Australia rises 25bps as expected, Hong Kong stocks lead gains in Asia-Pacific markets

The Reserve Bank of Australia raised interest rates by 25 basis points to 2.85%, in line with the average analyst forecast in a Reuters poll.

This is the seventh consecutive tightening by the RBA in an effort to control inflation in the country.

The Australian dollar rallied around $0.6440 ahead of the decision and last traded at $0.6429 following the announcement.

At the previous meeting in October, the central bank raised rates by 25 basis points, less than the expected hike of half a point.

—Abigail from

Hong Kong-listed tech stocks led the gains of the broader Hang Seng index, with Meituan gain more than 10% in the morning session.

Tencent gained 8.56%, Ali Baba increased by 7.2% and Xiaomi gained 4.3%. JD.com also increased by 6.06%.

The move comes after Caixin PMI data for factory activity in China came in slightly better than expected, according to Tina Teng, market analyst at CMC Markets.

– Jihye Lee

Mainland China and Hong Kong markets underperformed their Asia-Pacific counterparts in October.

The Hang Seng the index sank to its lowest levels since April 2009 after losing 14.55% at Monday’s close.

Meanwhile, stocks in Australia, Japan and South Korea posted single-digit gains to close the first month of the final quarter of the year, while the Shanghai Composite index fell 4.33% .

Japanese stocks closed at their highest level since Sept. 20, but major APAC indexes were still underwater year-to-date.

—Abigail from

After October’s stock market rally, investors are wondering if stocks have bottomed out or if this is another short-lived rebound.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, is in the latter camp, saying the rally, once again, appears temporary.

He told CNBC what he thinks investors should buy — and short.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

Caixin Manufacturing’s Purchasing Managers’ Index for October showed factory activity contracted for the third consecutive month.

The reading came in at 49.2, against expectations for a print of 49. In September, the manufacturing PMI was at 48.1, below the 50 point mark that separates growth from contraction.

PMI readings compare month-to-month activity.

Official data from the National Bureau of Statistics came in at 49.2 on Monday, missing expectations for a print of 50.

—Abigail from

Hong Kong’s gross domestic product fell 4.5% in the third quarter of the year from the same period a year ago, preliminary estimates from the Census and Statistics Department showed on Monday.

It was the worst contraction since the second quarter of 2020. Analysts polled by Reuters had expected growth of 0.7%, while GDP fell 1.3% in the second quarter.

“The deteriorating external environment and continued disruptions to cross-border inland freight flows have dealt a severe blow to Hong Kong’s exports,” the statement said, adding that the decline in GDP was “mainly attributable to the weak performance of the external demand during the quarter”.

Fixed capital formation, or investment, fell 14.3%, while exports and imports also fell.

—Abigail from

Citi picked a major electric car maker as one of its “best” buy ideas in Chinese stocks.

He expects the automaker’s shares to rise more than 260% over the next 12 months as electric vehicle sales soar.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

South Korea’s trade deficit widened to $6.7 billion for October from a revised figure of $3.78 billion in September, according to data from the customs agency.

Imports rose 9.9% to $59.18 billion from the same period a year ago, while exports fell 5.7% to $52.48 billion.

The latest data shows the biggest decline in exports since August 2020, according to FactSet.

– Jihye Lee

Tesla may be an investor favorite for exposure to the electric vehicle industry, but Citi and HSBC cite two alternatives to meet growing demand for electric vehicles.

Pro subscribers can learn more here.

— Zavier Ong