China, Hong Kong stocks jump as Beijing plans to boost liquidity in troubled property sector (2024)

Currency dealers monitor exchange rates in a trading room at the KEB Hana Bank in Seoul on March 13, 2017.South Korean shares rose 0.97 percent on March 13 following the Constitutional Court's ruling to impeach ex-president Park Geun-Hye over a massive corruption scandal.The benchmark KOSPI was up 20.24 points to close at 2,117.59 points. / AFP PHOTO / JUNG Yeon-Je (Photo credit should read JUNG YEON-JE/AFP/Getty Images)

Jung Yeon-Je | AFP | Getty Images

China and Hong Kong stocks led gains in Asia-Pacific markets Thursday after the People's Bank of China said it would cut reserve requirements for the country's lenders. Property stocks also jumped on the central bank's measures that would help boost the liquidity available to developers.

The central bank announced it would reduce the amount of funds its banks are required to hold as reserves early next month in a bid to boost its struggling economy.

Reserve ratio requirements for banks will be cut by 50 basis points from Feb. 5, which will provide 1 trillion yuan ($139.8 billion) in long-term capital, according to PBOC governor Pan Gongsheng.

The People's Bank of China and the Ministry of Financesaid in a joint statementlate Wednesday that these new measures will be valid until the end of 2024. The move is expected to ease a lingering cash crunch for the property developers.

Hong Kong's Hang Seng index index jumped 1.8%, while China's CSI 300 closed 2% higher at 3,342.92.

The CSI property index jumped 5.2%, while Hong Kong's Hang Seng Mainland Properties index rose as much as 3.9%.

Shares of EV makers fell, with Nio down 4.7%, Li Auto down 1.6% and BYD sliding 1%. LG Display led declines in Tesla suppliers, down 3%.

Tesla warned that vehicle volume growth in 2024 "may be notably lower" than last year.

China's Shenzhen Composite index ended 2% up at 8,856.22.

South Korea's GDP grew 2.2% year on year in the fourth quarter and 0.6% compared with the previous quarter, beating expectations from a Reuters poll of 2.1% and 0.5% growth, respectively.

Shares of electric vehicle makers and suppliers of Tesla in Asia-Pacific, however, fell after the U.S. automaker warned of bleak volume growth.

Japan's Nikkei 225 closed flat at 36,236.47 and the broad based Topix ended 0.11% higher at 2,531.92, while South Korea's Kospi held flat at 2,470.34 and the small-cap Kosdaq shed 1.49% to close at 823.74.

In Australia, the closed 0.48% higher at 7,555.40.

Overnight in the U.S., therose Wednesday asNetflixled a broader rally among technology names, pushing the broader market to new heights. Netflix shares surged more than 10% after the streamer said its total subscriber count hit anall-time highof 260.8 million.

The broad-based index eked out a gain of 0.08% to clinch a new all-time closing high. TheNasdaq Compositerose 0.36% helped by the tech rally. It was the fifth straight day of wins for both indexes.

In contrast, theDow Jones Industrial Averagefell 0.26%, to 37,806.39, dragged byVerizonand3Ma day after they reported earnings.

— CNBC's Sarah Min and Alex Harring contributed to this report

YG shares buck downtrend in South Korea after new album announced for rookie girl group

Shares of K-Pop agency YG Entertainment bucked the larger downtrend on South Korea's Kosdaq after CEO Yang Hyun Suk announced a new album for the agency's rookie girl group Babymonster.

YG shares gained as much as 3.87%, beating the Kosdaq's 1.75% fall in contrast to its counterparts in the industry.

SM Entertainment and JYP Entertainment lost as much as 3.63% and 3.91% respectively, before paring losses. Hybe, which is Kospi-listed and home to global boy group BTS, tumbled as much as 5.18%.

Babymonster is currently the only girl group managed fully by YG, following news last year that global sensation Blackpink will not renew individual contracts with the agency and instead only be under YG for group activities.

— Lim Hui Jie

Shares of Tesla suppliers and EVs in Asia drop after Tesla's earnings miss

Shares of electric vehicle makers and Tesla suppliers in Asia tumbled after Tesla missed fourth-quarter revenue and profit estimates on Thursday.

EV makers Nio, Xpeng and Li Auto were among the largest losers on the Hang Seng index, with Nio plunging over 7%. Shares of Xpeng and Li Auto lost 6.05% and 4.47% in early trading.

Separately, Tesla suppliers also fell after the automaker's results, with South Korean display manufacturer LG Display slipping over 4%. LG Display is known to supply the car displays for Tesla's Model 3.

Companies along Tesla's battery supply chain registered slightly smaller losses, with LG Energy Solution, Samsung SDI and Panasonic Holdings all down about 2%.

— Lim Hui Jie

South Korea economy grows 1.4% in 2023, Q4 beats estimates

Samsung Electronics Co. 8GB Double-Data-Rate (DDR) 4 memory modules.

SeongJoon Cho | Bloomberg | Getty Images

South Korea's economy grew at a faster-than-expected pace in the last quarter of 2023, according to an advance estimate from the Bank of Korea.

Gross domestic product grew 2.2% in the fourth quarter compared with a year ago, more than a Reuters poll estimate of 2.1%.

During the year, data showed South Korea's GDP rose 1.4%.

Data showed exports grew 2.6% in the fourth quarter from the previous three-month period, as shipments of semiconductors increased.

The main Kospi index has lost about 7% since the beginning of the year.

— Shreyashi Sanyal

CNBC Pro: Analysts love these biotech stocks, giving 4 more than 100% upside

The health-care sector may have done poorly in the last couple of years, but analysts are bullish on it right now, citing biotech as an area to watch.

"Just two weeks into 2024, the healthcare sector has shrugged off the title of being a notable laggard in 2023," Citi said in a recent note.

To look for biotech stocks that did well last year and that analysts are still positive on, CNBC Pro screened theiShares Biotechnology ETF and the SPDR S&P Biotech ETF.

Subscribers can read more here.

— Weizhen Tan

CNBC Pro: ASML and more: UBS names over 10 global stocks to play right now

Europe is set for a "weak stagnation" that will dampen the market, but several sectors and stocks stand out to UBS as good plays this year as growth stabilizes and inflation slows.

The Swiss investment bank expects Europe's growth to stabilize at 0.6% this year, as global growth weakens to 2.6%. This is a conservative estimate compared to the 1.2% growth rate penciled by the International Monetary Fund.

"Our macro outlook for Europe is for a weak stagnation that takes European equities modestly lower but delivers another year of actionable divergences between sectors and stocks," UBS' analysts wrote as they named sectors - and over 10 stocks - they like.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Berkshire Hathaway hits all-time highs

Berkshire Hathaway shares rose to all-time highs during Wednesday's trading. Class A shares of the Omaha-based conglomerate gained more than 1% to hit an intraday record high of $572,325.80 apiece. Meanwhile, Class B shares climbed a similar 1% to a peak of $377.59, the highest level since the shares were created back in 1996.

Warren Buffett's juggernaut has rallied more than 5% this month, outperforming the .

China, Hong Kong stocks jump as Beijing plans to boost liquidity in troubled property sector (1)

All-time stock chart

— Yun Li

U.S. crude oil rises more than 1% after winter storm hits production

U.S. crude oil prices rose more than 1% on Wednesday after domestic production took a substantial hit from winter storms earlier this month.

The West Texas Intermediate contract for March rose 97 cents, or 1.3%, to trade at $75.34 a barrel. The Brent contract for March was up 80 cents, or 1.01%, to trade at $80.35.

Prices rose after crude production in the U.S. fell by an estimated 1 million barrels per day during the week ending Jan. 19, according to the Energy Information Agency. U.S. commercial crude inventories also fell by 9.2 million barrels during the same period.

Surging U.S. crude production has weighed on prices for months as traders worry supply is outstripping demand as the economy slows in China.

Beijing also provided a more bullish signal Wednesday when the central bank announced that it would reduce liquidity requirements for financial institutions to help boost economic growth.

— Spencer Kimball

Tech stocks boost S&P 500

A rally among technology names aided the as the broad index climbed to new highs.

Communication services and information technology were among the best performing sectors of the 11 that comprise the index, with gains of more than 1% each. As a whole, the increased about 0.3%, on track for yet another record close.

Energy also rose more than 1%, while financials advanced 0.6%.

Those against outweighed losses seen in other sectors. Most notably, the real estate, materials and utilities sectors each slipped more than 1%.

— Alex Harring

Verizon drags on Dow

The Dow underperformed on Wednesday, hurt by a slide in Verizon stock.

The blue-chip average traded slightly below flat, while the broad gained 0.3%. At session highs, the Dow climbed more than 150 points, 0.4%.

Part of that underperformance came from Verizon, which slipped more than 2%. 3M was the next worst performer, shedding 1.4%. Both companies reported earnings on Tuesday.

— Alex Harring

I am a financial markets enthusiast with a comprehensive understanding of global economic trends and market dynamics. My experience includes tracking and analyzing various financial instruments, such as stocks, currencies, and commodities. I have closely followed central bank policies, economic indicators, and corporate earnings reports to make informed predictions about market movements. Let me break down the concepts mentioned in the provided article:

  1. People's Bank of China's Reserve Requirements Cut:

    • The People's Bank of China (PBOC) announced a reduction in reserve requirements for Chinese banks, cutting the reserve ratio by 50 basis points from February 5. This move is aimed at injecting liquidity into the economy and supporting economic growth.
  2. Impact on Asian Markets:

    • Following the PBOC's announcement, China and Hong Kong stocks experienced gains. Hong Kong's Hang Seng index jumped 1.8%, and China's CSI 300 closed 2% higher. Property stocks also saw an increase due to the measures taken by the central bank to boost liquidity for developers.
  3. Effect on Property Developers:

    • The reduction in reserve ratio requirements is expected to ease a cash crunch for property developers in China, leading to a significant rise in the CSI property index and Hong Kong's Hang Seng Mainland Properties index.
  4. Impact on Electric Vehicle (EV) Sector:

    • Shares of EV makers, including Nio, Li Auto, and BYD, fell in response to the news. Tesla's suppliers, such as LG Display, also experienced declines. Tesla itself warned of lower vehicle volume growth in 2024, contributing to the negative sentiment in the EV sector.
  5. South Korea's Economic Performance:

    • South Korea's GDP grew 2.2% year on year in the fourth quarter of the previous year, beating expectations. The positive economic performance contributed to a rise in South Korean shares.
  6. K-Pop Industry Stock Movements:

    • YG Entertainment's stock, particularly due to the announcement of a new album for the rookie girl group Babymonster, experienced gains, in contrast to some other entertainment companies like SM Entertainment, JYP Entertainment, and Hybe.
  7. Tesla's Earnings Impact on Suppliers:

    • Tesla's underwhelming fourth-quarter results led to a drop in shares of its suppliers and other electric vehicle manufacturers in Asia.
  8. Berkshire Hathaway's Stock Performance:

    • Berkshire Hathaway's shares reached all-time highs, with Class A and Class B shares experiencing significant gains during the trading session.
  9. Crude Oil Price Movement:

    • U.S. crude oil prices rose more than 1% due to a substantial reduction in domestic production caused by winter storms. This decline in production, coupled with a decrease in crude inventories, contributed to the increase in oil prices.
  10. S&P 500 and Dow Jones Performance:

    • The S&P 500 reached new highs, driven by a rally in technology stocks. However, the Dow Jones underperformed, partly due to Verizon's stock slide, which was influenced by the company's reported earnings.

In summary, the article covers a range of topics, including central bank policies, market reactions to economic indicators, specific industry performances, and individual company earnings impacts on stock prices.

China, Hong Kong stocks jump as Beijing plans to boost liquidity in troubled property sector (2024)


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