Home Finance News New Zealand delivers its biggest rate hike ever; Asia-Pacific stocks mixed ahead of Fed minutes

New Zealand delivers its biggest rate hike ever; Asia-Pacific stocks mixed ahead of Fed minutes

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New Zealand’s central bank hikes rates by 75 basis points

The Reserve Bank of New Zealand raised its official cash rates by 75 basis points, its biggest hike on record, to 4.25%.

The decision is in line with analysts’ expectations, according to a Reuters poll.

It is the ninth consecutive hike since the RBNZ first started its rate hike cycle in October 2021, five of which were 50 basis point hikes.

New Zealand’s Inflation currently stands at 7.2%, just below three-decade highs.

— Lee Ying Shan

Investors should rotate into second-tier Chinese tech stocks: UBS Global Wealth Management

Investors should take advantage of the bumpy ride in Chinese tech stocks to move into smaller and less established companies, according to Eva Lee, head of greater China equities at UBS Global Wealth Management’s chief investment office.

“Under the current regulation, the second tier players will do better than the top ones. Use this opportunity to rotate to companies that are second tier,” such as those with resilient income, she told CNBC’s “Street Signs Asia.”

Additionally, tech giants are perceived to be “macro recovery [proxies], and the path to an eventual full reopening is “going to be up and down, it’s going to be choppy,” she said.

“We are moving over there eventually but it takes time,” she said.

— Abigail Ng

Stocks rise, S&P 500 closes above key 4,000 level for first time since Sept.

Stocks rose Tuesday with all three major averages gaining more than 1% as Wall Street bet that interest rate hikes and inflation will ease heading into the end of the year. The S&P 500 also closed at a level not seen since September.

The Dow Jones Industrial Average closed 397.82 points, or 1.18%, higher at 34,098.10. The Nasdaq Composite also gained 1.36% to 11.174.41.

The S&P 500 rose 1.36% to close at 4,003.58, its first close above the 4,000 level since September.

—Carmen Reinicke

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