Japanese movers: Softbank, Nintendo, Toyota Val
Apple suppliers in Asia decline after analysts cut
China reports better-than-expected factory activity for September
China’s official manufacturing PMI rose surprisingly in September to 50.1, well above the 49.6 analysts polled by Reuters had expected.
The 50 point mark separates growth from contraction. The PMI prints comparative activity from month to month.
Meanwhile, the Caixin / S & P Global Manufacturing Purchasing Managers Index, a special survey of factory activity – It reported a contraction at a reading of 48.1.
“Weak demand conditions and lower production requirements prompted companies to scale back their purchasing activity in September, with the fastest rate of decline in four months,” a Caixin press release said.
The official non-manufacturing PMI came in at 50.6 in September, down from 52.6 in August.
– Abigail Ng
Factory activity in China is expected to shrink again
China’s official manufacturing PMI for September is expected to come in below the 50-point level that separates growth from contraction, according to Reuters poll of analysts.
Economists expect a figure of 49.6, slightly higher than August’s figure of 49.4, which would mark the third consecutive month of contraction.
The PMI readings are sequential and represent expansion or contraction on a monthly basis.
A special survey of Chinese factory activity is also scheduled for Friday, and analysts polled by Reuters expect the reading to come to 49.5.
– Abigail Ng
Japanese industrial production rose more than expected
CNBC Pro: Is the Fed on the right track? This is what you should do next, says Wall Street veteran Ed Yardeni
The US Federal Reserve announced another 75 basis point hike earlier this month, sending the fed funds rate up to a range of 3% to 3.25%. The central bank also indicated that it may raise interest rates to 4.6% in 2023 to control inflation.
Ed Yardeni, the economist who coined the term “bond vigilantes,” gives his view because the Fed’s response to inflation is under intense scrutiny.
Professional subscribers can Read more here.
– Xavier Ong
Fed’s Loretta Mester says interest rates aren’t tight yet
Cleveland Federal Reserve President Loretta Mester said interest rates are not yet capped, and more needs to be done to bring down inflation.
“Inflation is still at its highest level in 40 years,” Meester told CNBC’s Steve Liesman during an appearance on “Squawk Box.” “So the talk now has to be what we have to do, what we have to do to get back to price stability, because we can’t have a healthy economy, and we can’t have good labor markets over time, unless we go back to price stability.”
Meester said she’s probably “a little above the average path” among Fed officials when it comes to raising interest rates, citing persistent inflation.
“We’re still not in a restricted money rate territory, so you’re right, we raised the money rate 300 basis points this year, but look at how high inflation is,” Meester said.
– Sarah Min
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