest updates successful a media briefing astatine 3:30 p.m. section time.

The measures volition besides see lifting a existent prohibition connected nationalist gatherings of much than 12 people, portion maintaining rules for wearing masks.

—Lee Ying Shan

Hong Kong-listed shares of Chinese EV shaper Nio dropped 9.11% successful Asia trading hours aft the institution lowered its 4th fourth transportation outlook, citing proviso concatenation disruptions from Covid outbreaks successful large Chinese cities.

The institution present expects to present betwixt 38,500 to 39,500 vehicles, down from its archetypal projection of 43,000 to 48,000 vehicles, according to the updated transportation guidance.

Its New York-listed shares saw an 8% driblet during U.S. trading hours.

— Rebecca Picciotto, Lee Ying Shan

South Korea's export maturation successful December is expected to people the 3rd period of annualized drop, according to economists polled by Reuters.

Average forecasts task exports to autumn 10.1% successful December connected an annualized ground – a flimsy betterment aft seeing a driblet of 14% successful November, erstwhile it saw the biggest contraction since May 2020.

Economists expect the country's import maturation successful December to person dropped 0.6%, resulting successful a commercialized shortage of astir $6.7 billion.

South Korea is scheduled to merchandise its commercialized information connected January 1.

— Lee Ying Shan

The Bank of Japan reiterated that its latest determination to grow the output curve power tolerance scope does not mean a alteration successful its absorption of monetary policy, according to the Summary of Opinions from its December meeting.

"The enlargement of the scope of 10-year JFB output fluctuations from the people level is not intended to alteration the absorption of monetary easing," it said.

"It is simply a argumentation measurement to marque the existent monetary easing ... much sustainable," it added.

Japan's cardinal slope added that reviewing its ostentation people of 2% is "not appropriate."

"Revision of that worth is not due since it could marque the people ambiguous and the monetary argumentation effect inadequate," it said.

– Jihye Lee

Shares of Tesla suppliers successful Asia fell arsenic accumulation astatine the company's Shanghai works reportedly remained paused aft seeing a question of Covid infections among its Chinese workforce.

South Korea's LG Chem fell 3.66% and Japan's Panasonic mislaid 0.31% successful aboriginal Asia trade. Shares of Contemporary Amperex Technology, besides known arsenic CATL, fell 3.39%.

– Jihye Lee

Oil prices roseate connected the backmost of a imaginable request boost fueled by China's reopening, arsenic good arsenic Moscow's announcement to prohibition lipid sales to countries participating successful the U.S.-led terms headdress connected Russian crude.

Brent crude futures roseate 0.2% to $84.50 a barrel, portion the U.S. West Texas Intermediate futures gained 0.19% to $79.7 a barrel.

According to a decree by Russian President Vladimir Putin, which was published connected the Kremlin portal, Moscow said the established prohibition "applies to all stages of sales up to and including the final buyer."

– Lee Ying Shan

The U.S. authorities is considering imposing caller Covid rules for travelers from China, officials said.

"There are mounting concerns successful the planetary assemblage connected the ongoing COVID-19 surges in China and the deficiency of transparent data, including viral genomic series data, being reported from the PRC," officials said.

Separately, Japan announced connected Tuesday it would necessitate a antagonistic Covid trial for visitors from China starting Dec. 30.

Read the full story here.

– Jihye Lee

China's authoritative manufacturing Purchasing Managers' Index for December is expected to travel successful astatine 48 connected Saturday, beneath the 50-point people that separates maturation from contraction.

Analysts polled by Reuters foretell the speechmaking volition stay unchanged from November's speechmaking released by the National Bureau of Statistics.

PMI readings are sequential and correspond month-on-month changes successful mill activity.

— Lee Ying Shan

Tesla suspended accumulation astatine a works successful Shanghai connected Saturday aft a Covid outbreak among its employees astatine the facility, the Wall Street Journal reported.

The determination comes arsenic an hold of a planned eight-day accumulation pause, according to the report. The electrical conveyance shaper had informed employees that accumulation volition resume connected January 2, it said.

Tesla stocks plunged 11% astatine the adjacent and continued to descent further successful after-hours trading.

—Lee Ying Shan, Alex Harring

Platinum is connected way for its champion 4th since 2009 — and stocks associated with the metallic are besides posting beardown performances.

The metallic is trading up astir 19.86% compared with the commencement of the quarter. That's the champion show platinum has seen since the archetypal 4th of 2009, erstwhile it gained 19.89%.

If platinum surpasses that quarter, it volition beryllium the champion 4th since the archetypal successful 2008. In that period, it gained 33.96%.

Stocks associated with platinum are rising successful turn. During this quarter, Impala Platinum added 31.7%. Anglo American Platinum and Sibanye Stillwater followed, gaining 21% and 17.6%, respectively, successful the aforesaid period.

The Platinum Investment Council attributed immoderate of the terms summation to carnal stocks of the metallic being imported into China, which has decreased proviso elsewhere.

— Alex Harring, Gina Francolla

Oil prices reached a three-week precocious arsenic investors hedged hopes of request recovering connected the latest quality of China's Covid restrictions easing.

Brent crude gained $1.55, oregon 1.9%, to $85.47 a barrel. U.S. West Texas Intermediate crude added $1.37, oregon 1.7%, to $80.93. 

Both deed highs not seen since Dec. 5 earlier successful the trading day. China's National Health Commission said Monday it would halt requiring travelers coming into the state to quarantine, a determination viewed by investors arsenic a cardinal measurement successful rolling backmost the Covid restrictions that person hampered planetary proviso chains and travel.

Shares of China-based companies trading connected U.S. exchanges roseate successful the premarket arsenic the state eases Covid restrictions. China announced it plans to assistance quarantine requirements for travelers opening Jan. 8.

Shares of Alibaba gained 1.5%, while JD.com and Pinduoduo rose much than 2% each.

China ETFs besides gained, with the KraneShares CSI China Internet ETF up 2.7% successful the premarket, connected gait for its archetypal summation successful 3 sessions. iShares China Large-Cap and iShares China Large-Cap added 2% each.

The quality besides lifted Macau-linked casino stocks successful the premarket. Las Vegas Sands was past up 1.4%, portion Wynn and Melco Resorts roseate 2.5% and 4.2%, respectively.

— Samantha Subin

International stocks, but particularly emerging marketplace stocks — and astir notably emerging marketplace worth stocks — connection the top likelihood of outperforming ample and tiny stocks successful the U.S. implicit the adjacent 7 years, adjacent aft adjusting for inflation, according to the latest monthly projection from Grantham Mayo Van Otterloo & Co.

Emerging marketplace worth stocks are apt to instrumentality a existent 9% per annum implicit the adjacent 7 years, portion emerging marketplace stocks arsenic a full are forecast to instrumentality 5.2% a year. International small-cap stocks are projected to instrumentality a existent 4.5% portion planetary large-cap stocks travel successful astatine 2.4% a year, aft inflation.

The U.S. isn't forecast to support up, with U.S. tiny caps projected to shrink 1.4% each twelvemonth aft inflation, and U.S. ample caps estimated to autumn an mean 1.8% annually implicit 7 years.

Similarly, emerging marketplace indebtedness is apt to extremity up arsenic the best-performing fixed-income class, returning a existent 3.5% annually, followed by U.S. currency astatine +0.8%, U.S. inflation-linked bonds astatine 0.3%. International bonds hedged against currency vulnerability are forecast to suffer 1.8% a twelvemonth and U.S. bonds to instrumentality -0.3%.

As stocks floundered successful 2022, valuations improved and the outlook for aboriginal returns has brightened. At the commencement of 2022, GMO pegged emerging marketplace worth stocks to instrumentality +5% annually implicit 7 years, emerging marketplace stocks +2.2%, planetary tiny caps -1.2%, planetary ample caps -2.5%, U.S. tiny caps -6.5% and U.S. ample caps -7.3%.

U.S. currency was projected to suffer the slightest magnitude of wealth astatine the commencement of the year, falling 1.1% a twelvemonth aft ostentation looking retired implicit the adjacent 7 years, followed by emerging marketplace indebtedness astatine -1.7%, U.S. inflation-linked bonds (-3.7%), U.S. bonds (-4.1%) and currency-hedged planetary bonds (-4.7%).

— Scott Schnipper

Bonds yields climbed Tuesday, putting unit connected maturation stocks similar technology.

The output connected the 10-year Treasury enactment was past up by 11 ground points astatine 3.854%. The 2-year Treasury output roseate 8 ground points to past commercialized astatine 4.402%.

Yields and prices person an inverted relationship. One ground constituent is equivalent to 0.01%.

The tech-heavy Nasdaq Composite, which is much susceptible to moves successful rates, past traded 1.2% lower.

— Samantha Subin