Live updates, Japan earthquake, China Caixin PMI

Indonesia’s headline inflation rate in December was 2.61%, slightly lower than the 2.72% expected by economists polled by Reuters.

The inflation rate was also lower than the 2.86% recorded last month.

Core inflation was 1.8%, lower than the 1.85% forecast in a Reuters poll and the lowest level since December 2021, Reuters data showed.

Indonesia’s central bank has set an inflation target of 1.5% to 3.5% for 2024, slightly lower than the 2023 range of 2% to 4%.

— Lim Huijie

The Dutch government has partially revoked semiconductor equipment maker ASML’s license to export two systems used to make advanced chips to China.

“The license to ship NXT:2050i and NXT:2100i lithography systems in 2023 was recently partially revoked by the Dutch government, affecting a small number of customers in China,” ASML said in a statement. .

The NXT:2050i and NXT:2100i are deep-UV lithography machines used for high-volume production of cutting-edge logic and memory chips.

The company said it does not expect this action to have a material impact on its 2023 financial outlook.

ASML has been restricted from exporting extreme ultraviolet lithography equipment to China by the Dutch government in an effort to contain Chinese chip manufacturing technology. ASML does not currently ship any equipment to China.

— Sheila Chan

A private survey showed an expansion in China’s manufacturing activity in December, contradicting a similar survey conducted by the country’s statistics bureau that reported a contraction.

The Caixin Manufacturing Purchasing Managers’ Business Conditions Index stood at 50.8 in December, following a reading of 50.7 in November. China’s official PMI in December was 49.0, down from 49.4 the previous month, the National Bureau of Statistics said in a statement on Sunday.

PMI readings above 50 indicate expansion in activity, while readings below that level indicate contraction.

— Clement Tan

According to preliminary estimates by the country’s Ministry of Trade and Industry, Singapore’s economy grew by 2.8% in the final quarter of 2023 compared to the same period last year.

This is a significant increase from the 1% expansion recorded in the third quarter and the highest growth rate since the third quarter of 2022.

On a seasonally adjusted quarter-on-quarter basis, economic growth was 1.7%, faster than 1.3% in the third quarter..

Read the full text here.

— Lim Huijie

China’s manufacturing activity contracted further in December 2023, indicating that economic recovery is likely to require further policy support.

Official data released over the weekend showed China’s Manufacturing Purchasing Managers’ Business Conditions Index stood at 49 in December, the third straight month of decline and above the 49.5 expected in a Reuters poll.

A PMI reading below 50 means the economy is contracting.

The manufacturing PMI in December was also the sharpest decline since June 2023, falling further from November’s 49.40.

The Caixin Manufacturing Business Index for December will be released later this day.

— Shreyashi Sanyal

Australian factory activity in December was the sharpest contraction since May 2020, according to a private survey by Judo Bank.

The country’s Manufacturing Purchasing Managers’ Index was 47.6 in December, down from 47.7 in November, marking the 10th consecutive month of negative figures.

The bank said in a release that this was primarily due to a further deterioration in demand for Australian manufacturing, with new orders for Australian manufactured goods declining for the 13th consecutive month.

This was due to pressure from weak economic conditions and high interest rates, and external demand was also weak, the central bank added.

— Lim Huijie

From family offices to financial advisors, interest in alternative assets appears to be on the rise, but there seems to be controversy over whether individual investors should invest in them.

Caesar Sengupta, CEO of financial services firm Alta Finance, argues that there is “incredible value in the private market” and that this asset should not be overlooked.

Saxo’s chief investment officer Steen Jacobsen has argued elsewhere that retail investors need to be cautious when dabbling in alternative investments.

“I think you need more knowledge than an individual individual investor to get into these. My advice is not to buy, even if it’s priced perfectly,” he said, adding that he doesn’t know which assets he wants to buy in 2024. He added that he was bullish about the class.

CNBC Pro subscribers can read more here.

— Amara Balakrishna

Energy stocks may have had a tough year, but Goldman Sachs sees a future in big European oil, naming integrated oil stocks as its theme for the new year.

“We’re at a tipping point, with major European oil companies starting to outperform major U.S. oil companies and potentially closing the 40% valuation gap with their U.S. peers,” said an analyst at the investment bank.

That’s why investment banks have given a positive outlook for Big Oil, even as oil prices have risen as major shipping lines and oil carriers halted sailings through the Red Sea. The oil outlook for 2024 is also disappointing, with the International Energy Agency expecting the economic slowdown to continue next year.

Still, Goldman points out that “the major EU oil companies are now being screened as attractive thanks to their enhanced buyback programs, leading to double-digit cash returns for shareholders.” I mentioned it.

CNBC Pro subscribers can read more here.

— Amara Balakrishna