Nikkei touches new three decade highs as Asia markets rise; oil surges on OPEC+ cuts

Jihye Lee
Lim Hui Jie

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

Consumers enjoy themselves at Nanjing Road Pedestrian Street, the busiest commercial tourist landmark in Shanghai, China, May 5, 2023.

Asia-Pacific markets are largely higher after U.S. President Joe Biden signed into law a debt ceiling bill that allowed the U.S. to avert defaulting on its financial obligations over the weekend.

The compromise debt ceiling bill passed the Senate by a 63-36 margin Thursday evening, winning enough support from both parties to overcome the chamber's 60-vote threshold to avoid a filibuster. On Wednesday, it moved through the House after about 72 hours, passing 314-117.

In Japan, the Nikkei 225 surged 2.2% above the 32,000 mark for the first time since 1990 to close at 32,217.43. The Topix was 1.7% higher and closed at 2,219.97.

Oil futures also surged as the Organization of the Petroleum Exporting Countries (OPEC) kingpin Saudi Arabia's decision to cut oil production by another million barrels per day.

.N225Nikkei 225 IndexNIKKEI33,408.39-39.28-0.12%
.HSIHang Seng IndexHSI17,354.14-170.92-0.98%
.FTFCNBCACNBC 100 ASIA IDXCNBC 1008,459.71+58.83+0.70%

South Korea Kospi inched up 0.54%, ending the day at 2,615.41 and extending its Friday rally. The Kosdaq gained 0.26% to finish at 870.28.

Australia's S&P/ASX 200 was up 1%, ending at 7,216.3 and recording its third straight day of gains, ahead of the country's central bank rate decision tomorrow.

Hong Kong's Hang Seng index saw a 0.88% gain on Monday, extending its rally from the 4% gain recorded in Friday's session. Mainland China markets were more mixed, with the Shanghai Composite up marginally to end at 3,232.44 and the Shenzhen Component declining 0.48% to end at 10,946.08.

In the U.S. on Friday, all three major indexes gained over 1%, with the Dow Jones Industrial Average jumping 2.12% for its best day since January.

The S&P 500 climbed 1.45%, while the Nasdaq Composite advanced 1.07%, reaching its highest level since April 2022 during the session.

— CNBC's Samantha Subin and Alex Harring contributed to this report

Mon, Jun 5 2023 3:07 AM EDT

Singapore retail sales growth slow to 3.6% in April

Singapore's retail sales grew 3.6% year-on-year in April, slightly lower than the 4.5% recorded in March.

The country's statistics department said excluding motor vehicles, retail sales in April grew by 4.2%, higher than the 4% increase in March.

Sales of food and alcohol rose led retail sales for April, with the sector seeing a 30.5% increase in sales compared to the same period last year.

The estimated total retail sales value in April 2023 was 3.9 billion Singapore dollars ($2.89 billion), with online sales making up 12% of the figure in May.

— Lim Hui Jie

Mon, Jun 5 2023 2:01 AM EDT

India services sector sees strong growth, but also increasing inflation pressures

India's services sector saw its second fastest pace of growth since July 2010, according to a private survey by S&P Global.

The country's services purchasing managers index came in at 61.2, down from the 62.0 recorded in April.

S&P said in a Monday release, India's "robust economic performance" for the service sector was supported by "sustained growth of new business in the face of positive demand trends."

This growth was coupled with higher inflationary pressures, S&P observed, "as evidenced by stronger increases in both input costs and output charges."

"Faced with the delicate task of balancing these increases and maintaining affordable prices for consumers, firms opted to lift selling prices again in May," said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

"Worryingly, the survey showed the joint-fastest upturn in output charges for nearly six years," she noted.

— Lim Hui Jie

Sun, Jun 4 2023 10:46 PM EDT

Hong Kong's China mainland property stocks fall 3% at open

Hong Kong's Hang Seng Mainland Properties index (HSMPI) fell 3% at the open and last traded 2.5% lower as markets corrected the rally from speculations that Chinese policymakers will roll out stimulus to boost the industry.

The HSMPI was down nearly 30% year-to-date and fell 20% quarter-to-date. Over a one-year period, the index fell 53.03%, according to Refinitiv data.

Real estate stocks were among the major decliners in the wider Hang Seng index alongside basic materials stocks on Monday morning's trade.

Industrials stocks were the leading sector for the index, alongside utilities, financials, and technology.

— Jihye Lee

Sun, Jun 4 2023 10:03 PM EDT

China's Caixin services purchasing mangers' index climbs to 57.1 in May

China's private Caixin Services purchasing managers' index (PMI) reached 57.1 in May, inching higher to the second-highest rate since November 2020.

The reading saw a recent peak of 57.8 in March, rebounding from a recent low of 46.7 in November as the economy emerged from China's stringent Covid restrictions.

The upturn coincided with a steeper increase in total new orders and sustained rise in new export business amid reports of stronger market conditions and increased customer turnout, Caixin said in a Monday release.

May's services PMI marked the fifth consecutive month of an expansionary reading above the 50-mark that separates growth and contraction, as services remain a bright spot in China's uneven economic recovery.

"Service providers remained optimistic partly because the market environment improved in the post-Covid era," Wang Zhe, Senior Economist at Caixin Insight Group said.

— Jihye Lee

Sun, Jun 4 2023 9:57 PM EDT

Australia expected to leave rates unchanged in Tuesday meeting

The Reserve Bank of Australia is expected to hold its benchmark interest rate at 3.85%, according to a poll of 32 economists by Reuters.

21 of the 32 surveyed expect the RBA to hold rates, while 11 forecast a 25 basis points hike to 4.1%.

The RBA raised rates last month after pausing in April, surprising investors and economists who were expecting the central bank to hold.

The country's inflation rate for April came in at a faster pace of 6.8%, compared with 6.3% in the previous month and market forecasts of 6.4%.

— Lim Hui Jie

Sun, Jun 4 2023 9:23 PM EDT

Hong Kong private sector expansion slows in May as reopening momentum wanes

In May, Hong Kong's private sector expanded at its slowest rate this year, according to a private survey by S&P Global. The city's composite purchasing managers' index fell to 50.6 in May from 52.4 in April.

The PMI index encompasses services and manufacturing, and is seen as a reliable gauge of economic health. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

S&P Global said the recent boost to growth in Hong Kong, from the full resumption of travel between the city and mainland China, "was beginning to wane."

The survey pointed at signs — such as lower new sales, slower new order growth and higher input cost inflation — putting pressure on firms' margins.

— Lim Hui Jie

Sun, Jun 4 2023 9:05 PM EDT

Japan's services sector activity expands at record pace in May

Japan's service sector saw a record rate of expansion in May, according to private surveys by au Jibun bank.

The country's services purchasing managers' index came in at 55.9, surpassing the previous record of 55.4 set last month and extending its streak to six straight months of quickening expansion.

The bank wrote that "anecdotal evidence suggested that the increase in customer demand was sustained as the impacts of the Covid-19 pandemic continued to wane."

It also added that firms' outlook for business activity remained "strongly optimistic," with "particular emphasis placed on the strength of the tourism sector."

— Lim Hui Jie

Sun, Jun 4 2023 9:01 PM EDT

Oil prices jump more than 2% after Saudi Arabia pledges more production cuts

Oil prices rose after OPEC kingpin Saudi Arabia decided to cut production by another million barrels per day.

Global benchmark Brent futures were up 2.4% at $78 a barrel Monday during early Asia trade, while U.S. West Texas Intermediate futures rose 2.5% to $73.53 per barrel.

"The market did not widely expect the Saudi decision to cut production by 1 million barrels per day unilaterally," president of Rapidan Energy Bob McNally told CNBC in an e-mail following the decision.

"It once again demonstrated that Saudi Arabia is willing to act unilaterally to stabilize oil prices," McNally said.

—Lee Ying Shan

Sun, Jun 4 2023 9:01 PM EDT

CNBC Pro: Goldman and others say copper prices are set to soar. Here are some stocks analysts love

Wall Street analysts have recently been bullish on the metal, with Citi and Goldman predicting that prices are set to soar.

For those looking to buy into the sector, CNBC Pro screened for stocks in the Global X Copper Miners ETF, and the resulting stocks include one with nearly 100% upside.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Sun, Jun 4 2023 9:01 PM EDT

CNBC Pro: Ark Invest: These 2 A.I. stocks are being overlooked by the market

Two companies specializing in artificial intelligence are being underappreciated by the stock market, according to Frank Downing of Ark Investments.

Downing, director of research for ARK Next Generation Internet ETF, believes that as the cost of AI falls, investors should look for companies with niche use cases that can offer higher returns.

Downing suggests the stocks he's picked could be significantly boosted by leveraging large language models like those made by OpenAI, the firm behind ChatGPT.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Fri, Jun 2 2023 12:12 PM EDT

Here’s where the jobs are for May

The U.S. payrolls report for May blew past expectations, supported by strong jobs gains in the professional and business services sector — as well as a jump in government employment.

Professional and business services led job creation for the month with 64,000 new hires, following an increase of similar size in April. Government added 56,000 jobs last month, higher than the average monthly gain of 42,000 over the prior 12 months.

Job gains were broad-based last month with health care contributing 52,000 and leisure and hospitality adding 48,000.

Click to show more

— Yun Li

Fri, Jun 2 2023 1:17 PM EDT

Indexes trade near session highs as rally keeps strength heading into afternoon

The major indexes were trading near session highs with just under 3 hours left in the trading day as investors kept the Friday advance going.

The Dow rose 640 points, near its high of 666 points up.

Similarly, both the S&P 500 and Nasdaq were less than one-tenth of a percentage point off session highs. The S&P 500 was last up 1.42%, just shy of its highest point in the session of 1.5%. The Nasdaq Composite added 1.06%, slightly off its highest session gain of 1.16%.

See Chart...
The three indexes

— Alex Harring

Fri, Jun 2 2023 2:42 PM EDT

Fitch says it is not removing credit watch for U.S. despite deal

The U.S. is not out of the fiscal doghouse with Fitch, as the ratings firm said government debt is still on a watch for a possible downgrade despite the debt ceiling deal.

"Reaching an agreement despite heated political partisanship while reducing fiscal deficits modestly over the next two years are positive considerations," Fitch said in a release. "However, Fitch believes that repeated political standoffs around the debt-limit and last-minute suspensions before the x-date (when the Treasury's cash position and extraordinary measures are exhausted) lowers confidence in governance on fiscal and debt matters."

The firm cited a "steady deterioration in governance over the last 15 years" as reasons for its pessimistic outlook and said it will "resolve" the credit watch status in the third quarter of 2023.

Moody's on Thursday said it is not considering the U.S. for a downgrade.

—Jeff Cox

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