Hong Kong shares rose nearly 4% ahead of China’s Covid briefing

Oil prices rose ahead of China’s State Council press conference, as investors continue to monitor developments – paring back some of the losses they saw on Monday, when they hit their lowest levels in nearly a year.

The West Texas Intermediate Futures It increased by 1.76%, to stand at $78.59 a barrel, while it rose Brent Crude Futures It rose 2.28%, to stand at $85.00 a barrel.

However, oil markets may be “miscalculating news of China’s shutdown,” Rystad Energy wrote in a note.

“[The latest lockdowns’] The potential impact on short-term Chinese oil demand, particularly in transportation, is likely to be minor,” the note states, citing the company’s research on real traffic activities in China.

Even as daily Covid cases continue to rise, cities like Shanghai have not shown a slowdown in road traffic activity, according to Rystad Energy’s own research.

– Lee Ying Chan

Indexes in China jumped more than 2% as investors closely watched developments in the country’s coronavirus policy after seeing losses in the previous session.

China’s CSI 300 rose 2.97% in the morning session, while China’s CSI 300 rose Shanghai boat jumped 2.2%. The Shenzhen component The index rose 2.172%.

Local media reported that China’s State Council will hold a press conference on COVID-19 measures at 3 p.m. local time, or 2 a.m. ET.

And the nation witnessed a Reduction in the number of daily infections For the first time in over a week.

– Evelyn Cheng, Jihee Lee

Stocks related to developers of Hong Kong-listed real estate jumped after China’s regulator announced it would lift a ban on raising equity funds for the sector.

China Securities Regulatory Commission announce Five measures to support the real estate market, including the removal of multi-year restrictions on real estate developers selling shares to raise financing.

Seifi Holding Group jumped 13.01% in the first hour of trading, country park also increased by 13.36%, Logan group rose 10.23% and Longfor group 9.88% profit.

– Jihe Lee

Hong Kong Hang Seng Index It is on track to post its best month since April 1999, when the index rose 21.85%.

The index is up more than 3% through Tuesday morning, and is up about 22% for the month of November, according to Refinitiv data.

The HSI closed down 1.57% on Monday, the worst day in a week, when the Hang Seng lost 1.87% on November 21.

–Gina Francola and Jay Lee

Japan Unemployment rate October was flat from September’s reading of 2.6%, according to official data. The number is just above the median forecast of 2.5% of economists polled by Reuters.

The Job-to-applicant ratiowhich measures active job opportunities per job seeker, it was at 1.35. It indicates that there are 135 available jobs for every 100 applicants, which indicates that the job market is still tight in Japan.

Countries retail It rose 4.3 percent in October on an annual basis, missing expectations for a 5 percent increase forecast in a separate Reuters poll.

The latest reading marks the first weakness in retail sales growth since June this year.

– Jihe Lee

St. Louis Federal Reserve Chairman James Bullard said Monday that the Fed should continue to raise its benchmark interest rate in the coming months and that the market may underestimate the possibility that the Fed will become more aggressive.

“We will have to continue to pursue our interest rate increases through 2023, and there is some risk that we have to go higher than [5%],” Pollard said at Barron’s live webinar.

Bullard made waves in financial markets earlier this month when he said that the Fed’s hikes could “Only limited effectsOn inflation yet and that the benchmark interest rate may need to rise to between 5% and 7%.

Bullard, a voting member of the Federal Open Market Committee, said the Fed will need to delay any interest rate cuts next year even if the inflation picture starts to show sustained improvement.

“I think we’ll probably have to stay there throughout 2023 and into 2024, given the historical behavior of core PCE inflation or the Dallas Fed cut average inflation. They’ll go down, I think. That’s my baseline. But they probably won,” Bullard said.

– Jesse Pound

The bitcoin price fell on Monday after BlockFi officially announced that it had filed for Chapter 11 bankruptcy in the wake of FTX’s bankruptcy.

Bitcoin briefly fell to around $16,000 but has already rebounded. The latest was just a 1% drop to over $16,300, as measured by Coin. The action in ether price showed a similar bounce.

BlockFi has been in bad shape since the spring, after the Terra project implosion led to the collapse of Three Arrows Capital. At that time, the company accepted a bailout from FTX that would help it avoid bankruptcy. Of course, FTX is now filing for bankruptcy.

– Tanaya McHale

Many global companies are highly exposed to China, including some of the world’s largest automakers, which generate between 20% and 40% of their global sales in the country, according to Goldman Sachs.

In a note to clients on November 22 — before the latest protests — the investment bank outlined the global auto industry’s exposure to Chinese consumers.

CNBC Pro subscribers can read more here.

– Ganesh Rao

After a winning Thanksgiving week, the three major indexes ended lower Monday as investors sold off amid growing concerns about supply chain disruptions amid Covid-related protests in China.

The Dow Jones Industrial Average It lost 1.45%, or 497.57 points, and closed at 33,849.46 points. The Standard & Poor’s 500 It also decreased by 1.54%, closing at 3,963.94. The NASDAQ Composite It decreased by 1.58% and closed at 11049.50.

– Alex Haring