Hong Kong stocks gain 3% as China vows support for ailing property market

Andrew Tan, Muzinich’s Asia-Pacific CEO, says private credit is a “very dependable, defensive product.”

Hong Kong’s Hang Seng index surged almost 3% in early trading, led by real estate stocks rebounding after China vowed more support for its beleaguered property sector.

Real estate developer Longfor Group jumped almost 20% and was the biggest gainer on the index, while property management firm Country Garden Services Holdings surged 17.54%.

Hong Kong tech names were also part of the top gainers on the index, with the Hang Seng Tech index climbing 4.57% and led by electric vehicle makers. Chinese EV maker Xpeng saw a 12.75% gain, while Nio climbed 9.79%.

South Korea’s gross domestic product grew 0.9% year-on-year in the second quarter of 2023, according to advance estimates.

This was unchanged from the 0.9% seen in the first quarter, and beat the 0.8% estimate by economists polled by Reuters.

On a quarter to quarter basis, South Korea’s GDP grew 0.6%, the largest quarterly growth seen since the second quarter of 2022.

— Lim Hui Jie

As the S&P 500‘s year-to-date rally nears 20%, some investors have questioned whether stocks could be nearing a tipping point.

Other potential risks on the horizon include the yield curve inversion — believed by many to be a signal of recession — this week’s U.S. Federal Reserve rate decision, and inflation numbers due next month.

So how should investors allocate their portfolios in this environment? Here’s what Citi, TS Lombard and the Wells Fargo Investment Institute advise.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Dividend growth is often a key factor for investors seeking stable returns, and four global companies are notable for their consistent — and significant — payout increases.

One of the stocks, a multinational food and beverage company, has consistently raised dividends by more than 10% since 1993. Another has seen its share price rise by more than 4,000% in price returns, in addition to its consistent dividend payments.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Bank of America has named multiple European “top stocks” it says are of “good value, low risk” and “high quality.”

All of them turned up on “recession screens” for July, in a market BofA described as a being in a recession style cycle. A style cycle refers to the relationship between economic cycles and investment styles, the bank said in a research note dated July 19.

CNBC Pro subscribers can read more here.

— Lucy Handley

Federal Reserve officials are likely going to need more evidence before declaring victory on inflation, according to a Wall Street Journal report.

Citing economists and Fed officials, the Journal noted that the decline in the inflation rate could be temporary, mirroring concerns policymakers had when inflation was rising and also appeared to be temporary.

The uncertainty about inflation has spread to the White House, where one of its top economists, Jared Bernstein, told CNBC last week that, “Our work is not done.”

Underscoring its commitment to bringing inflation down further, the Fed is expected to enact another quarter-point rate hike this week. Investors will be listening carefully to Chairman Jerome Powell for more clues as to where policy is heading.

—Jeff Cox

West Texas Intermediate oil may close above its 200-day moving average ($77.14) Monday for the first time since last August. Already, the September contract reached $77.85 a barrel Monday, the highest since April 26.

September Brent contracts, the global oil benchmark, hit $81.84 early Monday, the highest since April 25.

August RBOB gasoline contracts (the RBOB stands for Reformulated Gasoline Blendstock for Oxygenate Blending), which is the U.S. standard, climbed to $2.8403 a gallon Monday, the highest since April 14.

Meanwhile, the Energy Select Sector SPDR Fund is up 0.8% early Monday, adding to the 4% rally…