Hong Kong stocks led losses in a negative Asia-Pacific session on Monday amid unrest in China over its continued zero-Covid policy. Oil futures hovered around new 2022 lows as demand concerns from the world's second-largest consumer of oil weighed on prices.
The Hang Seng index in Hong Kong fell 1.63% in the final hour of trade, paring some of the losses after shedding 4% at the open. The Hang Seng Tech index fell 2.07%. In mainland China, the Shanghai Composite fell 0.75% to 3,078.55 and the Shenzhen Component also fell 0.69% to 10,829.08.
The offshore yuan weakened sharply against the dollar after ending last week around 7.20 per dollar. Futures of West Texas Intermediate crude, the U.S. benchmark for oil, dipped around 3% to the lowest levels since Dec. 2021.
The People's Bank of China over the weekend announced to cut the reserve requirement ratio for banks by 25 basis points to 7.8% and inject around 500 billion yuan in long-term liquidity. The National Bureau of Statistics said industrial profits fell 3% for the first 10 months of the year on an annualized basis.
In Australia, the S&P/ASX 200 fell 0.42% to 7,229.10 as retail sales slipped 0.2% in October from the month before. The Nikkei 225 shed 0.42% to 28,162.83, and the Topix lost 0.68% to 2,004.31. The Kospi in South Korea declined 1.21% to 2,408.27.
India stocks reach historic high levels
Indian stocks reached new highs in Monday's session.
The Nifty 50 index, the flagship index on the National Stock Exchange of India, touched 18,611.05, breaching the previous intraday all-time high level of 18,604.45 seen on Oct. 19, 2021.
The Sensex hit 62,690.39 in India's morning session, also exceeding the previous all-time high levels of 62,447.73 seen on Nov. 25 this year.
Proposed EU cap on Russian oil won't be lowered by Poland, Baltic States: CBA
The European Union's proposed cap on the price of Russian oil will likely not be lowered due to Poland and the Baltic States' dissent, according to Commonwealth Bank of Australia.
The two countries have objected the proposal claims, saying that the current proposal is too generous and too close to the current price that Russia gets on the market.
Vivek Dhar, CBA's Director of Mining and Energy Commodities research, questioned the feasibility of reflecting the opposition of the more hawkish member states of the EU.
"Now we know that Poland and the Baltic states are disagreeing heavily with how high that price cap is. But realistically speaking, are we going to see that price lower because of their dissent?" he said on CNBC's "Street Signs Asia."
— Lee Ying Shan
'Not at all' easy to shift production of Apple's latest Pro iPhones from China's Zhengzhou: Analyst
It is "not at all" easy to shift production of Apple's latest Pro iPhones away from the Zhengzhou factory where a workers' revolt against China's zero-Covid policy hurt supply chains, Martin Yang, senior analyst of emerging technologies of investment firm Oppenheimer told CNBC's "Street Signs Asia."
"The iPhone 14 Pro and Pro Max stay exclusively produced in Zhengzhou," he said, while noting that some of the production of the lower end phones such as the iPhone 13 and iPhone 14 was shifted to factories in China's Shenzhen and India.
"That suggests to me that the higher-end iPhones have a different set of production processes, which is not very easy to be transferred elsewhere. And oftentimes that refers to very custom equipment and a trained workforce that are not readily available elsewhere," said Yang.
However, he said he has "high confidence" that customers will not switch over to competitor Samsung because of Apple's "competitive advantage."
The iPhones' perceived value over Android phones have grown because Apple is able to secure higher-end parts with lower costs while anyone else is squeezed by margins, he said.
— Sheila Chiang
Casetify poised to be Hong Kong's next unicorn, valuation 'close to a billion,' says CEO
Hong Kong-headquartered Casetify is now "close to a billion" in valuation, its co-founder and CEO Wesley Ng told CNBC Make It.
This is after its first round of fundraising in 2021 after 10 years of operations — where the tech accessory company reportedly raked in "eight figures" from C Capital.
"We did not overly invest in things in exchange for unnecessary growth. So very fortunately, we are healthy but we remain very cautious."
Read more about Ng's multimillion-dollar company and his business tips here.
— Goh Chiew Tong
There is a 30% probability that China reopens earlier than expected: Goldman Sachs
China is most likely to reopen around April next year after the National People's Congress takes place, but there's a chance that authorities reopen earlier due to difficulties in keeping Covid cases under control, according to Goldman Sachs.
Chief China Economist Hui Shan said there's a 60% chance of the former scenario taking place.
"There is also a 30% probability of earlier reopening precisely because of the difficulty in keeping Covid under control, and the lack of medical preparation suggests it could be quite a messy process," she said.
"Medical preparation is not ready yet, whereas the virus has evolved in such a way [that] it's getting very costly to continue to implement that dynamic zero-Covid policy," she said.
She said that policymakers need to weigh out the costs and benefits of the stringent Covid restrictions as protests take place across the country.
"This is not something they had experienced before [or] had a lot of experience in dealing with in prior cycles," she said.
— Su-Lin Tan