Asia markets mostly rise as U.S. inflation forecasts fall, Nikkei to reach new 2023-highs

Shares of Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. increased on Tuesday. wall street journal The US government plans to allow South Korean and Taiwanese chip makers to keep their operations in China.

The WSJ reported that Alan Estevez, undersecretary of commerce for industry and security, told a gathering of industry officials that the administration would extend the current exemptions for two markets in a bill aimed at making it more competitive with China. said it was his intention.

In South Korea, Samsung Electronics rose 1.27% and SK Hynix rose 2.8%, ahead of Taiwan’s opening.

– Lee Ji Hye

Indian consumer price index In May, it rose 4.25% year-on-year, marking the lowest inflation rate since January 2021.

That was down from 4.7% in April and below the 4.42% forecast of economists polled by Reuters.

Clothing and footwear prices were the highest in May at 6.64%, followed by house prices, which rose 4.84%, according to government data.

— Lim Huisier

NVIDIA, a powerhouse in the artificial intelligence computing market, could face increased competition from custom chip designers in the near future, according to Morgan Stanley.

“In our view, budget costs and energy requirements will be the two biggest constraints on AI computing in the future,” Morgan Stanley analysts led by Charlie Chan said in a June 11 note to clients.

“Therefore, we expect more and more energy-efficient, low-cost AI custom chip designs to match or exceed the growth of general-purpose GPUs from NVIDIA and AMD.”

The investment bank has overweight five global stocks that could benefit from this trend.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Analysts singled out a group of companies that would benefit from a prolonged period of high interest rates: companies with plenty of cash and strong balance sheets.

The U.S. Federal Reserve is expected to pause interest rate hikes this week, but some fear it may resume later. This is partly because inflation is stronger than it appears and the labor market remains tight.

CNBC Pro screened the S&P 500 and MSCI World Indexes for such cash-rich stocks. One of his stocks could go up nearly 80% of his, and another of his two semiconductor stocks (currently popular stocks among investors) also appeared.

CNBC Pro subscribers can read more here.

— Tan Weizhen

Shares closed higher on Monday as investors grew more optimistic that the central bank may hold off on raising rates at this week’s policy meeting.

The S&P 500 Index rose 0.93% to close at 4,338.93 while the Nasdaq Composite Index rose 1.53% to close at 13,461.92. The Dow Jones Industrial Average rose 189.55 points, or 0.56%, to close at 34,066.33.

Investors will also be on the lookout for new inflation data this week as the May CPI is released on Tuesday.

— Brian Evans

It’s been a relatively quiet day on Wall Street as investors focus on the Federal Reserve Board meeting scheduled for midweek.

Over 31.5 million shares of the SPDR S&P 500 ETF Trust, a tracker for the entire S&P 500 index, were trading as of 2:00 pm ET, with two hours left in the trading day. His daily average over the past 30 sessions has traded about 80.6 million shares.

The low trading volume highlights the typical period of calm before the storm seen early in the week when the Fed is scheduled to meet. Investors will watch Wednesday’s announcement and press conference to see if there will be a change in the rate hike path, as well as Fed Chair Powell’s comments on economic conditions and future monetary policy.

Before that, Tuesday’s release of the Consumer Price Index data will also be eye-catching given its link to inflation.

— Alex Haring

Increased competition from electric car maker Nio may limit the tailwinds from improved delivery, Nomura said.

Analyst Frank Huang has begun covering shares of China-based auto makers neutrally. His $7.50 price target suggests that U.S.-listed stocks will fall about 3% next year from the close of trading on Friday.

“We believe we are on track to improve second-half 23F deliveries,” Huang said in a note to customers on Sunday, adding that first-quarter deliveries were “lackluster.” “However, based on NIO’s guidance on 2023 deliveries and the overall EV industry growth outlook, we expect NIO’s implied upside to be capped by increased competition and limited market share improvement in 2023F. increase.”

Mr. Huang’s price target suggests a further downside to the stock, which has already fallen more than 14% this year.

The company cut prices and ended free battery replacements for new buyers on Monday, even though management said earlier this year it would not be in a “price war” on electric vehicles. US stocks rose more than 7% in Monday trading.