Japan’s Nikkei leads losses in Asia as investors fear the Fed could hold off rate cuts; oil

Japan is likely to intervene if the yen weakens past the 152 level against the U.S. dollar, according to a former top currency official.

Tatsuo Yamazaki, who oversaw Japan’s 35 trillion yen intervention campaign to weaken the currency in 2003 through 2004, told Reuters in an interview that once the dollar climbs above 152 yen, the pair’s rise could accelerate and offer an opportunity for authorities to intervene.

On Thursday, Hiroshi Watanabe, Japan’s top currency diplomat from 2004 to 2007, said authorities will not intervene until the yen crosses 155 against the greenback.

The yen was trading at 151.17 on Friday.

The Bank of Korea is considering extending the timeframe and offering visual estimates for how it gives forward guidance on policy interest rates, Reuters reported citing sources familiar with the matter.

The central bank largely issues verbal forward guidance, and the move would mark a significant change to how the central bank conveys policy.

The proposal, which is an attempt to boost transparency, faces opposition from at least one of the central bank’s governing board and a senior official, the report stated.

—Lee Ying Shan, Reuters

HSBC and Standard Chartered’s Hong Kong-listed stocks rose Friday after the banks announced stock buybacks in London.

HSBC said it has bought back about 3.36 million of its shares at an average price of 6.4016 pounds, or $8.08, while StanChart bought back 1.14 million shares at an average price of 7.07 pounds.

Shares of StanChart in Hong Kong climbed 2.61%, while HSBC shares rose 2.12%.

— Lim Hui Jie

Hong Kong’s private sector activity expanded for the first time since December, according to private surveys from S&P Global.

The city’s purchasing manager’s index came in at 50.9 in March, up from 49.7 in February.

S&P Global noted that incoming new business returned to growth, resulting in Hong Kong private sector firms raising their employment and inventory levels at accelerated rates.

But the report also said that business sentiment deteriorated, with firms generally concerned that subdued economic conditions and heightened competition may further dampen sales in 2024.

— Lim Hui Jie

Samsung Electronics on Friday said it expects to report a 931% jump in first-quarter operating profit amid a recovery in memory chip prices.

Operating profit in the three months ending March likely rose to 6.6 trillion Korean won, or $4.89 billion, exceeding LSEG analysts’ expectation of 5.24 trillion won. Profit in the same period a year ago was 0.64 trillion won.

Memory chip prices saw a drastic fall due to excess inventories post-Covid while the smartphone and PC markets was affected by weak demand.

Samsung shares were down 1.06% during morning trading.

— Sheila Chiang

Japan’s average household expenditure fell for a 12th straight month in February, though it was the slowest rate of decline in a year.

Average household expenditure in Japan fell 0.5% year on year, compared with a 3% decline expected by economists polled by Reuters, and a much less than January’s 6.3% drop.

Separately, real wages in Japan slipped in February, with the average monthly income per household at 561,495 yen.

This was up 0.7% in nominal terms, but down 2.5% in real terms from the previous year. Japan’s unions secured generous wage hikes in the “shunto” wage negotiations in March, which is expected to lead to higher consumer spending.

— Lim Hui Jie

Analysts have become more bullish on six stocks from around the world this week, raising their price targets.

The price target changes come ahead of the next earnings season covering the first quarter of this year.

CNBC Pro screened for global stocks that have received price target upgrades from five or more analysts in the past seven days and have a potential upside of over 25%.

CNBC Pro subscribers can read more about the six stocks here.

— Ganesh Rao

Portfolio manager Barbara Doran has revealed a number of her favorite stocks, reiterating a bullish outlook on the stock market more broadly.

“People are reluctant to embrace this bull market after a couple of years of deep skepticism. But this is what bull markets do. They make new highs,” she told CNBC.

Her top picks include top-performer Nvidia, embattled aerospace giant Boeing and more.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Crude oil futures rose Thursday, recouping losses from earlier in the session as tensions in the Middle East continue to mount.

The West Texas Intermediate contract for May delivery gained $1.16, or 1.36%, to settle at $86.59 a barrel. The Brent contract for June delivery advanced $1.30, or 1.45%, to $90.65 a barrel. It was the highest settle for both since Oct. 20.

The Jerusalem Post reported that Israeli embassies had been put on high alert after Iran vowed retaliation over a missile strike on its consulate in Damascus earlier this week. Israel Defense Forces have cancelled home leave for combat troops amid mounting tensions with Tehran, according to the Times of Israel.

Oil prices have rallied this year, booking three consecutive months of gains with U.S. crude adding nearly 21% while Brent is up 7.7%. The rally has been driven by mounting geopolitical tensions and a tightening global crude market.

— Spencer Kimball

Minneapolis Federal Reserve President Neel Kashkari on Thursday expressed caution that interest rate cuts might not happen this year unless there’s more progress on inflation.

“If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all,” Kashkari said during an interview with Pensions & Investments, according to a Reuters account. “There’s a lot of momentum in the economy right now.”

Kashkari, a nonvoter this year on the Federal Open Market Committee, is the second central banker this week to dampen rate-cut talk. On Wednesday, Atlanta Fed President and FOMC voter Raphael Bostic said on CNBC that he envisions just one cut this year, and likely not until the fourth quarter.

—Jeff Cox

Richmond Federal Reserve President Thomas Barkin added to the recent cautionary tone from monetary policymakers, saying Thursday that a strong economy gives time to watch the inflation data for progress.

“While I don’t see the economy overheating, the Fed knows how to respond if it does. And, if the economy slows, the Fed has enough firepower to support it as necessary,” Barkin said during a speech in his home district. “In the interim, I think it is smart for the Fed to take our time.”

Noting that inflation data this year has been “a little less encouraging,” he said the strong labor market and macro economy allow Fed officials “time for the clouds to clear” before cutting.

—Jeff Cox