Blinken said he also discussed managing the US-China rivalry “responsibly,” without elaborating. The State Department said Blinken raised the issue of Russia’s war against Ukraine and the “threats it poses to global security and economic stability,” the statement said. — Jihye Li
US dollar has more room to strengthen on interest rate differentials: Wells Fargo
The US dollar is expected to strengthen further on interest rate differentials as central banks around the world take a “less hawkish” tone, according to Wells Fargo. “We’re starting to see some of the foreign central banks … moving a little bit to the less hawkish side,” while the Federal Reserve maintains its hawkish stance, FX strategist Brendan McKenna told CNBC’s “Squawk Box Asia.” McKenna said he expects the dollar’s strength to continue into the first quarter of next year “at least.” — Jihye Li
Australian retail sales rose 0.6% in September
Australian retail sales rose 0.6 percent in September from August, official data showed, in line with expectations in a Reuters poll and the same pace reported in the previous monthly period. Sales of clothing, footwear and personal accessories rose 2%, while coffee shops, restaurants and takeaways rose 1.3%. The country’s retail volumes are published on Friday and ANZ Research expects quarterly growth of 0.4%. “This would represent the slowest growth since the Covid era, but still solid for household spending given the shift from retail to services,” ANZ Research tweeted. — Abigail Off
Goldman Sachs expects Fed rates to peak at 5%
Economists at Goldman Sachs expect the Federal Reserve’s funds rate to peak at 5 percent after it raised its forecast for a 75 basis point increase in the central bank next week’s meeting. Economists led by Jan Hatzius said in a note on Saturday that they are adding another 25 basis points to their forecasts – now calling for a hike of 50 bps in December, 25 bps in February and 25 bps in March. “Inflation is likely to remain uncomfortably high for a while, which could make continuing to rise in small increments the path of least resistance,” the note said. — Jihye Li
Macau gaming stocks fall after casino lockdown over dealer’s Covid case
Hong Kong-listed Macau gaming stocks fell sharply in early trade after a worker at MGM China’s Cotai casino tested positive for Covid, according to a government announcement. Several areas related to the case were placed under lockdown, another statement said, with the measures expected to be lifted between November 3 and 5. MGM China shares fell 2.89%, Wynn Macau fell 2.62%, Galaxy Entertainment stock fell 1.85%. Shares of Sands China also fell 2.29%. SJM Holdings also fell more than 3%.
Factory activity in China contracted in October, missing expectations
China’s factory activity contracted in October compared with September, according to data from the National Bureau of Statistics. The official print PMI of the industry came in at 49.2, missing expectations for a reading of 50 – the mark that separates monthly growth from contraction. In September, the PMI reading was 50.1. China’s official non-manufacturing PMI came in at 48.7, up from a 50.6 print in September. — Abigail Off
Japan’s industrial production declines for the first time in four months
Japan’s industrial output fell 1.6 percent in September from August, government data showed — falling more than expectations for a 1 percent drop in a Reuters poll and ending a three-month growth streak. The decline was driven by motor vehicles, chemicals and manufacturing machinery, the statement said. A government survey forecasting industrial production figures predicts a fall in October, but an increase in November. — Jihye Li
CNBC Pro: These 12 Cheap Global Stocks Are Expected to Rally — And Analysts Love Them
Stocks around the world have sold off this year on recession fears and soaring inflation — and now they look cheap. Analysts say there could be buying opportunities in some stocks they expect to rise. To find these stocks, CNBC Pro checked for names under the MSCI World Index that met a number of criteria. CNBC Pro subscribers can read more here. — Weizhen Tan
Currency Check: Japanese yen weakens beyond 148 levels
The Japanese yen fell beyond the 148 level against the US dollar in morning Asian trade for the first time since last Wednesday. The moves come ahead of the Fed’s policy meeting this week, where the central bank is expected to raise interest rates by 75 basis points, further widening the interest rate gap between the US and Japan. The Japanese yen saw some strength to 146 levels last week ahead of the Bank of Japan’s monetary decision to keep interest rates steady, before retreating to 148 against the dollar. It was last at 148.23 per dollar. — Abigail Off
China’s October factory activity is forecast unchanged from September
China’s official PMI for October is expected to be roughly flat from September, according to a Reuters poll. The reading is forecast to reach 50, the point that separates growth from contraction. PMI prints compare activity from month to month. In September, the economy posted a PMI of 50.1. — Abigail Off
Traders are looking for signs of a slowdown from the Fed
Wall Street will be closely watching the Federal Reserve’s statement this week for signs that the central bank will ease the pace of interest rate hikes. According to the CME FedWatch tool, traders believe there is an 80% chance the Fed will raise interest rates by three-quarters of a point on Wednesday. That would bring the central bank’s target range to 3.75% to 4%. Beyond that, though, the market looks more uncertain. There is only a 44% chance of another increase of this size in December. — Jesse Pound
