China leads gains in Asia markets with Aussie shares holding near 2-year highs; Japan falls

Home prices in Hong Kong have slumped this year, falling to their lowest since 2017. But analysts say the property market may fair better in 2024.

"Next year will sound better as a result of the potential rate cuts from the U.S. ... market sentiment will improve and then transaction volume will start to pick up in the second half of next year," Marcos Chan, head of research at CBRE Hong Kong told CNBC's "Squawk Box Asia."

Although demand for residential properties in Hong Kong may pick up in 2024, the property market will not see a "very strong V-shaped rebound," Chan added.

If interest rates finally start to come down and the renminbi strengthens in the next 12 to 18 months, he said property prices could tick up a couple percentage points.

Chan also noted that Hong Kong's commercial property market is likely to remain weak, as office vacancy remains high. Hong Kong's office market logged a 15.8% vacancy rate and 13.6 million square feet of vacant space in the third quarter, according to a report by CBRE.

Hereby, Hong Kong's residential properties will probably perform better than commercial land next year, Chan said.

— Quek Jie Ann

Japan's retail sales rose Retail sales rose 5.3% in November, according to government data, beating Reuters poll estimates of a 5% growth.

Japan's November reading was higher than October's retail sales growth of 4.2%, but much lower compared with the year's best monthly growth of 7.2%. seen in March.

The rally in Japan shares cooled off Thursday, with the Topix inching down 0.35% after having risen for four straight sessions.

The Nikkei 225 shed 0.55% after rising more than 1% in the previous session.

— Shreyashi Sanyal

Stocks have rallied, while bonds have had a mixed 2023. As markets bet on rate cuts, Robert Almeida, global investment strategist at MFS Investment Management, has a preference for bonds.

"I believe bonds are more attractive than equities, just because of the risk adjusted return profile – bonds are de-risked whereas the return on equities can be negative, and the volume can be quite high," he told CNBC pro, naming bonds - and stocks he likes.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

The Bank of America released its latest Asia fund manager survey, revealing the most and least favored markets in the region for 2024 — and named one sector "at the helm."

Of the fund managers surveyed, 17% expected the Asia-Pacific economy ex-Japan to be stronger in the next 12 months, with most "still in search of an uptrend." The survey participants comprised 254 people with $691 billion in assets under management.

CNBC Pro subscribers can read more here on the markets - and themes - the fund managers are bullish on for 2024.

— Amala Balakrishner

BTIG's Justin Zelin said AstraZeneca's acquisition of Gracell Biotechnologies, which was announced on Tuesday, was "momentous," as it marked the first time a large multinational pharma company acquired a Chinese biotech firm. He sees the move as "bullish for Chinese biotech companies broadly."

"Despite recent volatility in Chinese biotech stocks, we continue to see promise in the innovation engine for China biotech, especially in cell therapies," he said. Zelin called out buy-rated Legend as an example of a company that could benefit if this becomes a bigger trend.

In midday trading, AstraZeneca shares were up more than 1%, while Gracell shares were flat. Legend shares slipped more than 1%, but the stock has gained 17% year to date.

Most analysts are bullish on Legend stock, with an average upside of 48% predicted, according to LSEG.

—Christina Cheddar Berk

Oil prices pulled back on Wednesday after jumping earlier in the week amid concerns about disruptions to Red Sea shipping from attacks by militants in Yemen.

U.S. crude fell $1.46, or 1.93%, to settle at $74.11 a barrel, while global benchmark Brent declined $1.42, or 1.75%, to settle at $79.65.

The pull back comes after prices jumped more than 2% on Tuesday after Houthi militants claimed responsibility for a missile attack on a container vessel.

Repeated attacks by the militants in the Red Sea have raised concerns that global shipping could be disrupted, potentially impacting oil supplies. Those worries seemed to ease somewhat after Maersk and France's CMA CGM said they would resume shipping.

The U.S. is leading an international task force to protect Red Sea traffic.

— Spencer Kimball

The Federal Reserve may have to shift to more pessimistic language and hold off on lowering interest rates if inflation remains stickier than hoped for, according to Torsten Sløk, chief economist at Apollo Global Management.

"We're simply not done fighting inflation," he said on CNBC's "Money Movers." "And if we're not done fighting inflation, it means that all the negative consequences of fighting inflation — namely higher rates, higher cost of capital — will continue to linger."

Housing could cause stickiness in inflation, Sløk said, complicating the path to 2% price growth for monetary policy makers. He said the market may be "getting ahead of itself" in expect six cuts to interest rates next year, noting he anticipates just three decreases.

And the "pendulum" of commentary from the Fed could swing from dovish to a more hawkish direction, he said.

— Alex Harring

Apple earned a small win in its ongoing patent battle with Masimo on Wednesday, when a U.S. appeals court paused an import ban on the company's smartwatches.

Apple halted sales of its Series 9 and Ultra 2 watches earlier this month in response to an International Trade Commission order that ruled its blood oxygen sensors infringed on intellectual property from the medical technology company.

The iPhone maker filed the appeal to the U.S. Court of Appeals for the Federal Circuit on Tuesday. The ITC has until Jan. 10 to reply to the motion.

Shares were last down 0.5%.

— Kif Leswing, Samantha Subin