Asia markets set to rise as China factory activity assessed; Japan business sentiment on deck – NBC 6 South Florida – only Investing Info

By onlyinvesting.info Apr 1, 2024

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This is CNBC’s live blog covering Asia-Pacific markets.

Asia-Pacific markets are set to rise Monday as investors assess China’s business activity for February and await economic data out of Japan.

China’s National Bureau of Statistics data showed that manufacturing activity expanded in March, with the purchasing managers index registering a reading of 50.8, compared to Feburary’s reading of 49.1.

Economists polled by Reuters expected a reading of 49.9, which still represented a contraction in the sector.

Separately, Japan will release its Tankan survey for the first quarter on Monday. The survey gauges business sentiment, which the Bank of Japan monitors when formulating monetary policy.

Japan’s Nikkei 225 is set for a stronger open, with the futures contract in Chicago at 40,705 and its counterpart in Osaka at 40,550 against the index’s last close of 40,369.44.

Australian and Hong Kong markets are closed for Easter Monday.

On Good Friday in the U.S., February’s inflation rose in line with expectations from Dow Jones, with the the personal consumption expenditures price index excluding food and energy increasing 2.8% on a 12-month basis and up 0.3% from a month ago.

Including volatile food and energy costs, the headline PCE reading showed a 0.3% increase for the month and 2.5% at the 12-month rate, compared to estimates for 0.4% and 2.5%.

— CNBC’s Jeff Cox contributed to this report.

CNBC Pro: This payments firm has Nvidia-like profit margins and is more sustainable, says fund manager

The rapid rise in Nvidia’s share price amid the artificial intelligence hype has left some investors questioning the sustainability of the company’s valuation.

With the stock trading at a lofty 2.5% free cash flow (FCF) yield for next year, some investors are urging caution. Historically, Nvidia traded at a 4% FCF yield before the pandemic.

Instead, Hannah Gooch-Peters, global equity investment analyst at Sanlam Investments, believes there are other stocks with a 60% operating profit margin, like Nvidia’s, that are more sustainable as investment opportunities.

CNBC Pro subscribers can read more here.

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AI is very power-intensive — and its power needs are only set to rise in the coming years.

Morgan Stanley Investment Management’s Aaron Dunn names one stock to play the trend.

CNBC Pro subscribers can read more here.

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