Reserve Bank of Australia, China inflation, K-pop, Bank of Japan

Shares of this global fintech company are expected to more than double in a year, according to a number of analysts.

Bank of America has a rare 216% upside price target on the stock. Even the consensus price target points toward a 143% share price gain over the next 12 months.

Analysts say the company’s high brand recognition means its marketing costs will fall helping to boost profitability in the near future.

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— Ganesh Rao

China’s consumer prices rose 2.1% in January compared to a year ago, marking the fastest pace in three months, government data showed.

The reading comes in lower than estimates forecasted by economists in a Reuters poll that had expected to see a 2.2% rise in prices.

On a monthly basis, prices rose 0.8% in January, a higher rate than expectations.

Prices are seen to have picked up alongside resumed consumer activity with China’s reopening after more than two years of Covid-zero policy.

– Jihye Lee

Australia’s central bank on Friday said inflation remains high and hinted at further interest rates hikes.

This comes after the Reserve Bank of Australia raised interest rates by 25 basis points on Tuesday, bringing its cash rate to a 10-year high of 3.35%.

In its quarterly monetary statement, RBA observed global inflation is still very high but “looks to have peaked.”

Still, the easing in global goods price pressures hasn’t shown in domestic retail prices, RBA said, noting that inflation for consumer durables, services and rents picked up in the December quarter.

“The Board expects that further increases in interest rates will be needed to ensure that the current period of high inflation is only temporary,” said RBA.

The central bank’s forecast is for CPI to decline to 4.75% over 2023 and to around 3% by mid-2025.

— Lim Hui Jie

Japan’s wholesale prices rose 9.5% in January from the previous year, slightly lower than the revised figure of 10.5% recorded in December 2022.

The increase in the corporate goods price index (CGPI) was also lower than Reuters estimates, which forecasted a 9.6% gain.

The CGPI measures the price companies charge each other for their goods and services.

— Lim Hui Jie

Shares tied to the K-pop industry popped at open, following Hybe’s announcement to acquire shares of SM Entertainment.

SM Entertainment jumped more than 16%, Hybe rose 6% in Seoul’s first hour of trade. JYP Entertainment rose 2.5% and YG Entertainment also rose 3.8% at the open.

– Jihye Lee

Hybe, the K-pop agency behind boy band BTS, announced in a filing to acquire 3.5 million shares of rival SM Entertainment worth 422.8 billion won ($334.2 million).

The filing said Hybe acquired the shares held by SM’s founder Lee Soo-man – to hold a 14.65% stake in the company, making Hybe the largest shareholder of SM Entertainment.

Hybe said the deal is targeted at “raising [Hybe’s] competitiveness in the K-pop industry.”

– Jihye Lee

The Japanese government is looking to present nominations for the next Bank of Japan’s governor on Feb. 14, Kyodo reported, citing government sources.

The ruling Liberal Democratic Party is expected to discuss the timeline of the nomination with the opposition party later on Friday, the report said.

The move is seen to be a delayed process following previous reports the nomination may be announced as early as today.

– Jihye Lee

The sell-off intensified with less than an hour left in the trading day.

All three indexes reached session lows. The Dow was down more than 250 points, or 0.8%, while the S&P 500 traded just under 1% down. The Nasdaq Composite, the worst performer of the three, was more than 1.1% down at its new low.

Fourth-quarter results for both Wynn Resorts and MGM Resort International show that Las Vegas is heating up, according to Wall Street analysts.

Both casino operators reported revenue that beat expectations, with Wynn’s $1 billion coming above Refinitiv’s estimate of $958 million and MGM’s $3.59 billion topping estimates of $3.35 billion.

Several analysts cheered the results, with Jeffries titling its report on Wynn’s earnings, “Las Vegas Is Starting to Sizzle.”

“The strength in Las Vegas coupled with the early stage recovery in Macau are supportive of the strong momentum of late. The commentary supports further positive progression in estimates for both markets, which we believe should drive a positive reaction in the shares,” analyst David Katz wrote in a note Tuesday.

Meanwhile, Deutsche Bank hiked its price target on Wynn to $128 per share from $106, as well as its price target on MGM to $53 from $49 per share.

“We believe the 2023 outlook for Las Vegas remains solid, with near-term strength evident in bookings. We see the return of capital story as compelling and differentiated, with the equity value creation from Macau accelerating,” analyst Carlo Santarelli said in a note Thursday.

Shares of Wynn were up more than 6%, while MGM rose nearly 8%.

— Michelle Fox

Toyota shares were up more than 1% on Thursday after the company’s third-quarter earnings, revenue, and operating profit beat analyst expectations.

The Japanese automaker announced earnings of 53.40 yen, topping the consensus estimate of 49.55 yen from analysts polled by FactSet. The company’s posted 9.755 trillion yen in revenue versus the 9.257 trillion yen anticipated by analysts.

Operating income in the third quarter jumped 22% year-on-year, coming in at ¥956.65 billion.

Meanwhile, Toyota’s net profit fell to 745 million yen, from the 819 million yen reported in the same period in the previous year.

Toyota said that a weak Japanese Yen and higher sales volume offset rising prices of materials.

— Hakyung Kim

First-time filings for unemployment benefits rose more than expected last week but held at comparatively low levels.

Jobless claims for the week ended Feb. 4 totaled 196,000, an increase of 13,000 from the previous period and above the Dow Jones estimate for 190,000. It was the fourth week in a row that claims were under 200,000 after the most recent peak of 241,000 in mid-November.

Continuing claims also rose, up 38,000 to 1.688 million, a number that has trended higher since the beginning of the year.

Markets showed little initial reaction to the claims data.

—Jeff Cox