1 hour ago
China’s real estate recession expected to last for years
Wall Street economists have warned that a slowdown in China’s property market could weigh on the economy in the years to come.
Goldman Sachs economists, led by Chinese economist Wang Lisheng, wrote in a note over the weekend that there was a “quick fix to persistent weakness in the real estate sector, largely linked to lower-tier cities and private developer finance. I don’t think so,” he said.
Goldman economists say the real estate market is “L-shaped recovery“- defined as a sharp decline followed by a slow rate of recovery.
Morgan Stanley added in its outlook paper that it would also lead to concerns of spillovers to the rest of the Asia-Pacific region if monetary easing fails to help faltering sectors.
“There will be downside risks if China’s property sector does not stabilize even with the easing measures we expect.” “In that scenario, China’s confidence and financial conditions would tighten, which would not only have a direct impact on China’s growth, but also adversely affect the region.”
– Lee Ji Hye
2 hours ago
South Korea’s import and export prices fell further in May
South Korea’s export prices in May fell 11.2% year-on-year, the largest drop since March 2010 when export prices fell 12.2%. That comes after prices fell 7.2% in April.
Import prices also fell 12% year-on-year, following a 6% drop in the previous month.
The Korean won fell 0.42% against the US dollar to 1,273.02, while the KOSPI gained 1.5%.
– Lee Ji Hye
2 hours ago
South Korea’s unemployment hits record low in May
Korean Unemployment rate It reached a record low of 2.5% in May, and this level was recorded in August 2022.
Government data showed a total of 28.84 million people were employed in May, up 1.2% from the same month last year.
The employment rate for the population in May was 63.5%, up 0.5 percentage points from the same month last year.
Separately, the number of unemployed people in May was 787 million, down 11.5% from the same month last year.
— Lim Huisier
14 hours ago
CPI hits two-year low
The consumer price index rose 4% last month to its lowest level in two years, in line with expectations from Dow Jones. Month-over-month changes in CPI and so-called core indicators, which filter out volatile food and energy prices, were also in line with expectations.
— Jeff Cox
6 hours ago
Stocks End Higher Ahead of Federal Reserve Policy Meeting
Stocks closed higher on Tuesday as traders closed out the session and increased optimism that the latest inflation data could support the central bank’s decision to hold off a rate hike in June.
The Dow Jones Industrial Average rose 146 points, or 0.4%, to close at 34,212.12. The S&P 500 Index rose 0.7% to close at 4,369.01 while the Nasdaq Composite Index rose 0.8% to 13,573.32.
Inflation rose by 0.1% in May, down from 0.4% in May and up 4% from a year earlier, according to the consumer price index. The Fed is due to decide its next policy action on Wednesday.
— Brian Evans
11 hours ago
WTI Crude Futures Hit Best Day Since May
WTI (JUL) rose 3.7% to $69.74 on Tuesday, its highest since May 5, when it rose 4.05%. The day also marked the first time the commodity turned positive in the last four trading sessions.
The VanEck Oil Services ETF (OIH) is also up 4%, its fastest pace since June 2, when the OIH rose 5.12%. Today’s OIH leaders include NexTier, Patterson-UTI, Nabors and Transocean, all of which are up more than 5% during Tuesday’s trading session.
— Ha Kyung Kim, Gina Francola
11 hours ago
China internet ETF up 4%
The CraneShares CSI China Internet ETF (KWEB) rose about 4% in trading on Tuesday.
That put the fund on pace for its best performance since June 1, when it closed 4.97% higher.
Baidu rose more than 7%, leading the index gains. iQIYI and Lufax followed, each making more than 6% of his progress.
All US stocks included in the index rose in Tuesday’s trading.
Despite the rally, ETFs are still down more than 4% since the start of the year.
— Alex Haring, Gina Francola