Live updates, Japan earthquake, China Caixin PMI

Indonesia’s headline inflation rate came in at 2.61% in December, slightly lower the 2.72% expected by economists polled by Reuters.

The inflation rate, was also less than the 2.86% recorded the month before.

Core inflation stood at 1.8%, lower than the 1.85% expected in the Reuters poll and marking the lowest since December 2021, according to data from Reuters.

Indonesia central bank has set an inflation target of 1.5% to 3.5% in 2024, slightly lower than the 2-4% range in 2023.

— Lim Hui Jie

The Dutch government has partially revoked semiconductor equipment maker ASML‘s export license to China for two of its systems used in manufacturing advanced chips.

“A license for the shipment of NXT:2050i and NXT:2100i lithography systems in 2023 has recently been partially revoked by the Dutch government, impacting a small number of customers in China,” said ASML in a statement.

NXT:2050i and NXT:2100i are deep ultraviolet lithography machines used in the volume production of the most advanced logic and memory chips.

The company said it does not expect the move to have a material impact on its financial outlook for 2023.

ASML has been restricted by the Dutch government from exporting its extreme ultraviolet lithography machines to China, in a bid to contain China’s chip making tech. ASML has not shipped the equipment to China so far.

— Sheila Chiang

A private survey showed manufacturing activity in China expanded in December, at odds with a similar survey conducted by the country’s statistics bureau that reported a contraction.

The Caixin manufacturing purchasing managers’ index came in at 50.8 in December, according to a release Tuesday, following a 50.7 reading for November. China’s official PMI fell to 49.0 in December from 49.4 the previous month, the country’s National Bureau of Statistics said in a Sunday release.

A PMI reading above 50 indicates expansion in activity, while a reading below that level points to a contraction.

— Clement Tan

Singapore’s economy grew 2.8% year-on-year in the final quarter of 2023, according to advance estimates from the country’s Ministry of Trade and Industry.

This was a sharp increase from the 1% expansion recorded in the third quarter, and the fastest rate of growth since the third quarter of 2022.

On a quarter-on-quarter seasonally-adjusted basis, the economy expanded by 1.7%, a larger expansion than the 1.3% in the third quarter.

Read the full story here.

— Lim Hui Jie

China’s manufacturing activity contracted further in December 2023, in a sign that more policy support was likely needed to revive its economy.

Official data released over the weekend showed China’s manufacturing purchasing managers’ index was at 49 in December, contracting for the third straight month and more than a Reuters poll forecast of 49.5.

A PMI reading below 50 signifies a contraction.

December’s PMI was also the sharpest contraction in manufacturing since June 2023, falling further from a November reading of 49.40.

The Caixin manufacturing survey for December is due later in the day.

— Shreyashi Sanyal

Australia’s factory activity in December saw its sharpest contraction since May 2020, according to private surveys from Judo Bank.

The country’s manufacturing purchasing managers’ index slid to 47.6 in December, down from 47.7 in November and marking its 10th straight month of contraction.

In its release, the bank wrote that this was mainly due to a further deterioration in demand from the country’s manufacturing sector, with incoming new orders for Australian manufactured goods falling for a 13th straight month.

This was because of soft economic conditions and pressure from high interest rates, with the bank adding that foreign demand was also subdued.

— Lim Hui Jie

From family offices to financial advisors and beyond, interest in alternative assets appears to be growing — but the pros appear mixed on whether retail investors should get invested.

For Caesar Sengupta, CEO of financial services firm Arta Finance, there is “incredible value in private markets” and the assets shouldn’t be overlooked.

Elsewhere, Saxo’s chief investment officer Steen Jakobsen argues that retail investors need to err on the side of caution when dabbling in alternatives.

“I think you need to be more than a private retail investor to go into these — my advice is don’t buy it, even if it’s priced to perfection,” he said, adding what asset classes he is bullish on for 2024.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Energy stocks may have had a tough year, but Goldman Sachs sees promise in European Big Oil – naming integrated oil stocks to play the theme in the new year.

“We are currently at a turning point as EU Big Oils started to outperform U.S. Big Oils, to potentially close their 40% valuation gap against their U.S. peers,” the investment bank’s analysts said.

The investment bank’s positive outlook on Big Oil comes even oil prices were pushed up as major shipping lines and oil transporters suspended travel through the Red Sea. The 2024 outlook for oil has also been underwhelming, with the International Energy Agency expecting the slowdown to continue next year.

Even so, Goldman noted that “EU Big Oils now screen as attractive thanks to enhanced buyback programs, leading to double digit cash returns to shareholders,” naming its top picks to play.

CNBC Pro subscribers can read more here.

— Amala Balakrishner