Hong Kong shares rise 2% as Alibaba lifts technology stocks; Asia markets mostly rise

According to KraneShares CIO Brendan Ahern, Alibaba’s massive transformation could be followed by Chinese tech peers.

Pointing to the ADR moves seen last night at Tencent, JD.com and Baidu, Ahern said, “Investors are optimistic about what we’ve seen at Alibaba, namely that Chinese tech leader Alibaba’s plans are not for others.” I think you are saying that there is a possibility that it will be used for

shares of Tencent increased by 2.5%, Meituan 4.6% increase, Baidu rose nearly 2%, Kuaishou It rose 3.8% in Hong Kong morning trading.

He added that the company’s announcement shows that Alibaba founder Jack Ma was recently spotted in China after spending months abroad.

“It’s very clear he’s played a role in this new structure, which is really relevant to what the company said in its press release: unlocking shareholder value,” Ahern said. .

– Lee Ji Hye

The latest business reforms announced by tech giant Alibaba are seen as a move by the Chinese government to further support the private sector, said Kingston Securities executive Dicky Wong.

“The Chinese economy has returned to growth mode. The Chinese government has to do something, so it has introduced many new policies to help the private sector, especially the technology sector,” he said on CNBC’s Street Signs Asia. Told.

He added that the government is being encouraged to hit its economic growth target of around 5% by creating new jobs in the technology sector. Alibaba’s reforms are seen as part of these efforts.

“Creating new jobs is one of the most important jobs.[s] or [the] The Chinese government needs to do that,” Wong said, adding that he hopes jobs will be created in cybersecurity and online games.

– Lee Ji Hye

S&P Vice Chairman Dan Yergin said oil prices were rising as conditions stabilized after the recent bank turmoil.

“What we’ve seen in the last few days is a sense that things have stabilized…which is leading to higher oil prices,” he told CNBC’s Squawk Box.

Crude oil benchmarks were trading after a volatile trading week. Brent crude futures rose 0.25% to $78.85 a barrel, while US West Texas Central futures rose 0.6% to $73.96 a barrel.

Asked if it would be difficult for oil prices to reach $100 a barrel, Yergin replied, “Unless something dramatic happens,” and China’s air travel bounced back to 2019 highs. He added that he did not.

— Lee Yingxiang

Monthly inflation in Australia slowed to 6.8% in February compared to the same period last year.

That’s lower than January’s 7.4% and lower than economists’ forecast of 7.1%.

According to data from the National Bureau of Statistics, housing had the biggest price increases, followed by food and non-alcoholic beverages, and transport.

Inflation data, like Tuesday’s retail sales data, will be key in deciding whether the Reserve Bank of Australia will raise rates in April.

— Lim Hijie

Alibaba Stocks surged more than 11% in midday trading on Tuesday after the e-commerce giant announced it would split the company into six business groups.

This is the most significant restructuring in Alibaba’s history, with each of the six companies set to be managed by its own CEO and board of directors.

The move is “aimed at unlocking shareholder value and promoting market competitiveness,” the company said in a statement.

Separately, Morgan Stanley responded to the announcement by stating, “Stock prices will rise in absolute value over the next 60 days,” naming it the Investigative Strategic Idea.

Arjun Karpal Sarah Min

Banks led the stock market’s decline on Tuesday afternoon. This follows a public hearing in which three regulators said they would support tighter regulation for smaller financial institutions.

Fed Vice Chairman Michael Barr, FDIC Chairman Martin Gruenberg and Treasury Department Undersecretary for Domestic Finance Nellie Liang have each announced tougher policies for banks with more than $100 billion in assets. He said he would support the requirement.

The remarks were made at a Senate Banking Committee hearing on the recent failures of three local banks. Senator Elizabeth Warren (D., Massachusetts) voted to support tougher rules for banks other than those identified as systemically important, and the deregulation changes made in 2018 We asked each if they supported reverting the .

“I believe it is in our best interest to review these actions in light of recent episodes and consider what changes need to be made,” Gruenberg said.

The SPDR Regional Banking and SPDR Bank ETFs each lost more than 1% in afternoon trading.

— Jeff Cox

Stock Market Trends Up in Q1 2023, S&P 500 and MSCI World Index We plan to post a total profit of more than 4%.

This is especially noticeable after a year of negative returns.

Here, CNBC Pro subscribers can read how the market has performed in similar conditions in the past.

— Ganesh Rao

All three regulators, who testified before the Senate Banking Committee on Tuesday, said rules for local banks need to be tightened.

In response to a question from Senator Elizabeth Warren (D-Massachusetts), Federal Reserve Vice Chairman Michael Barr said, “The capital and liquidity of companies over $100 billion We anticipate that the standards will need to be tightened,” he said.

Mr. Barr’s fellow officials echoed his views on the recent failures of Silicon Valley Bank, Signature Bank and Silvergate Bank.

“My view hasn’t changed,” said FDIC Chairman Martin Gruenberg, noting that he voted against deregulation moves in 2018.

Undersecretary for domestic finance Nellie Liang said she agreed that “we need to prevent bank failures of this kind.”

Bank shares rose slightly after the exchange.

— Jeff Cox

Over the past month, the market has been hit with volatility, leaving some retail investors wondering where to put their money.

If you could invest $10,000, where should you invest in uncertainty and how much should you allocate to each asset class? CNBC Pro speaks to portfolio managers and investors to find out.

CNBC Pro subscribers can read more here.

— Tan Weizhen

Consumer outlook for March brightened slightly despite the banking crisis, according to The Conference Board’s index released on Tuesday.

The Board’s Consumer Confidence Index rose to 104.2 from 103.4 in February, beating the Dow Jones estimate of 100.7.

Additionally, the Expectations Index, which measures short-term prospects, rose to 73 from 70.4. However, the index remains below the 80 level consistent with recession. The inflation index also continued to rise, with his outlook for the next 12 months at 6.3%.

— Jeff Cox