Asia-Pacific markets, Wall Street, industrial production, and Hong Kong ease restrictions

The Bank of Japan announced two rounds of unscheduled purchases of Japanese government bonds in an effort to contain upward pressure in yields, according to a notice.

The central bank offered to buy unlimited amounts of 2- and 5-year bonds at a fixed rate – and another offer to buy 600 billion yen ($4.5 billion) of 1-10-year bonds.

This is in addition to The latest announcement to buy Japanese government bonds Every business day at a rate of 0.5% effective December 20th.

The 10-year government bond yield fell 0.22%, to stand at 0.465%. Bond yields move inversely with prices.

Last week, the central bank widened the yield curve’s tolerance range 10 years Japanese government bonds down to 0.5% on either side of its 0% target from the previous 0.25% range.

– Lee Ying Chan

Government data showed that South Korea’s November retail sales fell 1.8% year-on-year, falling further after seeing a 0.2% decline in October.

Meanwhile, its industrial production rose 0.4% for the month, recovering slightly after experiencing four straight months of previous declines.

South Korea is expected to release its Consumer Price Index on Friday, with economists polled by Reuters expecting to see inflation fall further by 5%.

– Jihe Lee

Oil prices have fallen slightly as China continues to see an increasing number of Covid cases as well Medical resource strain Optimism clouds the nation’s reopening and fuels demand expectations.

Brent Crude Futures It decreased by 0.46%, to close at $82.88 a barrel. Similarly, the West Texas Intermediate USA It decreased by 0.49%, to $78.58 per barrel.

“Even the narrative of China’s reopening may be faltered by the record penetration of Covid-19 in China,” Vishnu Varathan of Mizuho Bank wrote in a note, adding that reopening should not be mistaken for “permanent immunity” from the risks of a global recession.

– Lee Ying Chan

Italy will require All inbound travelers from China to undergo Covid testsReuters reported that its health minister said, after authorities in Milan reported that nearly 50% of passengers on two flights from China had tested positive.

Reuters reported that it has not been specified what measures will be imposed on expatriates who test positive for the virus.

Separately, the UK is considering following suit after the US announced mandatory testing on arrivals from China telegraph mentioned.

– Lee Ying Chan

It’s been a bad year for tech companies, and many investors have been wondering when tech stocks will rebound.

Technology fund manager Jeremy Gleeson of AXA Investment Managers told CNBC Pro Talks last week that he still believes in the sector.

Explains why and names the stocks to buy.

CNBC Pro subscribers can read more here.

– Wizen tan

Kraken digital currency exchange announced that it would cease operations In Japan next month, and de-registration from the Japan Financial Services Agency on January 31, 2023.

The exchange cited a confluence of “current market conditions in Japan” and a “weak crypto market globally” as the reasons behind its move.

The decision was also part of Kraken’s efforts to “prioritize resources and investments in those areas with which they align.” [its] strategy and will best position Kraken for long-term success.”

bitcoin It fell by 0.64% in the last 24 hours and was last trading at $16,571.12, according to currency metrics. ether It decreased by 1.18%, to $1,193.34.

– Ryan Brown, Lee Ying Chan

Airline passengers entering the United States from China will need to have a file Negative covid testa federal health official announced Wednesday.

The rule comes into effect on January 5 and applies to all travelers who are at least two years old from China, Hong Kong and Macau. The rule applies regardless of nationality or vaccination status.

After attempting a zero Covid policy for much longer than other major countries, China is now experiencing a wave of infections after rolling back public health restrictions in weeks.

– Jesse Pound

an Apple It fell through the key $129 level and hit a new 52-week low for the second day, Wednesday.

Apple, the largest stock in the market, is seen by some analysts as a leader in the overall market and a significant influence on investor sentiment.

“It’s not great for the overall market,” said Todd Sohn, a technical analyst at Strategas. “The end of the year is an unconventional time, but if it lasts into the first two weeks of the year, it’s real.”

Apple fell through the $129 support in early trading on Wednesday and touched as low as $126.41 before reversing. The stock was at $127.15 in the afternoon.

“If your senior weighs poorly and hits new lows, it’s not cool. Your best player doesn’t score,” he said. Sun said the five biggest names in the market are still losing ground. “The silver lining is that the impact on the S&P 500 is declining.”

– Patty Dom

Reopening the world’s second largest economy could provide a buying opportunity for investors as China removes many Covid restrictions.

Investors took the latest developments as a signal to start snapping up Chinese stocks. They predict that the Chinese economy could get a boost in 2023, while the US and Europe continue to grapple with the delayed impact of monetary tightening that could hamper economic growth.

“A lot of institutional investors have been less heavy on Chinese stocks,” said Carlos Aciles, co-founder and CIO of Glovista Investments.

“And I think that was a mistake, because it ignored this very important potential fundamental case that is being priced in right now, which is the case of the Chinese economy going through next year on a similar recovery trajectory that we saw this year in the case of the United States.”

CNBC Pro subscribers can read the full story here.

– Sarah Maine