Hong Kong stocks rise 2% in mixed Asia session, Softbank shares drop 14%

Swiss bank UBS has forecasted a “sharp” disinflation in 2023.

It said weak growth alongside “mechanical” indicators, such as easing supply chain bottlenecks and rising goods inventories, would see prices fall next year.

The investment bank screened for stocks that would benefit from such an environment.

CNBC Pro subscribers can read more about their forecasts, and eight stocks we’ve highlighted from their list.

— Ganesh Rao

Shares of Chinese property developers listed in Hong Kong surged at the open following a local media report that a number of additional measures will be introduced to support the real estate market’s recovery.

Cifi Holdings rose 29.84%, Country Garden jumped 32%, Logan Group rose 38%, and Longfor Group jumped 22% early in the session, buoying the wider index.

The report said there would be financial support for real estate deals and projects, including loan extensions to developers.

Those measures “may generate notable market reactions without dramatically changing the current economic fundamentals,” Goldman Sachs economists said of the report in a Monday note.

—Jihye Lee

Shares of tech giant SoftBank Group plunged nearly 12% in Japan’s morning session after Vision Fund, the company’s tech investment vehicle, reported a loss of 1.38 trillion yen ($9.88 billion) for the quarter ending on Sept. 30.

“Share prices of numerous public portfolio companies declined amid the weakness in global stock markets, and the fair value of a wide range of private portfolio companies also decreased,” SoftBank said in its latest financial report.

SoftBank reported a net profit of 3.03 trillion yen after two quarters of losses.

— Abigail Ng

This year’s bear market has wiped trillions of dollars in market cap off the stock market, but a few stocks have outperformed significantly during this period.

Bank of America identified three retail stocks that bucked the trend, and says one remains a buy.

Pro subscribers can read more here.

— Zavier Ong

The Hang Seng index in Hong Kong closed its session last Friday 7.7% higher, seeing its best day since March 16, when the index rose 9.08%.

On a weekly basis, the index rose 7.2% as China eased Covid measures, after seeing a gain of 8.73% the previous week on rumors of China’s reopening plans.

The index is up almost 18% month-to-date and could post its best monthly performance since April 1999, when the Hang Seng index gained 21.85%.

— Gina Francolla, Jihye Lee