Asian markets, Australian retail sales, Hong Kong mask mandate, Bank of Japan

Shares of South Korean battery materials maker L&F jumped more than 15% after it announced it had won a nearly $3 billion order from Tesla.

The company said in a filing that it won a $2.91 billion contract to supply high-nickel cathode materials to Tesla from Jan. 1, 2024 through Dec. 31, 2025.

L&F shares last traded up 10% on Tuesday, hovering at their highest levels since May 2022.

– Jihye Lee

Bank of Japan Deputy Governor Masazumi Wakatabe reiterated his support for the central bank’s 2% inflation target, according to a transcript of his speech at Columbia University.

“The whole idea of ​​having a clearly defined inflation target hinges on the importance of communication,” he said in his speech.

“Communication with the general public is particularly important because their perception plays a key role in anchoring inflation expectations, and therefore affects the actual course of inflation,” he said, adding that ” sustained monetary easing” from the central bank had had a positive effect on the real economy.

– Jihye Lee

South Korean entertainment company SM Entertainment announced an enhanced shareholder return policy ahead of its annual general meeting in March, according to a filing released Monday.

The company plans to extend its shareholder return targets to at least 30% of its net income separated from 20%.

The move is seen as part of broader efforts to keep small investors who hold just over 70% of SM shares.

Rival K-pop agency Hybe became SM’s biggest shareholder after buying a 14.8% stake from Lee earlier this month, while Kakao bought a 9.05% stake.

Shares of SM Entertainment rose 0.25% on Tuesday, Hybe gained almost 3% and Kakao rose 0.32%.

– Lim Hui Jie

Japan’s retail sales jumped 6.3% in January from the same period last year, beating economists’ expectations of 4%.

Government data showed trade sales in January 2023 amounted to 45.7 trillion yen ($335 billion), a 3.2% increase from the same month last year.

Wholesale sales amounted to 32.7 billion yen, up 2% from a year ago, while retail sales rose 6.3% to 13 trillion yen.

–Lim Hui Jie

Japan’s industrial production fell 4.6% from a month ago in January, the biggest decline the economy has seen in eight months, according to Japan’s Ministry of Economy, Trade and Welfare. Industry.

The reading fell further than expectations for a 2.9% decline and follows a 0.3% rise the previous month.

Automobiles, semiconductor manufacturing equipment, technology parts and appliances led the overall decline. Shipments fell moderately and inventories fell for the second month in a row.

Basic capital goods saw steep declines, the statement said.

– Jihye Lee

Two tech themes have taken Wall Street by storm so far this year.

One is the return of semiconductor stocks, as demand rebounds for chips; the other is artificial intelligence, following the buzz around the ChatGPT chatbot.

CNBC Pro selected the highest-rated ETFs with exposure to semiconductor and/or AI-related stocks (among others) using data from Morningstar. The resulting funds have all received a four or five star rating from Morningstar and have performed well over the past three years.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

The People’s Bank of China and the China Banking and Insurance Regulatory Commission have released draft measures to strengthen the ability of financial institutions to lend to companies that rent residential properties.

The measures aim to expand bond funding channels for rental housing companies, support the issuance of operating loans for leasing and strengthen credit support for rental housing construction, the draft says.

—Jihye Lee

Investors wondering what drives stock market moves should look at interest rates.

Chart analysts say last week’s selloff may be tied to rising bond yields. All three major stock market indices posted their worst weeks of the year last week.

“The recent stock market reset looks more like a by-product of rising rates than a (simple) reset out of overbought territory for equities,” said JC O’Hara, chief market technician at Roth MKM, in a note to customers. Sunday.

“Overall, we believe this pullback has been orderly for equities,” he added in his note. “However, higher rates are once again becoming an important factor.”

And analysts said movements in fixed income securities could be a driver for the stock market going forward. CNBC Pro subscribers can read the full story here.

—Alex Harring

The stock market’s recent attempt to break out of a downtrend may soon come to an end, according to Morgan Stanley.

Mike Wilson, the company’s chief U.S. equity strategist, said in a note to clients on Monday that the S&P 500 is on the verge of falling back into a bear market.

“With the stock market showing signs of exhaustion after the last Fed meeting, the S&P 500 is at critical technical support. Given our view on earnings, March is a high-risk month for market recovery. bearish,” Wilson said.

For more, read the full story on CNBC Pro.

—Jesse Pound, Tanaya Macheel

The 2-year yield added to its February gains on Monday, hitting 4.8% on the day. This is its highest level since July 2007. Short-term rates have risen this month as traders worry about the possibility of monetary policy tightening for longer than expected.