Hong Kong stocks roar back after shortened trading day
Hong Kong stocks extended gains on Tuesday, with the Hang Seng index up as much as 2% and among top gainers in Asian markets.
Leading gains on the index were real estate and technology stocks, with Chinese shopping platform operator Meituan and sportswear company Li Ning, up 4.78% and 4.42%, respectively.
Logistics company Orient Overseas was a rare decliner on the day, down 3.9%.
Hong Kong experienced a shortened trading day of just two hours in the previous session due to a typhoon warning.
— Shreyashi Sanyal
Japan’s Nikkei jumps 2%, powered by gains in energy and distribution stocks
CNBC Pro: Goldman Sachs says Japan is a ‘bright spot’ right now and reveals some top stocks
Goldman Sachs is bullish on Japan right now and says one sector in particular is seeing a “high level of interest” following rallies of around 30%.
The bank reveals two stocks to buy and gives both around 20% upside potential.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
CNBC Pro: ‘Cheap’ and ‘compelling’: Pros name the oil stocks to buy — giving one over 120% upside
The conflict between Israel and Hamas may not have a direct impact on oil supply, but it’s likely to drive up oil prices in the short term just based on fears of a wider escalation, according to analysts.
CNBC Pro asked fund managers and analysts which energy names they would focus on.
CNBC Pro subscribers can read more here.
— Weizhen Tan
All sectors end Monday higher, led by gains in energy and industrials
All sectors ended Monday in the green, led by gains in energy and industrials, which closed higher by 3.5%, and 1.6%, respectively. Oil and natural-gas prices jumped during the day, driven by Hamas’ attack on Israel and Israel’s ensuing battle against the Hamas militants, leading to concerns about the region’s oil supply.
Halliburton was the biggest energy winner, with the stock popping 6.8%, followed by Marathon Oil Corp and ConocoPhillips.
Along with oil and gas giants, major defense companies also jumped amid the Middle East conflict. Defense tech and aerospace giants Northrop Grumman Corp and L3Harris Technologies led industrials higher, adding 11.4% and 9.9%, respectively. Lockheed Martin also climbed 9.9%.
The real estate sector gained 1.3%, while utilities added 1%.
— Pia Singh
The likelihood of a November rate hike falls
The odds of another rate hike from the Federal Reserve in November is falling, according to the CME FedWatch Tool.
Markets are pricing in an 86% likelihood on Monday that the Federal Reserve will hold rates steady at next month’s policy meeting. That’s up sharply from a 72.9% chance on Friday.
— Sarah Min
Gold, the dollar and U.S. Treasuries catch a Monday safety bid
Gold futures, the U.S. dollar and U.S. Treasuries all rose in early trading Monday as investors sought what are perceived to be safe ports in a world of increased violence, expanding defense budgets and uncertain inflation.
Gold rallied about $28 the ounce to $1859.80, up 1.53%, according to FactSet.
The DXY Index that measures the value of a dollar against six global currencies, but mostly the euro and the yen, rose as high as 0.4712% Monday, to 106.60.
Although the bond market is closed for Columbus Day, 10-year Treasury futures added about 0.67%, the five-year gained 0.50% and the two-year by 0.20%.
— Scott Schnipper