Japan Movers: Softbank, Nintendo, Toyota Fall
Apple suppliers in Asia fall after analyst downgrade
China reported better-than-expected factory activity in September
China’s official manufacturing purchasing managers’ index rose surprisingly to 50.1 in September, beating the 49.6 forecast by analysts in a Reuters poll.
The 50-point mark separates growth from contraction. BMI prints compare activity month by month.
Meanwhile, the Caixin/S&P Global manufacturing Purchasing Managers’ Index, an independent survey of factory activity — It reported a contraction with a reading of 48.1.
“Softened demand conditions and lower production requirements led companies to reduce their purchasing activities in September, the fastest rate of decline in four months,” Caixin said in a press release.
The official non-manufacturing PMI was 50.6 in September, up from 52.6 in August.
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Factory activity in China is expected to contract again
China’s official manufacturing purchasing managers’ index for September is expected to fall below 50 points. Reuters poll of analysts.
Economists had expected a reading of 49.6, slightly higher than August’s 49.4, which would mark the third straight month of contraction.
PMI readings are sequential and indicate expansion or contraction on a monthly basis.
A separate survey of Chinese factory activity is due on Friday, and analysts polled by Reuters had forecast a reading of 49.5.
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Japan’s industrial production is higher than expected
CNBC Pro: Is the Fed on the Right Track? Wall Street veteran Ed Yardeny says this is what needs to be done next
The US Federal Reserve announced another 75 basis point hike earlier this month, sending the federal funds rate to 3% to 3.25%. The central bank has also signaled that it may raise interest rates to 4.6% in 2023 to curb inflation.
As the central bank’s response to inflation comes under intense scrutiny, economist Ed Yardeny, who coined the term “bond vigilantes,” offered his opinion.
Pro subscribers can Read more here.
– Javier Ong
The Fed’s Loretta Mester says interest rates are still out of control
Cleveland Federal Reserve President Loretta Mester said interest rates are still under control and more needs to be done to reduce inflation.
“Inflation is still at a 40-year high,” Meister told CNBC’s Steve Leisman during an appearance on “Squawk Box.” “So now the conversation has to be, what do we need to do to get back to price stability, because we can’t have a healthy economy, we can’t have good labor markets over time. To price stability.”
Mester said he is “slightly above the average path” among central bank officials when it comes to raising interest rates, citing the persistence of inflation.
“We’re not even in the funds rate-controlled territory yet, so you’re right, we’ve raised the funds rate by 300 basis points this year, but look at how high inflation is,” Meister said.
– Sarah Min