Asia-Pacific markets mostly mixed oil pops on OPEC+ supply cuts

A Reuters poll of economists The Reserve Bank of Australia is expected to raise its key interest rate by 50 basis points to 2.85%.

When the RBA’s board members raised interest rates by 50 basis points, they said the case for a slower pace of rate hikes was growing, according to the minutes of its September 6 meeting.

Analysts at Nomura expect the central bank to raise rates by 40 basis points “to signal the RBA’s view of an end to more hikes.”

Economists at Commonwealth Bank of Australia see a 25-basis-point hike more likely than a 50-basis-point hike.

– Jihye Lee

The British pound The UK government pounced Monday morning on reports that it would reverse plans to scrap the top rate of income tax.

Sterling was up 0.8% against the dollar to trade at around $1.1250 after 7am London time, taking the pound to levels seen earlier. Announcement by Finance Minister Kwasi Kwarteng Widely criticized tax cuts on September 23.

ANZ sees “significant potential for cuts” of up to 1 million barrels per day ahead of the OPEC+ meeting on October 5, analysts at the firm said in a note.

The move could be made “to address excessive volatility in the market”.

Any output below 500,000 barrels per day would be “reduced by the market,” the note added.

– Jihye Lee

Exchange-traded funds offer the benefit of diversification, says John Mayer, chief investment officer of Global X ETFs. He called the ETF market “exponentially growing” and estimated it to be worth $10 trillion.

He names several opportunities for ETF investors in this volatile market.

Pro subscribers can Read more here.

– Javier Ong

Sentiment among Japan’s major manufacturers worsened in the July-September quarter, according to the Bank of Japan’s latest quarterly Tangen business sentiment survey.

The headline indicator for sentiment among major manufacturers was 8, up from 9 in the previous quarter. Economists polled by Reuters had expected 11.

“Our expectation and market expectations are that the production reading will pick up – supply conditions have improved, you’ve seen the supply impact fade due to the zero-covid policies in China, commodity prices have come down a little bit,” Stephen Angric said. Economist at Moody’s Analytics.

“The fact that the manufacturing side of the economy is not doing so well is certainly not good for the outlook,” he told CNBC’s “Squawk Box Asia.”

But the non-manufacturing index rose slightly, he added, indicating that Japan’s delayed Covid recovery is underway.

– Off Abigail

New research from HSBC says supply chains, geopolitical tensions and worsening financial conditions have forced many global companies to turn inward “significantly” in search of resilient revenue and growth.

In a difficult economic environment with recessionary pressures, the bank said, an inward turn would “probably be helpful” for these stocks.

‘A wave of globalization?’ Foreign sales of European companies fell below 50% in 2021, the lowest level in five years.

With monetary policy expected to tighten further in the coming months, and Wall Street sinking deeper into the bear market abyss, many investors are starting to wonder if it’s time to get out of the stock market and put their money into other asset classes.

CNBC spoke with pro market watchers and found out what pros are thinking through research from investment banks.

Pro subscribers can Read more here.

– Javier Ong