Asia-Pacific markets are trading lower; China keeps LPR stable

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Malaysian voters lean towards conservatism in weekend polls, analysts say

The absence of a clear winning coalition in Malaysia’s elections this weekend shows that politics in the country is changing, analysts said. While the reforms of the long-ruling Barisan Nasional coalition were once popular, voters, including young people, are turning to more conservative and religious parties.

Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs, told CNBC that the “somewhat reformist image” of the liberal opposition Pakatan Harapan party was a threat to some voters.

“I think it will be extremely difficult for the PH, despite winning the most seats, to form or even join a coalition government,” Oh said.

The historic loss of his seat in Langkawi by former prime minister and longtime statesman Mahathir Mohamad shows that politics in Malaysia is changing, says the lawyer and brother of imprisoned former Prime Minister Najib Razak, Nazir Razak.

“It’s extraordinary. I mean, it’s like saying, you know, people don’t vote for brands. They vote for what you can give them. So I think the politics are changing,” he said. he told CNBC. “Squawk Box Asia” In Monday.

Read the full story here.

— Su-Lin Tan

Malaysia sees ‘sinful’ shares sold off after right-wing party wins more seats

Malaysian coalition party manifestos mention nothing close to fiscal responsibility: analyst

Gambling and drinking stocks in Malaysia sold off on Monday after an Islamist party won more seats than it held ahead of Saturday’s election.

In the past, the Se-Malaysia Islam Party, or PAS, has made it clear that it does not want gambling and alcohol in Malaysia, said Anand Pathmakanthan, head of regional equity research at Maybank Kim Eng.

Gambling-related businesses, such as Magnum shares plunged 8%, while Kindly lost 5.13% and sport toto lose 6.86%. Listed beer companies in Malaysia including Carlsberg fell about 5%, and Heineken decreased by more than 6%.

“Sin sectors remain under threat,” Pathmakanthan said, although he said PAS’s more radical policies may have been watered down.

“What we need now is clarity on how they are going to deal with these sectors in the future, with PAS now having a much bigger say,” he said.

The broader benchmark index fell as much as 1.49% earlier, but was 0.5% lower last time.

—Abigail Ng

Oil prices fall as China faces Covid concerns, Goldman Sachs cuts forecast

Oil prices fell nearly a dollar as China’s Covid worries grew as the nation saw the first virus-related deaths recorded since May This year.

Brent futures lost less than a dollar, or 0.9%, to settle at $86.83 a barrel and United States West Texas Intermediate futures fell 1.09% to $79.21 a barrel.

Goldman Sachs cut its forecast for Brent oil by $10 to $100 a barrel for the fourth quarter of 2022, citing sluggish Chinese demand with growing concerns over Covid and insufficient details of the Group of 7 nations’ latest price cap on Russian oil.

“We believe the market has a right to be concerned about fundamentals going forward,” the economists led by Jeffrey Currie said in the note, adding that the potential for further lockdowns in China equals the latest production cut by OPEC+.

— Lee Ying Shan

Hong Kong movers: Reopening and tech stocks fall as China reports Covid-related deaths

Japanese trading houses rise as Berkshire Hathaway reportedly increases stake

Shares of some Japanese trading houses rose at the start of the Asian session, despite declines in markets in the region, after billionaire Warren Buffett’s Berkshire Hathaway increased its stake in the companies, according to individual regulatory filings.

Berkshire increased its stake by more than a percentage point in Mitsubishi, Mitsui & Co., Itochu, Marubeni and Sumitomo hold more than 6% in each of the companies, according to filings.

Japan-listed shares of Mitsubishi rose 1.89% during the morning session, Marubeni rose 2.12% and Sumitomo rose more than 1%. Itochu also rose 0.84% ​​and Mitsui rose 0.16%.

It comes a few days after Berkshire Hathaway disclosed he increased his holdings of Taiwan Semiconductor Manufacturing Company’s U.S. certificates of deposit, pushing the company’s Taiwan-listed shares up more than 10% in the Asian session.

—Jihye Lee

China keeps prime lending rates unchanged as expected

China left its benchmark lending rate unchanged for a third consecutive month, according to an announcement from the People’s Bank of China.

The one-year loan prime rate is stable at 3.65% and the five-year rate is also suspended at 4.3%, the notice said.

—Abigail Ng

South Korea saw its exports fall further in the first 20 days of November

According Data from the customs agency.

The drop in exports is a sharp decline from the 5.5% plunge seen in October from the same period a year ago.

Imports also fell 5.5% in the first 20 days of November, leading to a slight improvement in the trade deficit — $4.4 billion for the period, compared to a deficit of $4.9 billion. dollars recorded in October.

The country has recorded a total of $40 billion in trade deficit since the start of the year, according to statistics from the agency.

—Jihye Lee

CNBC Pro: Morgan Stanley’s Mike Wilson Predicts S&P 500 Bottom, Calls It ‘Tremendous Buying Opportunity’

Morgan Stanley’s chief U.S. equity strategist, Mike Wilson, says we are in the “final stages” of the bear market, but the situation will remain difficult for some time to come.

It predicts when – and at what level – the S&P 500 will reach a “new low”.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

China expected to keep benchmark lending rates steady, Reuters poll shows

China’s central bank is expected to maintain its prime rates on one-year and five-year loans, according to analysts polled by Reuters.

The one-year rate is currently 3.65% and the five-year LPR is 4.3%.

The People’s Bank of China last cut both rates in August.

China offshore yuan was lower at 7.1376 against the US dollar ahead of Monday morning’s move.

—Abigail Ng

CNBC Pro: Strategist Says Chinese Tech Stocks Like Alibaba Are “Deeply Undervalued”

The 30% decline in the value of Chinese big tech stocks, such as Ali Babamade them “incredibly cheap”, according to investment bank China Renaissance.

Its head of equities, Andrew Maynard, believes not only that the stock market appears to have bottomed, but also that investors could miss a rally if they remain underweight China.

“Without a shadow of a doubt, being underweight in China is going to cost you dearly in the future,” Maynard said.

CNBC Pro subscribers can learn more here.

—Ganesh Rao

Markets are looking for more clues on Fed hikes and the economy in the week ahead

Investors could be a little more cautious in the coming week as stocks look to head for calm trading and bond market warnings of recession grow louder.

The Thanksgiving holiday Thursday should mean markets are likely to be quiet Wednesday and Friday. Merchants will monitor Black Friday holiday shopping reports for consumer feedback.

“This really is a week where data addiction is the key word,” said Julian Emanuel, senior managing director of Evercore ISI. “The bias [for stocks] is higher unless the data continues to deteriorate and the Fed remains on its hawkish bias…which has clearly strengthened over the past 48 hours.”

Check out our full in-depth dive on what to expect in the week ahead here.

—Patti Domm, Tanaya Macheel