China inflation, BOJ raise interest rates, Japan avoids technical recession

The Bank of Japan is expected to move toward ending its negative interest rate policy by April, subject to annual wage negotiations, said Thierry Wismann, global interest rate and currency strategist at Macquarie Group.

Wisman told CNBC’s “Squawk Box Asia” that the recent tightening of interest rates stemmed from a signal to move away from negative interest rates and this year’s spring labor negotiations between labor unions and employers. Stated.

“If it settles around 5%, [wage growth]”That would satisfy the Bank of Japan that Japan’s wage growth is finally starting to show some upward movement,” Wisman said, although he added: “The risks have shifted to the policy change in March.” he pointed out.

On Monday, Japanese government bond yields rose and the yen strengthened. The benchmark Nikkei Stock Average and TOPIX each fell about 3%.

— dylan butts

Japan’s Nikkei Stock Average led the decline in Asian markets on Monday, falling more than 2% dragged by tech stocks.

Semiconductor manufacturing equipment maker Advantest Inc. was the biggest decliner in the index, dropping 6.32%, according to FactSet. This was followed by peer company Screen Holdings, which fell 5.75%.

Top decliners include SoftBank Group, which fell 5.19%, and Kawasaki Heavy Industries, which fell 4.16%.

As the buzz around artificial intelligence continues to rise, investors are trying to identify the best sectors to profit from.

Ark Invest’s Tasha Keeney is no exception.

Keeney, director of investment analysis and institutional strategy at the asset management firm, predicts that innovation will boost equity market capitalization to $220 trillion by the end of 2010, from $15 trillion to $20 trillion today.

“Most of it…what we’re predicting is actually due to AI,” she said, listing segments and three stocks that would benefit.

CNBC Pro subscribers can read more here.

— Amara Balakrishna

Posted by Japan Fourth quarter GDP growth rate revised value It increased by 0.4% on an annualized basis, avoiding a technical recession.

This comes after previous estimates showed Japan’s economy contracted by an annualized 0.4% in the fourth quarter, after a revised 3.3% in the third quarter, meeting the definition of a technical recession. That’s what it means.

If the GDP figures turn positive, it could pave the way for the Bank of Japan to raise interest rates sooner rather than later.

Read the full text here.

— Lim Huijie

China consumer price index The country’s inflation rate rose by 0.7% in February compared to the same month last year, marking the first time in four months that the country’s inflation rate has increased.

The figure was a marked reversal from the 0.8% drop in January, which also marked China’s highest deflation since September 2009, and also exceeded the 0.3% rise expected by economists polled by Reuters.

Month-on-month, the CPI rose 1%, higher than the 0.7% rise expected in a Reuters poll and compared with January’s 0.3% rise.

Separately, the country’s producer price index fell 2.7% year-on-year, exceeding the 2.5% decline in January.

— Lim Huijie

Jamie Cox, managing partner at Harris Financial, said Friday’s jobs report shows the Fed is indeed accomplishing its so-called dual mission of keeping employment high while controlling inflation. He said there was.

“The labor force is doing well and wage inflation is picking up again. The Fed is taking a knife to that dual mandate,” Cox said. “No one expected this outcome, but it is happening.”

— Alex Harring

Crude oil futures fell for the week as lackluster demand from China collided with a market that the International Energy Agency considers well-supplied.

West Texas Intermediate’s April contract fell 92 cents, or 1.2%, on Friday to settle at $78.01 a barrel. The May Brent contract fell 88 cents, or 1.1%, to settle at $82.08 per barrel.

US crude oil and global crude oil benchmarks fell 2.45% and 1.8%, respectively, for the week.

John Kilduff, founding partner at Again Capital, said: “China’s rapid demand recovery remains a failure. Otherwise, these prices will hold and recover further, pushing WTI back above $80. It will be difficult,” he said. he told CNBC.

— Spencer Kimball

These are the stocks making the biggest moves during midday trading.

• Nvidia — Shares fell nearly 5% as Nvidia took a breather from its winning streak. In early trading, the stock hit a new 52-week high.
• Marvell Technology — The semiconductor company fell more than 10% after a weak first-quarter profit and revenue outlook.
• Costco — Shares fell 7% after the warehouse club reported fiscal second-quarter sales of $58.44 billion, below consensus estimates of $59.16 billion, according to LSEG.

Click here for a complete list of stocks on the move.

— Samantha Subin