Hong Kong stocks gain over 2%, Asia markets rise as investors assess rate decisions in Asia

Australia’s Qantas announced Thursday that it had clinched an underlying profit before tax of 2.47 billion Australian dollars ($1.6 billion) for the year that ended on June 30, an improvement from an AU$1.86 billion loss a year ago, a statement read. 

“We’re a lot better than where we were at the start of the year,” said the airline’s CEO Alan Joyce, attributing the airline’s profits to its low cancellation rates and “on time performance.” 

Demand for domestic and international flights have made steady recovery since the pandemic, and the airline is set to increase its fleet. Qantas has placed a multi-billion dollar order for 12 Airbus 350s and 12 Boeing 787s that will begin to arrive in its 2027 financial year.

“Our balance sheet is as strong as it’s been in decades, and our earnings have made a step level with a billion dollars cost out which means we can afford this fleet replacement growth going forward,” Joyce said.

— Charmaine Jacob

Analysts at Morgan Stanley picked several global stocks they say are set to benefit from the artificial intelligence trend, from semiconductors to server companies.

“The 2024 earnings for AI stocks are higher than they were on July 1, and fundamentals for AI companies look even better,” Morgan Stanley said in a note to investors seen by CNBC Tuesday, titled “A Pivotal Moment for AI.”

CNBC Pro subscribers can read more here.

— Lucy Handley

South Korea’s central bank held its benchmark policy rate at 3.5% — a rate that has been unchanged since the start of the year.

This is in line with expectations by economists surveyed in a Reuters poll — all 43 economists polled said they did not expect a change to the base rate.

The South Korean won strengthened slightly against the greenback following the announcement, trading 0.1% lower at 1,325.11.

— Lim Hui Jie

South Korea’s producer price index grew 0.2% year on year in July, marking the 13th straight month of slowing growth.

This was lower than the revised figure of 0.3% in June and also the lowest rate of growth since December 2020.

The PPI tracks variations in the prices of goods shipped by industrial producers within the South Korean domestic market, and is a measure of inflation from the perspective of producers.

— Lim Hui Jie

Stocks in the sector are an option for investors seeking inflation protection, says one strategist, who names one with “plenty of room to grow.”

He says it’s “a far superior alternative” to Treasury Inflation-Protected Securities.

Fund managers and other investors name stocks to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

JPMorgan warned that rapid growth in artificial intelligence is no guarantee of sustained earnings expansion — and could leave many companies at risk.

The Wall Street bank said that the rise in companies using generative AI, the technology made popular by OpenAI’s ChatGPT, will boost productivity and deepen customer engagement.

But it cautioned that if the underlying AI technology is similar, the expansion of generative AI use could erode product differentiation and pricing power among currently competitive companies. It also noted that some companies are already anticipating deflationary pricing pressure.

It named two stocks that are particularly at risk. CNBC Pro subscribers can read more here.

— Ganesh Rao

U.S. West Texas Intermediate crude fell to its lowest point in almost a month after some global manufacturing data showed weakness in the sector around the world.

WTI on Wednesday touched a low of 78.21. That’s the lowest level in about a month going back to July 24 when WTI traded as low as 76.44.

Meanwhile, Brent crude hit a low of 82.62, or its lowest level since August 3 when it traded as low as 82.36. RBOB Gas touched a low of 2.7235, also the lowest since August 3. It also dipped below its 50-day moving average level of 2.7247 on an intraday basis, trading below for the first time since July 7.

The Energy Select Sector SPDR Fund is trading lower in the premarket, on pace for its third straight losing day. Shares of Marathon, Devon and APA were all down about 1% in early trading.

— Sarah Min. Gina Francolla

Nike‘s loss of more than 3.5% in Wednesday’s session put the retailer on track for a 10th losing day, extending its historic slide.

On Tuesday, the stock finished its ninth straight session down with a 1.4% slide. That officially marked its longest losing streak ever.

Abercrombie & Fitch shares popped nearly 25% on Wednesday after the retailer blew past earnings estimates and raised its guidance. In the fiscal second quarter, Abercrombie reported earnings per share of $1.10, surpassing the 17 cents expected from analysts surveyed by Refinitiv. The retailer posted $935.3 million in revenue, while analysts expected $842.4 million.

Abercrombie’s retailer said that the chain—which has reinvented itself to serve a broader audience—will continue to open stores and invest in its digital experience. 

The stock is up more than 120% so far this year.

— Pia Singh