Japanese travel stocks jump after reports of drop in group travel rule
The United States will expand limitations on exports of chips and tools to China, Reuters reports
The U.S. Commerce Department plans to release new regulations related to restricting exports of chip-making equipment to Chinese factories that produce advanced semiconductors, Reuters reported, citing people familiar with the matter.
The rules will be based on letters sent to KLA, Lam Research and Applied Materials earlier this year, when they were told that government-issued licenses would be needed to sell such equipment to buyers who make chips using processes smaller than 14 nanometers .
The new regulations would likely include additional actions against China, sources told Reuters, adding that they could be changed and published later than expected.
– Jihye Lee
Economic consultancy lowers New Zealand growth forecasts
Economists at the New Zealand Institute of Economic Research downgraded the country’s growth outlook, citing continued inflation and high interest rates.
They now expect annual gross domestic product for 2022-2023 to grow by 2.5%, down from their previous forecast of 2.9%.
GDP for the period 2023-2024 is now expected to grow by 1%, a sharp reduction from its previous forecast of a 1.9% increase published in June, while the 2024-2025 forecast is revised to 1.5% from 2.1%.
– Jihye Lee
CNBC Pro: Sterling has been closing in against the dollar. Here’s how low it could go, according to the pros
Yen intervention unlikely to be effective: National Australia Bank
Unilateral government intervention on the Japanese yen is unlikely to be effective, the National Australia Bank said, after officials said over the weekend that the government must take action to address the yen’s excessive falls.
“If the [Bank of Japan] really want to stop the JPY falling, then they need to make changes to their ultra-easy policy, the pressure is on,” a currency strategist at National Australia Bank wrote in a note on Monday.
The yen last traded at 142.55 against the dollar.
—Abigail Ng