New Zealand Delivers Biggest Rate Hike Ever

Shares in the Asia-Pacific are mixed Wednesday after U.S. stocks rose overnight and New Zealand’s central bank delivered a 75-basis-point hike, the biggest rate hike ever in the central bank’s history. Singapore’s latest inflation data showed some easing in October on an annualized basis.

In Hong Kong, the Hang Seng regained 99.4 points, or 0.6%, to 17,523.81.

Hong Kong-listed shares of Chinese online gaming companies rose after a research report published Tuesday said the country has “achieved a step toward resolution” of the issue of gaming addiction among youths.

Tencent gained as much as 2.45%, and NetEase rose 2.17% in the morning session.

Shares of BYD listed in Hong Kong traded 2.64% lower after Warren Buffett’s Berkshire Hathaway announced it cut its stake in the Chinese electric vehicle maker.

Hong Kong-listed shares of Kuaishou jumped more than 4% in morning trade after beating estimates.

The Tiktok rival reported revenue of 23.1 billion yuan ($3.23 billion), compared to the 22.58 billion yuan predicted by analysts in a Reuters poll.

Kuaishou’s operating loss and adjusted net loss also narrowed on an annualized basis.

Shares of Baidu also rose after posting a 2% increase in revenue for the third quarter, compared to the same period a year ago. Analysts surveyed by Reuters expected a 0.05% decline.

Reserve Bank of New Zealand governor Adrian Orr said that the bank’s sole target is to get the official cash rate to a point where inflation can be worn down.

Orr’s comments come after the central bank delivered its biggest rate hike of 75 basis points.

Australian markets were positive despite the Reserve Bank of Australia Governor Philip Lowe on Tuesday hinting at more rate hikes ahead.

Singapore’s core inflation rate eased 0.2% to 5.1% in October on an annualized basis, the Ministry of Trade and Industry (MTI) reported – after seeing the same index at 5.3% in September.

The latest consumer price index for October is lower than a Reuters poll forecasting 5.3% for October.

Inflation rate for all items also eased to 6.7% in October on an annualized basis after seeing a rate of 7.5% in September.

Markets in Japan were shuttered for holiday.


In Shanghai, the CSI 300 inched up 3.96 points, or 0.1%, to 3,773.53.

Chinese smartphone maker Xiaomi is scheduled to report earnings later in the day.

In other markets

In Taiwan, the Taiex gained 66.34 points, or 0.5%, to 14,608.54.

In Korea, the Kospi index recovered 12.74 points, or 0.5%, to 2,418.01.

In Singapore, the Straits Times Index slid 3.57 points, or 0.1%, to 3,255.99.

In Australia, the ASX 200 jumped 50.07 points, or 0.7%, to 7,231.77.

In New Zealand, the NZX 50 lost 96.62 points, or 0.9%, to 11,323.80.