Asia-Pacific markets trade lower; China keeps LPR steady

Malaysian voters leaned towards conservatism at the weekend polls, analysts said

Malaysia's election results will affect 'moderate Malays', says Najib's brother

The lack of a clear winning coalition in Malaysia’s elections over the weekend shows that the country’s politics are changing, analysts said. While reforms of the long-range Barisan national coalition were once popular, voters including young people are leaning towards more conservative and religious parties.

Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs, told CNBC that the liberal opposition party Pakatan Harapan’s “moderately reform image” was threatening to some voters.

“I think it will be extremely difficult for PH, despite having obtained the largest number of seats, to form a coalition or even join a coalition,” said Ó.

Former prime minister and long-time statesman Mahathir Mohamad’s historic loss of his Langkawi seat shows that politics in Malaysia is changing, according to Better Malaysia Assembly counsel and jailed brother of former Prime Minister Najib Razak, Nazir Razak .

“That’s unusual. I mean, that’s like saying, you know, people aren’t voting for brands. They’re voting for what you can deliver for them. So, I think that politics is changing,” he told CNBC’s “Squawk Box Asia” on Monday.

Read the full story here.

— Su-Lín Tan

Malaysia sees sell-off in ‘sin’ stocks after right-wing party wins more seats

Malaysia's coalition party manifesto mentions nothing close to fiscal responsibility: Analyst

Stocks linked to gambling and alcohol consumption in Malaysia sold off on Monday after an Islamic party won more seats than it had before Saturday’s election.

In the past, Parti Islam Se-Malaysia, or PAS, has shown that it does not want gambling and alcohol in Malaysia, said Anand Pathmakanthan, head of regional equity research at Maybank Kim Eng.

Gaming related companies such as Magnum shares fell 8%, Genting lost 5.13% and Sports Toto lost 6.86%. Beer companies listed in Malaysia, including Carlsberg, fell by about 5%, while Heineken fell by more than 6%.

“The sin sectors are still at risk,” Pathmakanthan said, although he added that PAS’s more radical policies may have faded.

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“What we need now is clarity on how they will deal with these sectors in the future and PAS now has more of a say,” he said.

The broader benchmark index fell as much as 1.49% earlier, but was last 0.5% lower.

— Abigail Ng

Oil prices fall as China faces Covid concerns, Goldman Sachs cuts forecast

Oil prices fell by almost a dollar as Covid concerns rose in China with the nation seeing the first virus-related deaths recorded since May this year.

Brent crude futures will lose less than a dollar, or 0.9%, to stand at $86.83 a barrel and US West Texas Intermediate futures fell 1.09% to $79.21 a barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 a barrel for the fourth quarter of 2022, citing demand from China with rising concerns about Covid and insufficient data from the latest Group of 7 oil price limit of Russia.

“We believe the market is right to be concerned about initial fundamentals,” economists led by Jeffrey Currie said in the note, adding the potential for further lockdowns in China to equal the latest production cut by OPEC+ .

— Lee Ying Shan

Hong Kong movers: Tech stocks reopen and fall as China reports Covid-related deaths

Trading houses rise in Japan as Berkshire Hathaway says it ups the ante

Shares of several Japanese trading houses rose early in the Asian session, despite a retreat in the region’s markets, after billionaire Warren Buffett’s Berkshire Hathaway boosted his stake in the firms, according to individual regulatory filings.

Berkshire raised its share by more than 1 percentage point i Mitsubishi, Mitsui & Co, Itochu, Marubeni and Sumitomo holding over 6% in each of the firms, the filings showed.

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Japan-listed Mitsubishi shares rose 1.89% in the morning session, Marubeni rose 2.12% and Sumitomo rose more than 1%. Itochu also rose 0.84% ​​and Mitsui inched 0.16% higher.

This comes days after Berkshire Hathaway revealed that it has increased its holdings of the American depositary receipts of Taiwan Semiconductor Manufacturing Company, causing the Taiwan-listed company’s shares to rise more than 10% in the Asian session.

— Jihye Lee

China keeps its key lending rates on hold as expected

China left its benchmark lending rate unchanged for a third consecutive month, according to an announcement from the People’s Bank of China.

The one-year prime loan rate is fixed at 3.65%, while the five-year rate is also pending at 4.3%, the announcement said.

— Abigail Ng

Exports in South Korea fell further in the first 20 days of November

South Korean exports for the first 20 days of November fell 16.7% on an annual basis, while demand from China fell, according to data from the customs agency.

The drop in exports is a significant drop from the 5.5% drop seen in October compared to the same period a year ago.

Imports also fell 5.5% for the first 20 days of November, leading to a slight improvement in the trade deficit – $4.4 billion for the period, compared to a deficit of $4.9 billion reported in October.

The country recorded a total of $40 billion in trade deficit year to date, statistics from the agency showed.

— Jihye Lee

CNBC Pro: Morgan Stanley’s Mike Wilson predicts S&P 500 bottom, calls it a ‘great buying opportunity’

Morgan Stanley’s Chief Equity Strategist, Mike Wilson, says we are in the “final stages” of the bear market, but the situation will remain challenging for a while longer.

It predicts when—and at what level—the S&P 500 will hit a “new low.”

CNBC Pro subscribers can read more here.

— Weizhen Tan

China is expected to keep its benchmark lending rates steady, a Reuters poll says

China’s central bank is expected to keep its key one- and five-year lending rates on hold, according to analysts polled by Reuters.

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The one-year rate currently stands at 3.65%, while the five-year LPR is at 4.3%.

The People’s Bank of China last cut both rates in August.

China’s offshore yuan was weaker at 7.1376 against the US dollar ahead of the decision early on Monday.

— Abigail Ng

CNBC Pro: Strategist says Chinese tech stocks, like Alibaba, are ‘grossly undervalued’

The value of China’s Big Tech stocks, for example, has fallen by 30% this year Alibabathey did “extremely cheap,” according to investment bank China Renaissance.

Its head of equity, Andrew Maynard, not only believes that the stock market appears to be suffering, but also that investors could miss out on a rally if they remain overweight in China.

“Without a shadow of a doubt, being overweight in China will cost you in the future,” Maynard said.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Markets are watching for more clues about Fed hikes and the economy in the coming week

Investors may be a little more cautious in the week ahead, with stocks looking for direction in quiet trading and bond market warnings of an economic recession getting louder.

The Thanksgiving holiday on Thursday should mean the markets are likely to be quiet on Wednesday and Friday. Traders will be monitoring reports on Black Friday holiday shopping for consumer feedback.

“It’s really a week where data reliance is the key phrase,” said Julian Emanuel, senior managing director at Evercore ISI. “The bias [for stocks] higher unless data continues to deteriorate and the Fed remains on its hawkish side… which has clearly strengthened over the past 48 hours.”

Check out our full in-depth dive into what to expect over the coming week here.

— Patti Domm, Tanaya Machel


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