This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets were set for a rebound following a sell-off in the previous session, as investors digest comments from U.S. Federal Reserve Chairman Jerome Powell.
Powell said it would take a while for policymakers to evaluate the current state of inflation, keeping the timing of potential interest rate cuts uncertain.
In Asia, investors will assess March service sector activity data from India, as well as retail sales numbers from Hong Kong.
Markets in Hong Kong, mainland China and Taiwan are closed for a public holiday.
In Australia, the S&P/ASX 200 rose 0.54%, on pace to snap two days of losses.
Japan’s Nikkei 225 was also set to regain ground and cross the 40,000 mark, with the futures contract in Chicago at 40,045 and its counterpart in Osaka at 40,000 against the index’s last close of 39,451.85.
Overnight in the U.S., the Dow Jones Industrial Average fell 0.11%, to mark its third straight negative day. The S&P 500 inched higher by 0.11% for its first winning session of the week, and the Nasdaq Composite traded up by 0.23%.
— CNBC’s Sarah Min and Alex Harring contributed to this report
CNBC Pro: Tesla short-seller names 2 auto stocks to own — giving them 100% upside
A Tesla short-seller has named two auto stocks that he believes have the potential to deliver 100% upside to investors.
Lekander, who holds a short position in Tesla shares, has said the EV carmaker could “go bust” while its stock could fall to $14. Short-sellers profit when shares fall.
The hedge fund manager said that the “Tesla bubble” had created what he called an “anti-bubble” in the auto sector, causing investors to be overly bearish on companies that are actually performing well.
Lekander named the two auto stocks that could double in share price from current level as the Tesla bubble deflates. CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Thinking of investing in Tesla? One investor gives the stock 79% upside
Some investors may be hesitant about buying Tesla right now, but one analyst is bullish on the stock.
Over the last 12 months, the stock of Elon Musk’s auto giant has plunged by nearly 14.5%.
Shares also took a hit on Tuesday, after Tesla delivered far fewer cars than expected by analysts polled by FactSet in the first quarter of the year.
One global autos analyst, however, sees opportunities in investing in Tesla, particularly in the longer term.
“The stock, despite this performance today, is only down like 4.5%, which makes me think that expectations are already really low,” Tom Narayan from RBC Capital Markets told CNBC’s “Squawk Box Asia” on April. 3.
He also outlined other opportunities he sees in both the short and longer-term.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
HSBC sees signs of broadening equity rally
The equity starting October 2023 was initially led by mega-cap tech stocks. However, HSBC Global Research says March’s performance indicates the gains may be diversifying.
“Over the past month, the S&P on an equal weighted basis outperformed the overall index, suggesting a broadening of the equity rally, which we expect to widen further as a soft landing materializes,” strategist Nicole Inui wrote in a Tuesday note.
Inui noted that market expectations for the Federal Reserve to cut interest rates in June have dropped to 56% from 69% following the FOMC meeting.
— Hakyung Kim
30 stocks in the S&P 500 hit new 52-week highs
30 stocks in the S&P 500 hit new 52-week highs during Wednesday’s trading session.
Here are a few of the names that hit this milestone:
- Domino’s Pizza trading at levels not seen since Jan, 2022
- Kinder Morgan trading at levels not seen since Feb, 2023
- Progressive trading at all-time highs back to its IPO in 1971
- Caterpillar trading at all-time high levels back to when it first began trading on the NYSE in 1929
- 3M trading at levels not seen since Feb, 2023
- Marathon Petroleum trading at all-time highs back to its spinoff from Marathon Oil in June, 2011
- Diamondback Energy trading at all-time highs back to its IPO in Oct, 2012
- Dow Inc trading at levels not seen since Feb, 2023
- Micron trading at all-time highs back to IPO in June, 1984
— Lisa Kailai Han, Christopher Hayes
Powell says economy and policy are in ‘a pretty good place’
Federal Reserve Chair Jerome Powell expressed confidence Wednesday about the current state of the economy and policy.
“I think we’ve gotten to what is, knock on wood, a pretty good place,” Powell said in remarks at Stanford University. “We’re using our tools now to try to bring inflation down the rest of the way to 2%, all while keeping the economy strong as well.”
—Jeff Cox
