Latest Updates: Samsung Quarterly Profits Hit Three-Year High As Chip Tightening Continues

Most Asian markets fell on Thursday morning after U.S. equity markets retreated from record highs.

The markets of Japan, China, Hong Kong and Australia all fell, while South Korea made small gains.

In the United States, the benchmark S&P 500 fell 0.5% on Wednesday from Tuesday’s record close, with tech groups and consumer stocks, including Amazon, the only sectors to gain ground.

The technology-rich Nasdaq Composite was flat. The yield on the 10-year US Treasury bill fell 0.07 percentage point to 1.54 percent.

• The Australian S & P / ASX 200 lost as much as 0.6% on Thursday.

• South Korea’s Kospi was flat after gains of up to 0.3% in the morning.

• Japan’s Topix was down 0.7% after earlier losses of up to 1.3%.

• China’s CSI 300 fell 0.2% after earlier losses of 0.6%.

• Hong Kong’s Hang Seng Index fell 0.5%.

Thermal coal futures traded on the Zhengzhou Commodity Exchange fell to their lowest level in more than a month on Thursday after China’s Economic Planning Agency announced it would send teams of inspection in mines, fueling fears of price caps.

Thermal coal futures fell 13% to trade at 1,339 Rmb ($ 209), adding to the 9.5% losses the day before, according to data from Refinitiv.

On Wednesday, the NDRC announced that it would send inspection teams to coal mines, storage facilities and transit points and maintain a “zero tolerance” approach to “regions and companies that have not. strictly implemented the requirements for coal supply and price stability “.

The announcement came after weeks of shortages and price spikes that saw the country increase its imports to avoid power cuts. Last week, the NDRC summoned coal producers and warned them against seeking “excessive profits.”

Samsung Electronics expects the global chip crisis to continue to affect its business next year, after posting its highest quarterly profit in three years.

The world’s largest maker of computer chips, smartphones and electronic displays benefited from the memory boom during the Covid-19 pandemic, but microchip prices have recently come under pressure as the work-from-home boom fades and economies reopen.

The South Korean company’s net profit jumped 31% to 12.3 billion won ($ 10.4 billion) in the July-September quarter, as sales rose 10% to a record 74 billion won.

“For the fourth quarter, the company will focus on meeting demand for memory and system semiconductor products, although component shortages at some customers may affect demand,” Samsung said.

For next year, the company expects a pickup in global IT demand, but has warned of “uncertainties over component supply disruptions and Covid-19.” Samsung expects demand for home appliances to weaken next year, as people are likely to spend less time at home with “living with Covid-19” policies.

The negative outlook affected the company’s shares, which have lost more than 10% this year, with analysts predicting memory chips could enter a bearish cycle.

Brazil’s central bank has announced its biggest interest rate hike since 2002, stepping up the fight against double-digit inflation as investors fear a madness in government pre-election spending.

The most populous country in Latin America is seeing some of the biggest price hikes among major economies, due to factors like rising fuel costs, a weakened exchange rate and a drought that has driven up bills of energy.

The Banco Central do Brasil, or BCB, took a hawkish stance and accelerated the pace of the tightening on Wednesday.

Its monetary policy committee unanimously decided in favor of a 1.5 percentage point jump, down from 1 percentage point in the previous two meetings, bringing the benchmark Selic rate to 7.75%.

The BCB has indicated that it expects an adjustment of the same magnitude at its next meeting.

To learn more about Brazil’s political decision, click here.

Ford’s board of directors voted to reinstate the dividend the company stopped paying at the start of the pandemic next quarter.

The Michigan-based automaker also raised its full-year forecast for the second time, despite falling third-quarter revenue and profits.

Ford said it now plans to post earnings before interest and taxes of between $ 10.5 billion and $ 11.5 billion. The previous outlook peaked at $ 10 billion.

Ford said semiconductor availability “remains a challenge” in the face of a global shortage, but has improved since the second quarter.

“We are maximizing what we have,” said John Lawler, chief financial officer.

Revenue fell 5% from the third quarter a year ago to $ 35.87 billion. Adjusted profit before income and taxes fell nearly 17% to $ 3 billion.

News from the central bank: The Bank of Japan will release its report on economic activity and price outlook, as well as monthly retail sales figures. He will also announce his monetary policy statement.

Earnings: Big day for tech profits in Asia, with Nokia, Panasonic, Samsung and Sony. Electric vehicle maker BYD Co will also release its third quarter results, as will Agriculture Bank of China and PetroChina.

Southeast Asia data: Singapore releases third quarter unemployment rate and Malaysia releases monthly trade balance figures

U.S. equity markets retreated from their all-time high on Wednesday as good results from tech giants were not enough to offset weakness in the rest of the market.

The benchmark S&P 500 fell 0.5% from Tuesday’s record close, with tech groups and consumer stocks, including Amazon, the only sectors to make gains. The technology-rich Nasdaq Composite was flat.

Energy stocks were the main drivers of the declines, as oil prices retreated from recent highs.

Microsoft and Google’s parent company Alphabet were on the bright side, jumping 4% and 5% respectively after smashing analysts’ forecasts with third-quarter results released after the closing bell Tuesday night.

The yield on the 10-year US Treasury bill fell 0.07 percentage point to 1.54 percent.

Elsewhere in North America, the Bank of Canada rocked the markets by abruptly ending its bond buying program and signaling that it could raise interest rates by the middle of next year. , becoming the last central bank to respond to stubbornly high inflation with a hawkish policy shift. .

Canadian two-year government bond yields, which are sensitive to interest rate expectations, jumped 0.21 percentage points to 1.07%. The prospect of higher rates helped the Canadian dollar gain 0.3% against the US dollar to trade at C $ 1.24.

Learn more about today’s market movements here.