Adani shares close higher after brief 35% plunge on Hindenburg jitters; Asia stocks mixed
This is CNBC's live blog covering Asia-Pacific markets.
Stocks in the Asia-Pacific traded mixed on Friday as shares of Adani Enterprises briefly plunged, following a sell-off triggered by allegations raised by short seller firm Hindenburg.
The Nifty 50 in Mumbai closed up 1.3% as shares of some Adani companies rallied after a brief plunge earlier in the session.
Shares for Adani Enterprises closed up 1.38% after being down 35% at one point during Friday's session. Adani Ports closed up 7.8%.
Hong Kong's Hang Seng index fell 1.2% in its final hour of trade. In mainland China, the Shanghai Composite fell 0.66% and the Shenzhen Component lost 0.63% as the Caixin purchasing managers' index showed services activity in China picked up in January.
The Nikkei 225 in Japan rose 0.39% and the Topix traded 0.26% higher as the au Jibun Bank Japan Services Purchasing Managers' Index for January marked further growth for the month.
In South Korea, the Kospi also rose 0.47% to 2,480.4 and the Kosdaq gained 0.28% 766.79.
In Australia, the S&P/ASX 200 rose 0.62% to 7,558.1 as investors digest new housing loan commitments for December that fell 4.3%.
Overnight in the U.S., major indexes on Wall Street saw a rally driven by technology stocks. Meta surged 23%, marking its best day since 2013 after seeing a better-than-expected earnings report.
TotalEnergies says it has limited exposure to Adani Group companies
French oil major TotalEnergies said its exposure from stakes in Adani Group's companies is limited, representing 2.4% ($3.1 billion as of Dec. 31) of the firm's capital employed and $180 million of net operating income last year.
TotalEnergies has made joint investments in India in partnership with Adani Group since 2018.
Shares of Adani Group companies have plummeted following a critical report from U.S. short seller Hindenburg last week.
— Sam Meredith
Life Insurance Corporation of India has not sold any Adani shares: CNBC-TV18
Life Insurance Corporation of India has not sold any Adani Group shares that it holds, reported CNBC-TV18, an affiliate of CNBC, citing people familiar with the matter.
LIC will schedule a call next week with Adani Group's management to understand the conglomerate's strategy going forward, CNBC-TV18 reported.
India's largest life insurance company added that it is a long-term investor and will continue to follow its investment strategy.
Refinitiv data shows LIC holds a 5.96% stake of Adani Total Gas, 4.23% of Adani Enterprises, 9.14% of Adani Ports and Special Economic Zone, and 3.65% of Adani Transmission, according to a Dec. 31, 2022 filing.
— Jihye Lee
Hong Kong will give away half a million plane tickets: Tourism board
Hong Kong's new global promotional campaign will "kickstart" the city's reopening to international travelers, the Hong Kong Tourism Board told CNBC's "Squawk Box Asia" on Friday.
″We are the last one but we are very clearly reopened with no restrictions," said Dane Cheng, the tourism board's executive director — even though all international travelers are still required to test negative in a pre-departure test.
As part of the "Hello Hong Kong" campaign, which was launched on Thursday, 500,000 air tickets will be given away over the next six months, starting in March.
While the rest of the world steadily moved to reopen early last year, it was only in late 2022 that Hong Kong began to relax some of its restrictions.
"I think it's very clear that the Hong Kong government … has been very prudent and they [made] it very clear that everything wants to be resumed in an orderly and progressive manner," said he added.
Read the full story here.
— Goh Chiew Tong
Adani Enterprises to be removed from Dow Jones sustainability indices
Adani Enterprises will be removed from the Dow Jones Sustainability Indices, effective Feb. 7, S&P said in an announcement.
"Adani Enterprises will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud," it said in a one-line notice.
Adani Enterprises was added to the Dow Jones Sustainability Emerging Markets Index as of Dec. 19, 2022, according to a list of components on S&P Global's website.
Adani did not respond to CNBC's request for comment. Shares traded 30% lower during Mumbai's trading session on Friday.
— Jihye Lee
Hong Kong, Macao to fully reopen borders with mainland China
Travel between mainland China and Hong Kong as well as Macao will fully resume on Feb. 6, China's Hong Kong and Macao Affairs Office of the State Council said in an announcement.
The release said mandatory tests for most travelers will be dropped, and group tours between the regions will also resume.
The latest measures come after China scrapped its quarantine measures for international travelers and reopened its borders on Jan. 8, in an essential end to its zero-Covid policy.
— Jihye Lee
China's services activity rebounds in January: Caixin PMI
China's service sector showed a rebound in the first month of 2023, according to the Caixin/S&P Global services purchasing managers' index (PMI).
The reading rose to 52.9 in January, above the 50-mark that separates growth from contraction — from the business activity index of 48 seen in December.
Overall new business increased for the first time in five months, the release said, adding that a rise in new work was supported by higher customer numbers alongside the lifting of Covid restrictions in the nation.
Business confidence also improved to the highest level since February 2011, the release said.
"Although Covid infections remained high, an easing of related containment measures stimulated supply and demand in the sector," Wang Zhe, senior economist at Caixin Insight Group said.
"Lifted travel restrictions also boosted services exports, with the reading for new export orders climbing into expansionary territory."
— Jihye Lee
CNBC Pro: Hedge fund manager Dan Niles explains why he's so bearish — and when he sees markets shifting lower
Hedge fund manager Dan Niles says there's an "unfortunate realization" on the horizon for investors, with stock markets set to fall.
He explains why he's so bearish — and when he expects the shift lower to happen.
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— Ganesh Rao
CNBC Pro: Buy this Chinese tech giant to play a $284 billion video gaming opportunity: Goldman Sachs
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— Zavier Ong
Hong Kong's private sector returns to growth: PMI
The Hong Kong economy's private sector returned to growth in January, the S&P Global purchasing manager's index showed.
The reading came in at 51.2, marking the first print above the 50-mark that separates growth from contraction since August 2022.
The economy's business confidence also hit a record high, S&P said in its release.
"Demand for Hong Kong SAR goods and services notably saw a renewed increase, boosting stronger business activity expansion, input acquisition and hiring within the private sector," said Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence.
"The surge in business confidence to a survey record high further outlined the expectation for better near-term performance," Pan said.
— Jihye Lee
Japan's service sector continues expansion, private survey shows
The au Jibun Bank Japan services purchasing managers' index came in at 52.3 for the month of January, ticking higher than the previous reading of 51.1 seen in December.
A PMI reading above 50 indicates expansion, while a lower number signals contraction.
The latest report showed faster rises in activity and new orders as the nation sees a continued recovery post-Covid in January.
The rate of input cost inflation quickened for the second straight month in January and remains among the steepest on record, it said in its release.
Elevated levels of inflation could indicate less optimism for Japan's economy, it said.
"Cost pressures also remained elevated, largely due to higher fuel costs — These developments, and the limit they may place on growth, meant that companies were slightly less bullish about the outlook than they have been recently," Andrew Harker, economics director at S&P Global Market Intelligence said.
— Jihye Lee
Jobless claims come in lighter than expected
The number of first-time filers for unemployment benefits was smaller than expected, according to U.S. government data. Initial weekly jobless claims came in at 183,000, while economists polled by Dow Jones expected a print of 195,000. The data comes a day before the Labor Department releases its monthly nonfarm report, which is expected to show the economy added 187,000 jobs in January.
— Fred Imbert
Meta earnings show the company is getting back on footing, Munster says
Meta's shares are up more than 19% in after hours trading after the company's earnings beat Wall Street expectations on revenue and included an announcement of a $40 billion stock buyback. The company also gave a guidance for its first quarter that signaled revenue could rise on the year.
The solid quarterly performance was a surprise for Gene Munster of Deepwater Management, but signal's that the Facebook parent is getting back on track, he said on CNBC's "Fast Money."
"The results essentially put investors at ease, and what investors need to know is that Facebook Meta is getting back on their footing," Munster said.
He said the company showed solid daily average users especially in key markets, which is a good thing.
"This allows investors to look at the path forward here," Munster said. He added that the top concerns outlined at the top of the earnings call show that the company is refocusing on what it needs to do to grow.
S&P 500 closes higher Thursday
The S&P 500 closed higher Thursday after rising to its best level in five months. The broader market index jumped 1.47%, while the tech-heavy Nasdaq Composite advanced 3.25%.
Meanwhile, the Dow Jones Industrial Average underperformed, falling 39.02 points, or 0.11%.
— Sarah Min