South Korea’s economy marks first contraction since 2020
South Korea’s gross domestic product declined 0.4% in the fourth quarter of 2022 compared to the previous quarter, marking the first contraction in two and a half years.
Private consumption dipped 0.4%, exports contracted by 5.8% and manufacturing fell by 4.1%, according to the Bank of Korea.
Government spending sharply increased 3.2% compared to third quarter’s 0.1% rise.
On a year-on-year basis, South Korea’s final quarter GDP gained 1.4% compared to a year earlier, slightly missing Reuters’ expectations of a 1.5% growth.
— Lee Ying Shan
CNBC Pro: Want to cash in on China’s reopening? Bank of America and UBS have some less obvious stock picks
Stocks in certain key sectors that are directly related to China’s reopening, such as domestic consumption and travel, have done well in recent months.
Investors looking for entry into these stocks may find them unpalatable at current valuations. But there could be another way to play the reopening, with Bank of America and UBS having identified a raft of less obvious beneficiaries outside of China.
Pro subscribers can read more here.
— Zavier Ong
CNBC Pro: Lithium’s got a strong year ahead of it — and China’s reopening will boost this stock, analyst says
Things are looking up for the electric vehicle industry, thanks to China’s reopening — particularly in the second half of the year, one analyst says.
Corinne Blanchard, vice president of lithium and clean tech equity research at Deutsche Bank, names one top stock pick.
— Weizhen Tan
Stocks finish mixed
Stocks were mixed Wednesday.
The Dow Jones Industrial Average rose 9.88 points, or 0.03%, to end at 33,743.84. The Nasdaq Composite dipped 0.18% to close at 11,313.36, and the S&P 500 dipped 0.02% to settle at 4,016.22.
— Samantha Subin
Microsoft shares shed after-hours gains, turn negative
Microsoft shares slid about 1% in after-hours trading, reversing earlier gains.
Shares were initially higher after the company posted quarterly earnings per share that beat the Street’s expectations. However, investors’ sentiment soured after Microsoft issued disappointing guidance for revenue in the current quarter on its earnings conference call.
The company forecasted $50.5 billion to $51.5 billion in fiscal third quarter revenue, while analysts surveyed by Refinitiv anticipated $52.43 billion.
Read more about Microsoft’s results here.
–Darla Mercado, Jordan Novet