An aerial view of the central business district and Sydney Opera House on February 17, 2023.
David Gray | Getty Images News | Getty Images
Asia-Pacific markets climbed even as U.S. Treasury yields put pressure on Wall Street equities Monday.
On Tuesday, investors in Asia will observe business confidence surveys from Australia and consumer confidence data from Japan.
In Australia, the S&P/ASX 200 started the day up 0.29%, rebounding from Monday’s losses.
Japan’s Nikkei 225 also climbed 0.67%, while the broad based Topix gained 0.63%.
South Korea’s Kospi rose 0.61%, extending gains from Monday, while the small-cap Kosdaq rebounded 0.59%.
Futures for Hong Kong’s Hang Seng index stood at 16,831, pointing to a weaker open compared to the HSI’s close of 16,732.85.
Overnight in the U.S., all three major indexes remained largely range bound, with investors awaiting the consumer price index report out on Wednesday to gauge the U.S. Federal Reserve’s rate cut path.
The Dow Jones Industrial Average inched lower by 0.03%, while the S&P 500 ticked down by 0.04%. Meanwhile, the Nasdaq Composite closed marginally higher by 0.03%.
Treasury yields rose, with the rate on the benchmark 10-year Treasury note up about 4 basis points to 4.42%.
— CNBC’s Hakyung Kim and Yun Li contributed to this report.
Hyundai, Kia team up with India’s Exide Energy for producing EV batteries in India
South Korean automakers Hyundai and Kia have signed a memorandum of understanding with Indian battery company Exide Energy for strategic co-operation in India’s EV market.
Exide said that both the parties will work together for the development, production and supply of battery cells for Hyundai Motor’s electric vehicles in the Indian market.
Hyundai said the move will position the company and Kia as “pioneers in applying domestically produced batteries” in their upcoming EV models in the Indian market.
Hyundai stock was down 0.55% on Tuesday, while Kia shares rose 0.65%.
— Lim Hui Jie
U.S. to award Samsung up to $6.6 billion for Texas expansions: Reuters
The U.S. government plans to offer $6.6 billion in subsidies to South Korea’s Samsung Electronics for expanding its chip output in Texas, according to a report by Reuters.
The report said the subsidy will go toward the construction of four facilities in Taylor, including one $17 billion chipmaking plant that Samsung announced in 2021.
The subsidy will also be for investment in an undisclosed location and Samsung will more than double its investment in the U.S. to over $44 billion as part of the deal, according to the report.
Samsung shares were mostly flat on Tuesday.
— Lim Hui Jie, Reuters
CNBC Pro: Data centers are set for an AI-fueled boost, UBS says — naming 3 stocks to play the trend
The data center sector is poised for fast growth in the years ahead, according to UBS.
The investment bank predicts the data center sector will grow between 15% and 20% in 2024 and 2025, and “healthy” double-digit growth in the following years.
It names three related stocks to play the trend.
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: This AI stock could fall 50% and has an ‘exaggerated artificial intelligence narrative,’ Morningstar says
Energy sector is outpacing the market as surging oil lifts stocks to all-time highs
The Valero refinery next to the Houston Ship Channel is seen in Houston, Texas, on May 5, 2019.
Loren Elliott | Reuters
The energy sector has pulled up from behind to overtake the broader market this year as a surge in crude prices pushes stocks to all-time highs.
The energy sector has gained more 17% this year, compared to a 9% gain for the S&P 500.
Exxon Mobil hit an all-time intraday high of $122.15 on Friday and has gained more than 21% for the year. The refiners Marathon Petroleum, Phillips 66 and Valero also hit all-time highs on Friday. Those stocks are up 47%, 27% and 40%, respectively, for the year.
Diamondback Energy is trading at all-time highs Monday dating back to its initial public offering in October 2012, while ConocoPhillips is at levels not seen since November 2022.
The energy rally may still have room to run given that the sector is still underperforming the broader market by 15% over the past year. Many momentum funds have not included the sector yet because they look at 12 months’ performance.
“This suggests there is likely more upside for the group, as it just broke out of a two-year base with relative strength turning up,” Jonathan Krinsky, a technical analyst with BTIG, told clients Sunday.
— Spencer Kimball
Coming quarters will see higher inflation, says Apollo’s chief economist Torsten Slok
Recent data supporting a recovery in manufacturing activity and “signs of life” in inflation are some of the factors pointing to an impending market slowdown, according to Torsten Slok, chief economist at Apollo Global Management.
“This repricing of rates, I think, is very important because it is telling you that we’ve been waiting for this slowdown for so long. Why isn’t everyone expecting this rate slowdown to come in the next several quarters, in particular with the tailwind of the stock market up $10 trillion since the November FOMC meeting?” Slok told CNBC earlier Monday. “We have a dramatic tailwind to consumption and to capex over the coming quarters that will continue to support inflation to the upside.”
Against this backdrop, Slok pointed out that gains in equity market are spreading to other sectors beyond technology. He advised investors to seek out winners and losers from a “bottom-up perspective,” rather than just reaching for the “Magnificent Seven,” which posted sky-high returns last year.
— Pia Singh
Yellen doesn’t rule out tariffs on China green exports
U.S. Treasury Secretary Janet Yellen attends a press conference at the U.S. Ambassador’s residence in Beijing on April 8, 2024.
Pedro Pardo | Afp | Getty Images
Treasury Secretary Janet Yellen said Monday that measures such as tariffs on China’s green energy exports are not out of the question.
“I wouldn’t rule anything out at this point. We need to keep everything on the table. We want to work with the Chinese to see if we can find a solution,” she said in an interview with CNBC’s Sara Eisen, when asked about the possibility of Washington imposing tariffs if China does not adjust its approach to industry incentives.
“I’m not thinking so much of export restrictions, as some shifts in their macroeconomic policy, and a reduction in the amount of, particularly local government subsidies, to firms,” Yellen said.
Yellen also noted the U.S. planned to “underscore” a needed shift in policy at future discussions.
— Fred Imbert
