Chinese EV makers slide in Hong Kong trade, Xpeng to new lows after missing estimates
Shares of Hong Kong-listed electric car makers plunged after Xpeng reported a bigger-than-expected quarterly loss of 2.7 billion Chinese yuan ($394 million), without analysts’ estimates.
The figure was also worse than the 1.19 billion Chinese yuan loss reported in the second quarter of 2021.
Xpeng stock plunged more than 13%, hitting new lows since its debut in Hong Kong last year. Its U.S.-listed shares fell 10% during Tuesday’s session.
Shares of Li Auto fell 6.6% and Nio 5.19% in Hong Kong. Geely Auto fell more than 4% and BYD also fell 5.49%. Nio is expected to report earnings later today, while Li Auto reported earnings earlier in August.
Singapore travel stocks muted after news that unvaccinated travelers can skip quarantine
South Korean automakers trade lower after US recalled more than 280,000 vehicles due to fire risks
Korean automakers are trading lower after the US government issued a recall of more than 280,000 Hyundai and Kia vehicles.
The US National Highway Traffic Safety Administration cited fire hazards and advised drivers to “park their cars outside and away from houses”.
Hyundai Motor was down 1.3% in early morning trading and Kia was down 1.4%. Hyundai Mobis also traded down 3.08%.
The agency issued a “stop sale” notice overnight, saying an electrical short “may cause a vehicle fire while driving or when parked and turned off.”
The agency added, however, that there were no confirmed fires, accidents or injuries related to these risks at this time.
– Jihye Lee
IPEF’s first in-person ministerial meeting to be held in Los Angeles next month
The United States will host the first in-person ministerial meeting for its new Indo-Pacific Economic Framework in Los Angeles on September 8-9.
U.S. Trade Representative Katherine Tai and U.S. Commerce Secretary Gina Raimondo will co-host the meeting.
“The first in-person Ministerial Meeting builds on the constructive virtual meetings with 13 Indo-Pacific partners held this year before and after President Biden’s official launch of IPEF to develop an inclusive, high-level economic framework that… will benefit workers and consumers across the region,” the couple said in a statement on Monday.
Previous virtual sessions have taken place in May, June and July.
Next month’s discussions will focus on the four pillars of IPEF, namely trade and supply chains, the statement said.
The framework, which is not a trade agreement, serves as a pivot for the United States to return to Asia-Pacific. It is also seen as a way to counter China’s economic rise.
The IPEF, which is widely seen as symbolic, is made up of Australia, Brunei, Fiji, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, from South Korea, Thailand, Vietnam, Japan and the United States.
— Su-Lin Tan
Australian Dollar, Japanese Yen Weaker Against Dollar After Overnight Moves
The Aussie dollar weakened early in Asia, after rising sharply overnight against a weaker dollar.
The Aussie was trading at $0.6910, after a jump above $0.6950.
“A weaker dollar and higher commodity prices likely contributed to the AUD’s gains,” Carol Kong, senior associate for international economics and currency strategy at Commonwealth Bank, wrote in a note.
The dollar index fell after August flash readings of the S&P Global Purchasing Managers’ Index missed expectations and last came in at 108.695.
The Japanese yen was at 136.87 to the dollar after strengthening to 135.93 overnight.
Morgan Stanley says the ‘smart’ electric vehicle industry is the next big thing in tech. Here are his top stock picks
Morgan Stanley says tech supply chains are poised for growth in the next big thing: smart tech features — from EV batteries to chips and self-driving technology.
The investment bank named its top picks of stocks that should benefit from this trend.
Pro subscribers can read the story here.
Fed’s Kashkari says his biggest fear is that inflation will be more persistent or hotter than expected
Minneapolis Federal Reserve Chairman Neel Kashkari said his biggest fear was that markets are underestimating the level of inflation or its persistence, adding that the Fed may need to be more aggressive than expected.
“The big fear I have deep down inside is that we get it wrong and the markets get it wrong, and that inflation is much more entrenched at a much higher level than we like or the markets like,” he said, commenting on the market. inflation expectations returning to 2% in the next two years.
“Then we will have to be more aggressive than I expected, probably longer, to bring inflation down,” he said at an event at the University of Pennsylvania.
Kashkari also pointed to supply-side shocks behind “one-half to two-thirds” of the country’s high inflation.
“The more supply-side help we get, the less the Fed has to do and the better we are able to avoid a hard landing,” he said. He added, however, that there is evidence that supply chains are starting to normalize.
Kashkari is already seen as the most hawkish of the 19 U.S. central bank policymakers and expects the Fed to raise its key rate – now within a target range of 2.25% to 2.5% – another two points percentage by the end of next year.
– Jihye Lee
CNBC Pro: Citi names energy stock with ‘strongest balance sheet’
The energy sector was a big winner in this year’s volatile stock market.
But a stock always stands out for its “strongest track record,” according to Citi. It also posted a set of second-quarter profits that easily beat its major listed peers.
Pro subscribers can read the story here.
— Zavier Ong