Asia Pacific markets are trading lower; China’s trade data in August missed expectations

The Japanese yen weakened further to 144.35, the weakest since mid-1998 – as the US dollar index strengthened, Reaching a new peak for 24 years against the Japanese currency.

The offshore Chinese yuan also weakened to 6.99, slightly approaching the 7 mark, after weaker-than-expected trade data.

The South Korean won has also weakened, surpassing the 1,380 level for the first time in more than 13 years.

Nomura cut its full-year Chinese GDP forecast to 2.7%, another drop from its previous estimate of 2.8% set in August.

The new forecast is based on Nomura’s analysis that found 12% of Chinese GDP to be affected by Covid controls on a weighted basis, up from 5.3% last week.

Several cities, including the tech hub of Shenzhen, have tightened Covid controls in the past few weeks after new local infections were reported. Chengdu also ordered people to stay home while authorities conduct mass virus testing.

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“Evelyn Cheng”

China Exports rose 7.1% in August Compared to the same period last year, official data showed, it was missing estimates of 12.8% after rising 18% in July.

Imports rose 0.3%, less than expectations for a 1.1% gain in a Reuters poll and a 2.3% increase in July.

The country saw a trade surplus of $79.39 billion in August, driven by weak import numbers, after it posted a record trade surplus of $101.26 billion in July.

–Ji Lee

oil prices Drops On Wednesday after more Covid restrictions in China and expectations of further interest rate hikes globally.

The West Texas Intermediate US While futures fell 1.45% to $85.62 a barrel Brent crude Futures fell 1.14% to $91.77 a barrel, giving up earlier gains after the latest OPEC+ meeting and its decision to cut production.

Reuters forecasts expect WTI to extend its downtrend to $83.17 per barrel.

– Lee Ying Shan

Oil and gas stocks are set to get a boost from rising tensions surrounding Russian gas supplies to Europe, according to an analyst.

Kenny Polkari, chief market strategist at SlateStone Wealth, told CNBC’s “Street Signs Asia” that investors should focus on big US energy names that are also good earnings drivers.

One stock he named is up 125% this year, and he says there is “more room to run.”

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– Weezin Tan

Official data showed that Australia’s real GDP grew 0.9% in the second quarter after rising 0.7% in the previous period.

The Australian Bureau of Statistics said Continued growth was supported by the first full quarter of the reopening of the border.

The data also showed that the Australian economy grew by 3.6% over the past year. ABS said strong domestic demand as well as increased travel were supporting overall growth.

– Jie Lee

After years of strong market returns, semiconductor stocks have sold out heavily this year. But one stock came out relatively unscathed from the market carnage. Not only did it outperform its peers, it beat the S&P 500 by a diagonal mile.

Analysts believe that the stock can still rise.

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– Xavier Ong

The bond sale boosted US Treasury yields to their highest levels since mid-June as investors weigh what strong economic data means for future interest rate hikes for the Federal Reserve.

The 10-year US Treasury yield rose 3.353%, the highest since June 16, when the yield was 3.495%. Yield is opposite to price.

The 30-year US Treasury yield was 3.484% and the 5-year US Treasury yield was 3.334%, both the highest levels seen since mid-June.

The two-year yield also rose to a daily high of 3.535%, but it is the highest note yield since Friday.

– Carmen Renick