Asia-Pacific stocks mixed as China’s factory and service businesses contract

Goldman Sachs economists expect the Federal Reserve Funds Rate to peak at 5%, after raising its central bank rate hike forecast by 75 basis points at the next meeting this week.

Economists led by Jan Hatzius said in a Saturday note they were adding another 25 basis points to their forecast – now calling for a 50 basis point hike in December, a 25 basis point hike in February and a another 25 basis point increase in March.

“Inflation is expected to remain uncomfortably elevated for some time, which could make continued upside in small increments the path of least resistance,” the note said.

— Jihye Lee

Hong Kong-listed Macau gambling shares fell sharply in early trading after a worker at MGM ChinaThe Cotai casino has tested positive for Covid, according to a government advisory.

Several areas linked to the case have been placed on lockdown, according to another notice, with the measures due to be lifted between November 3 and 5.

MGM China shares fell 2.89%, Wynn Macau slipped 2.62%, Galaxy Entertainment shares fell 1.85%. Sands China stocks also lost 2.29%. SJM Holdings also fell more than 3%.

Chinese factory activity declined in October from September, according to data from the National Bureau of Statistics.

The official print for the manufacturing purchasing managers’ index came in at 49.2, missing expectations for a reading of 50 – the mark that separates monthly growth from contraction.

In September, the PMI index stood at 50.1.

China’s official non-manufacturing PMI came in at 48.7, down from 50.6 in September.

—Abigail from

Japan’s industrial production fell 1.6% in September from August, government data shows — falling more than expected from a 1% decline in a Reuters poll and ending a three-month growth streak.

The decline was led by motor vehicles, chemicals and production machinery, the statement said.

A government survey forecasting industrial production figures predicts a decline in October, while seeing an increase in November.

—Jihye Lee

Stocks around the world have sold off this year on fears of recession and soaring inflation – and now look cheap.

Analysts say there could be buying opportunities on some stocks that they expect to see a rally.

To find these stocks, CNBC Pro selected names under the MSCI World Index that met a number of criteria.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

from Japan yen weakened beyond 148 levels against the US dollar in morning trade in Asia for the first time since last Wednesday.

The moves come ahead of the Fed’s policy meeting this week, where the central bank is expected to raise rates by 75 basis points, further widening the rate differential between the United States and Japan.

The Japanese yen saw some strengthening to 146 last week ahead of the Bank of Japan’s monetary decision to hold rates steady, before falling back towards 148 against the greenback.

It last stood at 148.23 to the dollar.

—Abigail from

China’s official purchasing managers’ index for October is expected to be roughly flat from September, according to a Reuters poll.

The reading should come in at 50, the point that separates growth from contraction. PMI prints compare month-to-month activity.

In September, the economy hit a PMI of 50.1.

—Abigail from

Wall Street will be closely watching the Federal Reserve’s statement this week for signs that the central bank will slow its pace of rate hikes.

According to CME tool FedWatch, traders estimate there is an 80% chance the Fed will hike rates by three-quarters of a point on Wednesday.

This would bring the central bank’s target range to 3.75% to 4%.

Beyond that, however, the market looks more uncertain. There is only a 44% chance of another rise of this size in December.

—Jesse Pound