Hong Kong stocks volatile, Asia markets mixed; China PMI shrinks into

U.S., China top diplomats discuss relationship, Russian war: State Department

U.S. Secretary of State Antony Blinken spoke with Chinese Foreign Minister Wang Yi and discussed the “need to maintain open lines of communication,” according to a State Department readout.

Blinken said that he also discussed managing U.S.-China competition “responsibly,” without elaborating further.

The State Department said Blinken raised the issue Russia’s war on Ukraine and the “the threats it poses to global security and economic stability,” the statement said.

— Jihye Lee

The U.S. dollar has more room to strengthen on rate differentials: Wells Fargo

U.S. dollar has room to strengthen further until early next year, says strategist

The U.S. dollar is expected to strengthen further due to rate differentials since central banks around the world are taking a “less hawkish” tone, according to Wells Fargo.

“We’re starting to see some of the foreign central banks … turn a little bit on the less hawkish side,” while the Federal Reserve maintains its hawkish stance, FX strategist Brendan McKenna said on CNBC’s “Squawk Box Asia.”

McKenna said he expects dollar strengthening to continue into the first quarter of next year “at minimum.”

— Jihye Lee

Retail sales in Australia rise 0.6% in September

Australia’s retail sales rose 0.6% in September from August, official data showed, in line with expectations in a Reuters poll and at the same pace reported in the previous monthly period.

Sales of clothing, footwear and personal accessories rose 2%, while cafes, restaurants and takeaway food increased 1.3%.

The nation’s retail volumes are released on Friday, and ANZ Research expects quarterly growth of 0.4%.

“This would represent the slowest growth since Covid but still solid for household spending given the shift from retail to services,” ANZ Research said in a tweet.

— Abigail Ng

Goldman Sachs expects Fed rates to peak at 5%

Economists at Goldman Sachs expect the Federal Reserve funds rate to peak at 5%, after raising its forecast for the central bank to hike 75 basis points in this week’s upcoming meeting.

Economists led by Jan Hatzius said in a Saturday note that they are adding another 25 basis points to their forecasts — now calling for a 50 bps hike in December, a 25 bps hike in February, and another 25 bps hike in March.

“Inflation is likely to remain uncomfortably high for a while, which could make continuing to hike in small increments the path of least resistance,” the note said.

Jihye Lee

Macao’s gaming stocks drop after casino lockdown from dealer Covid case

Hong Kong-listed Macao gaming stocks fell sharply in early trade after a worker at MGM China‘s Cotai casino tested positive for Covid, according to a government notice.

Multiple areas related to the case were placed under lockdown, another notice said, with the measures expected to be lifted between November 3-5.

MGM China shares fell 2.89%, Wynn Macau slipped 2.62%, Galaxy Entertainment shares declined 1.85%. Sands China shares also shed 2.29%. SJM Holdings also fell more than 3%.

Factory activity in China shrank in October, missing expectations

China’s factory activity shrank in October compared with September, data from the National Bureau of Statistics showed.

The official manufacturing…

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