Asia-Pacific markets, Fed, Wall Street, Apple, Tesla, Japan PMI

Japan’s manufacturing activity marked the weakest in more than two years

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers Index for December posted a reading of 48.9, marking a second consecutive month in contraction territory.

The reading was down from November’s 49.0, marking the weakest figure since October 2020’s figure of 48.70.

The sustained contractions in production were attributed to “weak global economic trends,” the report said.

– Lee Ying Shan

Tesla’s Asia suppliers drop after delivery report

Tesla suppliers in Asia fell after reporting fourth-quarter vehicle production and delivery numbers for 2022 that fell short of expectations.

The delivery report showed 405,278 total deliveries for the quarter and 1.31 million total deliveries for the year, lower than expectations to see about 427,000 deliveries for the final quarter of the year.

Japanese Panasonic lost 1.82% in early Asia trade – South Korea’s LG Chem fell 0.17% in earlier hours and Samsung SDI lost about 2%.

Shenzhen-listed shares of Contemporary Amperex Technology, or also known as CATL, fell 1.7%. Shares of Tesla fell 12% on Wall Street on Tuesday.

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– Ashley Capoot, Jihye Lee

CNBC Pro: Wall Street is bullish on this chip giant, with Morgan Stanley giving it 55% upside

The once-hot chip sector suffered in 2022, but Wall Street seems to be getting more optimistic about semiconductor stocks for next year.

Recently, some professionals have urged investors to take a longer-term view of the sector, given the importance of chips in several key global trends.

Analysts have named one stock in particular that they are bullish on, citing its earnings potential and future profitability.

CNBC Pro subscribers can read more here.

— Weizhen Tan

US manufacturing PMI slips at fastest rate since May 2020

The US manufacturing price managers index, a measure of output, fell at the fastest rate in December since May 2020, according to S&P Global.

The index was 46.2 in December, down from 47.7 in November, according to data released on Tuesday. Lower prices and contract production levels weighed on the index. In addition, December saw a sharper decline in new sales than expected, with companies noting uncertainty due to the economic backdrop.

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— Carmen Reinicke

Tesla falls 13%, hits new 52-week low

The stock slipped more than 13%, reaching levels not seen since August 2020. The slide comes from the worst annual performance for the stock – Tesla fell 65% in 2022.

— Carmen Reinicke

Apple’s market cap drops below $2 trillion

A sale and Apple The shares pushed the iPhone maker’s market capitalization below $2 trillion on Tuesday.

Shares lost 4% amid news that it is reportedly cutting production on some items due to weak demand. Concerns about iPhone supplies during the holiday season have risen in recent weeks and weighed on the stock as shutdowns rolled through Apple’s major supplier in China.

The decline in shares contrasts with a year ago, when Apple became the first US company to hit a market capitalization of $3 trillion.

Apple was the latest of the mega cap technology stocks to hover above the $2 trillion level.

– Samantha Subin

The US will avoid recession in 2023, says Goldman Sachs

Goldman Sachs has an out-of-consensus forecast for the US economy in 2023.

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“Our economists continue to believe that the United States will avoid recession as the Fed successfully develops a soft landing on the economy,” the analysts wrote on Tuesday.

“This outside consensus forecast partly reflects our view that a period of below-potential growth is sufficient to gradually rebalance the labor market and dampen wage and price pressures,” the note said. “But it also reflects our analysis, which shows that the threat of fiscal and monetary policy will decline sharply next year, contrary to the consensus view that the lagged effects of interest rate hikes will cause a recession in 2023.”

Additionally, the bank today raised its 4Q22 GDP growth forecast by 10bp to +2.1% on the back of a surprisingly strong November Construction spending release

“The disconnect between the resilience of the US economy in 2022 and the downdraft experienced by stocks has been a key narrative of the past year,” Goldman said. “And, whether this disconnection continues, or the economy meets the market downdraft, or the market rebounds after an economic soft landing can be at least part of the narrative of 2023.”

— Carmen Reinicke


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