Japan sees core inflation at 40-year high as Asia-Pacific stocks rise

Central Bank Governor Felipe Medalla of the Central Bank of the Philippines (BSP) said the economy is expected to see “low growth” of less than 5%, not a recession, next year.

Speaking to CNBC’s Sri Jegarajah in an interview, he said the central bank estimates the economy will grow by 6% next year, which is above the International Monetary Fund’s outlook of 5%.

This outlook could change by around 100 basis points depending on the deterioration of global financial conditions, he added.

The BSP made its second 75 basis point hike of the year on Thursday, taking its benchmark interest rates to 5%.

— Natalie Tham, Jihye Lee

Stocks of Chinese technology companies Tencent and NetEase Hong Kong-listed rose after the companies were granted gaming licenses by China’s National Press and Publication Administration.

Shares of Tencent rose 3% at the open and NetEase more than 5%.

The regulator has issued licenses for some 70 games for November, including Tencent’s Metal Slug: Awakening and NetEase’s A Chinese Odyssey: Homecoming.

NetEase shares plunged more than 11% on Thursday after the company announced that its license with Activision Blizzard would end in January 2023.

—Jihye Lee

Japan’s core consumer price index rose 3.6% in October on an annualized basis, beating expectations for a 3.5% rise and the fastest pace since February 1982.

The index, which excludes fresh food but includes fuel costs, rose 3.0% in September from the same period a year ago.

The latest data marks the seventh consecutive month that the country has seen inflation levels above the Bank of Japan’s 2% target.

—Jihye Lee

As travel to Asia picks up and continues to gain momentum, particularly after China’s recent announcement to reduce quarantine time for international travelers, JPMorgan says it remains bullish on the travel industry of the region.

“Given the strong visibility of forward bookings and the additional upside resulting from the final stage of reopening in parts of the region, we remain positive on the airline and airport sectors in Asia,” he said. he said in a Nov. 11 memo.

CNBC Pro subscribers can click here to learn which stocks investors should watch out for.

— Charmaine Jacob

The Dow Jones Industrial Average closed near the flat line on Thursday despite falling 314 points during the session. The S&P 500 fell 0.31%. The Nasdaq Composite fell 0.35%.

—Sarah Min

Chip stocks, once popular with investors, are doing poorly this year.

But BofA says that despite consumer demand remaining under pressure, “the bullish case for the semis is also compelling.”

Semiconductor sales could rebound in the second half of 2023, BofA predicted.

Here are some themes that the bullet stocks could build on, says the bank, which also chooses which names to buy.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

Keeping inflation under control is the best way to ensure a strong economy for everyone, Federal Reserve Governor Philip Jefferson said Thursday.

“Low inflation is essential to achieving a long and sustained expansion — an economy that works for everyone,” the central bank official said at an event in Minneapolis. “Continuing our dual mandate is the best way for the Federal Reserve to promote widely shared prosperity.”

Jefferson offered no direct comment on the direction he envisions policy as the Fed seeks to achieve both full employment and stable prices.

His comments following a flurry of speeches from his colleagues, who universally say the Fed will have to raise interest rates further to bring down inflation which is still hovering around its highest levels since the early 1980s .

—Jeff Cox

St. Louis Federal Reserve Chairman James Bullard said more tightening may be needed for the central bank to get inflation under control.

He said Thursday that inflation remained at an unacceptably high level, noting the policy was not “tightly enough” at current levels. The Fed has raised rates from zero to a range of 4% to 4.25% this year as US inflation climbs to levels not seen in decades.

“So far, the change in monetary policy stance appears to have had only limited effects on observed inflation, but market prices suggest disinflation is expected in 2023,” Bullard said.

—Fred Imbert