China stocks recover in mixed Asia trade; yen weakens past 146

This is CNBC's live blog covering Asia-Pacific markets.

An investor watches a computer screen displaying the Shanghai Composite Index at a stock exchange hall on October 9, 2020 in Fuyang, Anhui Province of China.
Lu Qijian | Visual China Group | Getty Images

Asia-Pacific markets were mixed on Wednesday, with some indexes struggling for direction amid concerns over the global economy. Investors are also waiting for inflation data from the U.S. due later this week.

The Shanghai Composite in mainland China rose 1.53% to end the session at 3,025.51, and the Shenzhen Component gained 2.464% to close at 10,838.48. Both indexes earlier lost more than 1.5% each.

Hong Kong's Hang Seng index recovered but was 0.56% lower in the final hour of trade, while the Hang Seng Tech index was up 0.11%.

In Japan, the Nikkei 225 closed fractionally lower at 26,396.83 and Topix lost 0.12% to 1,869. Japan's yen was hovering around 146 against the dollar. The S&P/ASX 200 in Australia 0.04% higher at 6,647.50.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.1% higher. South Korea's Kospi gained 0.47% to 2,202.47 and the Kosdaq was higher by 0.32% to 671.67.

South Korea's central bank raised interest rates by 50 basis points to 3% on Wednesday, in line with expectations. The Korean won strengthened and last changed hands at 1,424.71 per dollar.

Overnight on Wall Street, the S&P 500 shed 0.65% to close at 3,588.84 after hitting a multiyear low during the session. The Nasdaq Composite dropped 1.10% to 10,426.19, its lowest close since July 2020. The Dow Jones Industrial Average ticked up 36.31 points, or 0.12%, to close at 29,239.19.

— CNBC's Carmen Reinicke and Sarah Min contributed to this report.

CNBC Pro: Market veteran says ‘there’s always going to be short term pain’ – and reveals the stocks he loves

As most investors flee growth names amid mounting concerns over higher interest rates and an impending recession, according to Mizuho Americas' Farzin Azarm.

"When there's blood on the streets, that's when you want to be out there buying," he said.

"There's always going to be short term pain — that's the way it works," he added.

Azarm is staying bullish on growth stocks, and names three that he loves.

Pro subscribers can read more here.

— Zavier Ong

The Bank of Korea may allow a wider rate differential with the Fed: Goldman Sachs

We expect the Bank of Korea will allow a wider rate differential with the Fed, says Goldman Sachs
Bank of Korea may allow a wider rate differential with the Fed: Goldman Sachs

Concerns over high inflation and the aggressive tightening by the U.S. Federal Reserve drove South Korea's central bank to raise interest rates at its October meeting, said Goldman Sachs Economist Goohoon Kwon.

Moving forward, however, the Bank of Korea may let interest rates further lag rates in the U.S., Kwon said.

That's because of "relatively better prospects for disinflation" and slowing economic growth in South Korea, he added.

"We expect them to allow a bit of a wider differential with the Fed rate toward end of the Fed tightening cycle," he told CNBC's "Squawk Box Asia."

— Abigail Ng

CNBC Pro: It's too early to buy the dip, investor says, naming 8 stocks to buy when the time is right

One fund manager is cautioning against buying the dip, despite a 25% decline in the S&P 500 this year.

Instead, investors should be repositioning toward stocks sensitive to interest rates, John Ricciardi, head of asset allocation and a fund manager at Deuterium Capital, said.

He names three stocks in the consumer staples sectors, three in utilities, and two in materials for investors to scoop up when the time is right.

CNBC Pro subscribers can read more here.

Loading chart...

— Ganesh Rao

New bank loans in China soared in September, data shows

Banks in China extended 2.47 trillion yuan ($344 billion) of new loans in September, compared with 1.25 trillion yuan in August, the country's central bank said in a statement late Tuesday.

That comes after the People's Bank of China's efforts to boost credit by lowering interest rates this year.

Analysts polled by Reuters expected new loans to come in at 1.8 trillion yuan.

— Abigail Ng

South Korea's central bank raises rates by 50 basis points

The Bank of Korea raised its policy rate to 3%, an increase of 50 basis points in line with expectations, as the central bank tries to keep inflation under control and limit the plunge in the Korean won.

Interest rate differentials have boosted the dollar this year, and the won has fallen around 20% against the greenback since the start of the year.

Inflation in South Korea stood at 5.6% in September, above the central bank's target.

— Abigail Ng

Japan's yen weakens to fresh 24-year low

The Japanese yen weakened past the level where authorities previously intervened to mark a new 24-year low in Asia's morning trade.

The U.S. dollar bought as much as 146.22 yen at one point, but then retreated to 146.08.

Officials in Japan intervened in the foreign exchange market in September when the dollar-yen hit 145.9.

— Abigail Ng

Correction: This post has been updated to accurately reflect that the yen was at a new 24-year low.

CNBC Pro: This stock is a better bet than even U.S. Treasurys, fund manager says

Nick Griffin, chief investment officer at Munro Partners, is so bullish on one stock, he says it's a better bet than U.S. Treasurys.      

"It's cheaper than a U.S. Treasury. It grows faster than the U.S. Treasury, and it's probably got a better balance sheet than the U.S. Treasury. So from our point of view, it's a fairly safe place to [put your] cash," he said. Short-term U.S. Treasurys have surged in popularity among investors of late as yields pop.

CNBC Pro subscribers can read more here.

— Weizhen Tan

U.S. economy is doing well amid economic uncertainty, says Treasury Secretary Yellen

Treasury Secretary Janet Yellen said the U.S. is "doing very well" amid global economic uncertainty.

Although the U.S. economy has slowed after a strong recovery, jobs reports indicate a resilient economy, she said in an interview Tuesday with CNBC's Sara Eisen.

She also acknowledged that inflation is too high and that lowering it is a priority for the Biden administration, and emphasized the importance of maintaining a healthy labor market while doing so.

— Chelsey Cox, Tanaya Macheel

IMF cuts global growth forecast for next year

The International Monetary Fund on Tuesday cut its global growth forecast for next year to 2.7%.

The prediction is 0.2 percentage points lower than its July forecast, and suggests that 2023 will feel like a recession for millions around the world.

– Karen Gilchrist