Asia-Pacific stocks are struggling for direction ahead of the BoJ interest rate decision

Japanese core production orders for November fell more than expected

According to official data, Japanese private sector production orders fell 8.3% in November compared to the previous month.

The drop was significantly greater than Reuters’ expectations of a 0.9% decline. On a year-over-year basis, production orders fell 3.7%.

Private sector machinery figures exclude orders from volatile orders for ships and electric utilities.

— Lee Ying Shan

CNBC Pro: Thinking of Jumping Back into Big Tech? This investor is wary of 2 stocks in particular

CNBC Pro: Morgan Stanley says cheaper EVs are coming – and names the global stocks that will benefit

As electric cars become more popular, Morgan Stanley says there is interest in a new manufacturing technique that could make them more affordable.

Some automakers are outsourcing the process, which could benefit three leading Asian parts suppliers, the Wall Street bank said.

CNBC Pro subscribers can read more here.

— Ganesha Rao

Stocks end the day mixed, Dow falling nearly 400 points

The Dow Jones Industrial Average index fell at the end of the day as Goldman Sachs stock weighed on the stock index.

The Dow lost 391.76 points, or 1.14%, to close at 33,910.85. The S&P 500 fell 0.2% to 3,990.97. The Nasdaq Composite gained 0.14% to end the day at 11,095.11.

— Tanaya Macheel

Bank of America sees a later onset of the recession

A recession is now unlikely to begin until later in 2023, as consumer spending is stronger than expected and the Federal Reserve eases the intensification of its rate hikes, according to Bank of America.

“We are adjusting the timing of our outlook for a mild recession in the US economy by about a quarter given continued consumer spending driven by strong labor markets, excess savings, falling energy prices and easier financial conditions,” the company said in a press release. a customer note. “That said, we think the headwinds will lead consumers to reduce their spending and increase the savings rate as the year progresses.”

That brings the recession into the second quarter, driven by an investment-induced slowdown that spills over into consumer spending.

After raising the benchmark interest rate by 4.25 percentage points in 2022, the Fed is expected to ease, rising 0.25 percentage points in February. That is expected to be followed by additional quarter-point increases in March and May.

Rate cuts probably won’t come until 2024, the company said.

—Jeff Cox

Goldman Sachs shares plunge on earnings failure

Shares of Goldman Sachs fell 2.4% after the Wall Street investment bank shared fourth-quarter earnings numbers that beat analysts’ expectations on both the top and bottom lines.

The bank reported earnings of $3.32 per share on revenues of $10.59 billion. Consensus estimates called for earnings of $5.48 per share on revenue of $10.83 billion, according to analysts polled by Refinitiv.

Loan loss provisions also came in slightly above expectations.

— Hugh Son, Samantha Subin