Japan reportedly nominates Ueda as next central bank chief; Asia markets mixed

Japanese conglomerate Toshiba cut its operating income forecasts after it recorded a loss in its third quarter, trimming its full year operating income estimates from 120 billion yen ($909.7 million) to 95 million yen.

The company reported a 16.6 billion yen net loss for its third quarter from October to December 2022, a reversal from the 55.12 billion yen in net profit recorded in the same period a year ago.

Toshiba also announced the resignation of its chief operating officer Goro Yanase  over "inappropriate behavior" regarding his use of entertainment expenses. However, Yanase will still remain as a director of the company.

Last week, Toshiba received an acquisition bid from investment fund Japan Industrial Partners.

Nikkei reported that JIP expects to spend about 2 trillion yen on the acquisition, excluding Toshiba's post-acquisition working capital. 

—Lim Hui Jie

Shares of Singapore companies traded mixed on Tuesday ahead of the country's budget release in the afternoon.

The benchmark Straits Times Index was down 0.19%, erasing earlier gains in the morning session.

Integrated resort development company Genting Singapore was the top gainer on the STI, having gained 2%, while airline ground handler and food ca­tering services provider SATS led the losses as it slid 6.33%.

The budget is expected to focus on inflation and the cost of living, as well as more support for vulnerable and lower income groups.

– Lim Hui Jie

India's inflation rose to 6.52% in January and higher than December 2022's figure of 5.72%, according to official data.

It came in higher than economists estimates of 5.9% and is also above the 6.01% recorded a year ago.

India's national statistical office said rural inflation for January came in at 6.85%, while urban inflation was lower at 6%, in a release.

The Indian rupee strengthened nearly 0.2% and traded at 82.580 against the U.S. dollar after the announcement.

—Lim Hui Jie

U.S. President Joe Biden will name Federal Reserve vice chair Lael Brainard as his top economic advisor as early as Tuesday, Bloomberg reported, citing people familiar with the matter.

Brainard would replace director of the National Economic Council Brian Deese, according to the report.

Council of Economic Advisers member Jared Bernstein is considered likely to be named as the chair, replacing outgoing chairwoman Cecilia Rouse.

CNBC previously reported the appointments are expected to be announced after incoming White House Chief of Staff Jeff Zients assumes his role.

– Jihye Lee

The Japanese government nominated Kazuo Ueda for its next Bank of Governor, Reuters reported, citing documents that the government submitted to parliament.

The government also nominated Ryozo Himino and Shinichi Uchida for the deputy governor roles, the report said.

The Japanese yen was little changed following the reported nomination, and last traded at 0.2% stronger levels at 132.15 against the U.S. dollar.

– Jihye Lee

Japan's economy expanded by 0.6% on an annualized basis for the fourth quarter of 2022, lower than expectations to see a growth of 2% in a Reuters poll.

The figure was a rebound from a revised contraction of 1% seen in the third quarter of 2022 compared to a year ago.

Private consumption rose 2% in the fourth quarter on an annualized basis, while government demand climbed 1.3% in the same period.

—Lim Hui Jie

Yields are popping again.

"Markets are coming round to the threat that the Fed will maintain a 'higher for longer' stance if sequential pick-up in prices, despite the continued moderation in [year-on-year] inflation, is pronounced," Vishnu Varathan, head of economics and strategy at Mizuho Bank, said Monday. He added there was also the threat of hot jobs data for January.

"This could underpin the run-up in UST yields, alongside a Greenback that is discernibly more buoyant (than it has been late-Jan into start-Feb); whilst continuing to dampen, if not drag, equities," he added.

How can investors ride on higher yields? Here's what the pros say.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Investors have been flocking back into Chinese tech stocks amid China's reopening and an easing of regulatory headwinds.

Morgan Stanley has doubled down on its "buy" call on one Chinese tech giant, and raised its price target on the stock. Its bullishness comes hot on the heels on a similar call by Goldman Sachs.

Pro subscribers can read more here.

— Zavier Ong

Stocks climbed Monday as traders looked ahead to Tuesday's key inflation report, regaining their footing after the S&P 500 and Nasdaq Composite suffered their worst weekly declines in nearly two months.

The Dow Jones Industrial Average traded 377 points higher, or 1.11%, to close at 34,246.32 its best daily performance in February. The S&P 500 climbed 1.15% to close at 4,137.40 and the Nasdaq Composite advanced 1.48% to 11,891.67.

—Carmen Reinicke

With 80% of the S&P 500's market cap having already reported earnings, Credit Suisse is forecasting overall fourth-quarter EPS estimates to have contracted by 2.2% as a result of margin weakness.

EPS estimates have dropped 1.7% since the fourth quarter ended on Dec. 31. The firm said that on average, earnings estimates increase by 2.8% following the end of the quarter. 

"This is the largest decline in 24 years, outside of the 2001 recession, the financial crisis, and the initial pandemic quarter," Credit Suisse's Chief U.S. Equity Strategist Jonathan Golub wrote in a note to clients on Monday. The firm said EPS growth is also expected to decline in the first quarter of 2023.

— Pia Singh

Federal Reserve Governor Michelle Bowman expects interest rates to continue to rise until the central bank makes more progress against inflation.

In a speech Monday morning, Bowman did not provide a specific forecast for rates. But she indicated that there's more work to be done, following eight increases since March 2022.

"We are still far from achieving price stability, and I expect that it will be necessary to further tighten monetary policy to bring inflation down toward our goal," she said in remarks before the American Banking Conference in Orlando, Fla.

"While there are costs and risks to tightening monetary policy to lower inflation, I see the costs and risks of allowing inflation to persist as far greater," she said.

Bowman also spoke on banking regulation, saying she does not think it's the Fed's place to direct institutions on which sectors where they should be allowed to lend. Congressional Democrats have pushed the Fed to discourage lending to fossil fuel companies.

—Jeff Cox