HSBC’s annual pre-tax profit rises 78%, misses market estimates
HSBC reported on Wednesday full-year 2023 pre-tax earnings profit rose about 78% to $30.3 billion from a year ago, missing the average estimate of $34.06 billion from analysts tracked by LSEG.
Its Hong Kong shares reversed gains to fall more than 2 percent, compared with the Hang Seng’s 3 percent gain. The bank’s shares have gained about 0.5% so far this year after jumping 23% in 2023 as the Hang Seng index fell 14%.
It last traded down 2.55%.
—Clement Tan, Lee Ying Shan
The Hang Seng rose 2%, boosted by pharmaceuticals, technology and property
Hong Kong’s Hang Seng index was 2.36% higher in morning trade, boosted by a mix of healthcare, basic materials and technology stocks.
Leading the gains of the index are pharmaceutical companies WuXi AppTec, with a jump of 6.85% and WuXi Biologics, with a rise of 5.92%.
Construction company Techtronic Industries rose 4.63%, while the real estate company Longfor Properties earned 5%.
Other index heavyweights are in the green. Meituan is up 5.72%, while Ping An and Hong Kong has been introduced to JD.com rose 3.41% and 3.22% respectively.
The Hang Seng technology index, which tracks the 30 largest technology companies listed in Hong Kong, rose 3.12 percent.
—Li Ying Shan
Australian annual wages are growing at the fastest rate in 15 years
Australia’s annual wage growth hit 4.2%, the fastest annual rate in 15 years, according to the Australian Bureau of Statistics Wage Price Index.
On a quarterly basis, Australian wages rose by 0.9% in the December 2023 quarter, driven mainly by the education and training sector, as well as the health care and social care sector, according to government data. The figure matched the expectations of analysts polled by Reuters.
“This quarter saw a significantly larger contribution to growth from the public sector,” the report said.
—Lee Ying Shan
Japan’s January exports rose 11.9% year-on-year
of Japan exports rose 11.9% in January year-on-year, according to official data.
The measure beat Reuters estimates for a 9.5% rise. The country’s imports fell by 9.6%, against forecasts for a decrease of 8.4%.
Japan posted a trade deficit of 1.758 trillion yen ($11.73 billion), compared with a surplus of 68.9 billion yen in December.
—Li Ying Shan
CNBC Pro: Want steady, passive income? Buy those dividend stocks with higher yields, says Wall Street
Dividend stocks often appeal to investors who want steady income and long-term growth.
Wall Street and other professionals share their tips on how to pick good dividend stocks and which names will generate sustainable income.
Some of these names are projected to have higher returns than cash, according to BofA.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Sentiment at major Japanese companies worsens in February: Tankan Reuters survey
Business sentiment at major Japanese companies worsened in February, according to the monthly Reuters Tankan survey. The data fueled fears of further economic weakness in Japan after last week’s data showed the economy had slipped into a technical recession.
The climate index for manufacturers stood at -1, compared to +6 in January. Separately, the poll also showed the services sector index at +26, up from +29 in January. A negative number indicates that pessimists outnumber optimists in the industry and vice versa.
“The loss of business confidence raises concerns that Japanese firms may be reluctant to raise wages enough to achieve stable and sustainable inflation in a country that has been mired in a deflationary mindset for more than a decade,” Reuters reported.
The monthly Reuters poll is considered a leading indicator of the Bank of Japan’s official survey.
—Li Ying Shan
CNBC Pro: ‘Real Estate Investment Opportunity’: Pros Name 5 REITs to Play Right Now
Rising inflation and interest rates have put significant pressure on several sectors — particularly real estate. But some market watchers believe things could change.
“I think it would be a good time to invest in real estate, especially given that we are anticipating a decline in interest rates over the next 12 months,” says Kevin Brown, senior equity analyst at financial services firm Morningstar.
Brown, along with PGIM Real Estate’s Rick Romano, reveal the top REITs to buy right now.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
Stocks close down on Tuesday
Here’s how the major indices closed:
— Pia Singh
US crude is down more than 1% after hitting a three-month high last week
An aerial view of the Phillips 66 oil refinery is seen in Linden, New Jersey, United States.
Tayfun Cosku | Anadolu Agency | Getty Images
U.S. crude oil futures fell on Tuesday after hitting a three-month high last week as the conflict in the Middle East raged.
The West Texas Intermediate The March contract fell $1.01, or 1.28%, to settle at $78.18 a barrel. The Brent The April contract fell $1.22, or 1.46%, to $82.34 a barrel. There was no WTI settlement on Monday due to the President’s holiday.
US crude rose 3% last week to settle on Friday at $79.19 a barrel, its highest price since November 6. The global benchmark rose 1.5% for the week to settle at its highest price since January 26.
Robert Thummel, senior portfolio manager at Tortoise Capital, said prices likely fell on Tuesday due in part to traders’ gains after WTI had a solid run so far this month.
Futures gained last week on the Middle East conflict after Israel launched strikes in Lebanon and vowed to continue its Gaza assault on the southern town of Rafah.
Houthi fighters on Monday attacked another cargo ship in the Bab el-Madeb Strait, forcing the crew to abandon ship. Iran-allied fighters claimed to have caused “catastrophic damage” to the ship.
— Spencer Kimball