Ismail joins a chorus of supporters from the flood-swept country saying that despite its small carbon footprint, it has borne the brunt of climate change. “Pakistan is one of the countries most affected by climate change. We have, as you know, a very, very small carbon footprint, we don’t really produce carbon dioxide and other harmful gases,” Ismail told CNBC’s “Street Signs Asia “. ” on Monday. — Su-Lin Tan
Yen could break above 150, 160 in ‘next two months’ says Jesper Koll
The Japanese yen could weaken further, Monex Group CEO Jesper Koll told CNBC’s “Street Signs Asia.” “I think the parabolic overshoot is still on track, so I expect we’ll see 150, 160 at some point in the next couple of months,” Koll said, pointing to the country’s trade and current account deficits as “strong drivers that will drive the yen weaker.” Japan’s trade deficit widened in July, fueled by a record amount of imports that offset exports, official data showed last month. – Jihye Lee, Charmaine Jacob
‘Modest’ US-led regulations likely to boost China’s trade surplus, Goldman Sachs says
A “moderate amount of controls” by the U.S. government on exports to China is likely to give incentives to China rather than hurt the market, Goldman Sachs chief China economist Hui Shan said in his “Squawk Box Asia” CNBC. Pointing to weaker import data as a driver of the country’s steady trade surplus, he said the latest regulations from the US ordering Nvidia to curb chip sales in China could act as an incentive. “In a way, it will incentivize China to produce more domestically, so the production side of it, especially the trade surplus side, could get a boost,” he said. He added that Chinese officials are “downgrading” the 5.5% GDP growth target and are no longer trying to defend the Chinese yuan from reaching 7. “Seven is just a number,” he said, “if you just look at the surface, it doesn’t look that flattering, but I think policymakers are sending a message where they’re trying to be pragmatic.” – Jihye Li
Barkin says biased ‘towards faster movement’: FT
Richmond Fed President Thomas Barkin said in an interview with the Financial Times that he has a bias toward “moving faster” than slow. “I have a bias in general toward moving faster, rather than slower, as long as you don’t inadvertently break something along the way,” he told the paper, adding that policymakers are likely to keep raising rates until they are “convinced” inflation is under control. “The destination is real interest rates in positive territory and my intention would be to keep them there until we are really convinced that we are putting inflation to bed,” he told the FT. The probability of a 75 basis point hike at the September FOMC meeting rose to 74.0% as of early Wednesday morning US time, according to CME Group’s FedWatch tool. The probability of a 50 basis point hike now stands at 26%, FedWatch showed. – Jihye Li
The Japanese yen weakens further, approaching 145
The Japanese yen fell further to 144.35, its weakest since mid-1998 – as the US dollar index strengthened to a new 24-year high against the Japanese currency. The offshore Chinese yuan also fell to 6.99, nearing 7, after weaker-than-expected trade data. South Korea’s won also weakened, breaking above the 1,380 level for the first time in more than 13 years.
Nomura cuts its China GDP forecast — again
Nomura cut its full-year GDP forecast to 2.7%, another downgrade from the previous estimate of 2.8% set in August. The new outlook is based on Nomura analysis which found 12% of China’s GDP is affected by Covid controls on a weighted basis, up from 5.3% last week. Several cities, including the tech hub of Shenzhen, have tightened Covid controls in recent weeks after new local infections were reported. Chengdu also ordered people to stay at home while authorities conduct mass virus testing. Read the full story here. – Evelyn Cheng
China’s August exports miss forecasts. runs a trade surplus against weak imports
China’s exports rose 7.1 percent in August from a year earlier, official data showed, missing estimates of 12.8 percent after rising 18 percent in July. Imports rose 0.3%, less than a 1.1% rise forecast in a Reuters poll and a 2.3% rise in July. The country posted a trade surplus of $79.39 billion in August due to weaker import numbers, after posting a trade surplus of $101.26 billion in July. – Jihye Li
Oil prices are falling on expectations of further interest rate hikes and lower demand growth
Oil prices fell on Wednesday after more Covid restrictions in China and expectations of more rate hikes globally. U.S. West Texas Intermediate futures were down 1.45% at $85.62 a barrel, while Brent crude futures were down 1.14% at $91.77 a barrel, erasing earlier gains after last OPEC+ meeting and its decision to cut production. A Reuters forecast expects WTI to extend its downtrend to $83.17 a barrel. — Lee Ying Shan
CNBC Pro: Russia-Europe tensions could trigger an ‘upside shock’ in oil markets
Oil and gas stocks are set to be boosted by heightened tensions over Russian gas supplies to Europe, according to one analyst. Kenny Polcari, chief market strategist at SlateStone Wealth, told CNBC’s “Street Signs Asia” that investors should zoom in on large U.S. energy companies that are also good dividend payers. One of the stocks he named is up 125% this year and says there is more “room to run.” Professional subscribers can read more here. — Weizhen Tan
Australia’s economy grows by 0.9% in the second quarter
Australia’s real GDP rose 0.9% in the second quarter after rising 0.7% in the previous period, official data showed. The Australian Bureau of Statistics said continued growth was supported by the first full quarter of reopened borders. The data also showed the Australian economy grew by 3.6% last year. The ABS said strong domestic demand as well as an increase in travel supported overall growth. — Jihye Li
CNBC Pro: This chip stock has beaten its peers convincingly this year — and analysts think it could go higher
After years of underperforming the market, semiconductor stocks have sold off heavily this year. But one stock has emerged relatively unscathed from the market carnage. Not only has it outperformed its peers, it has beaten the S&P 500 by a country mile. And analysts believe the stock could still go higher. Professional subscribers can read more here. — Zavier Ong
US bond yields hit their highest levels since mid-June
Bond selling lifted U.S. Treasury yields to their highest levels since mid-June as investors weighed what strong economic data meant for future Federal Reserve rate hikes. The yield on the US 10-year note rose as high as 3.353%, the highest level since June 16, when the yield reached 3.495%. Returns are the inverse of prices. The yield on the US 30-year note hit a high of 3.484% and the yield on the US 5-year note hit 3.334%, also both their highest levels since mid-June. The 2-year yield also hit a daily high of 3.535%, but is only the highest yield for the note since Friday. – Carmen Reinick
