An Hour Ago
China’s real estate slump is predicted to last for years
Economists on Wall Street are warning weakness in China’s property market could be a drag on the economy for years to come.
“We see persistent weaknesses in the property sector, mainly related to lower-tier cities and private developer financing, and believe there appears no quick fix for them,” Goldman Sachs economists led by China economist Lisheng Wang said in a weekend note.
Goldman’s economists said the property market is expected to see an “L-shaped recovery” — defined as steep declines followed by a slow recovery rate.
Morgan Stanley in an outlook report added should monetary easing measures fail to support the ailing sector, it will also lead to concerns of a spillover effect in the rest of the Asia-Pacific region.
A “downside risk would be if China’s property sector does not stabilize even with the easing we expect,” they said. “In that scenario, confidence and financial conditions will tighten in China, which will have direct implications for China’s growth but also will negatively spill over to the region.”
– Jihye Lee
An Hour Ago
South Korea’s export, import prices fell further in May
South Korea’s export prices in May fell 11.2% year-on-year, the most since March 2010, when export prices fell by 12.2%. This comes after prices fell 7.2% in April.
Import prices also fell 12% year-on-year, following a 6% decline the previous month.
The South Korean won weakened by 0.42% to 1,273.02 against the U.S. dollar, while the Kospi rose 1.5%
– Jihye Lee
2 Hours Ago
South Korea unemployment reaches record low in May
South Korea’s unemployment rate reached a record low of 2.5% in May, a level last seen in August 2022.
Government data showed that the number of employed persons totaled 28.84 million in May, increasing by 1.2% year-on-year.
The employment to population ratio stood at 63.5% in May, up 0.5% percentage points year-on-year.
Separately, the number of unemployed persons was at 787,000 thousand people in May, down 11.5% year-on-year.
— Lim Hui Jie
13 Hours Ago
CPI comes in at lowest level in 2 years
The consumer price index rose 4% year over year last month, matching a Dow Jones forecast and marking its lowest level in two years. The CPI’s month-over-month change and so-called core measure — which strips out volatile food and energy prices — were also in line with expectations.
— Jeff Cox
6 Hours Ago
Stocks close higher ahead of Federal Reserve policy meeting
Stocks closed higher on Tuesday after traders spent the session adding to optimism that the latest inflation data could support the central bank skipping a rate hike for June.
The Dow Jones Industrial Average added 146 points , or 0.4%, to close at 34,212.12. The S&P 500 gained 0.7% to close at 4,369.01, and the Nasdaq Composite advanced 0.8% to 13,573.32.
The consumer price index showed inflation increased 0.1% in May, down from 0.4% a month earlier, and gained 4% year over year. The Fed will decide its next move on policy Wednesday.
— Brian Evans
11 Hours Ago
WTI Crude Futures on track for best day since May
WTI (JUL) gained 3.7% to reach $69.74 Tuesday, on track for its best day since May 5, when it gained 4.05%. This is also the commodity’s first positive day in the last four trading sessions.
The VanEck Oil Services ETF (OIH) is also up 4%, on pace for its best day since Jun 2, when OIH gained 5.12%. OIH leaders today include NexTier, Patterson-UTI, Nabors, Transocean, which are all up more than 5% during Tuesday’s trading session.
— Hakyung Kim, Gina Francolla
11 Hours Ago
China internet ETF rises 4%
The KraneShares CSI China Internet ETF (KWEB) is up about 4% in Tuesday’s session.
That puts it on pace for its best performance since June 1, when the fund finished 4.97% higher.
Baidu has led the index up with a gain of more than 7%. iQIYI and Lufax followed, with each advancing more than 6%.
All U.S. stocks in the index were up in Tuesday’s session.
Despite the rally, the ETF is still down more than 4% this year.
— Alex Harring, Gina Francolla
