Wall Street, Reserve Bank of Australia, interest rates

Beijing city announced negative Covid tests will no longer be required to enter most public areas, malls or residential areas, while bars and so-called KTV lounges, or karaoke bars.

Separately, Reuters reported on Monday that China could announce a further relaxation of Covid curbs as early as Wednesday, citing two sources with knowledge of the matter.

The report said there would be 10 new measures in addition to the 20 that were put out in November.

Several cities in China relaxed Covid testing rules in recent days.

— Evelyn Cheng, Abigail Ng

Apple supplier Foxconn, also known as Hon Hai Precision Industry, reported its monthly revenue for November fell over 11% compared to the same period last year.

Revenue for the month totaled 551.1 billion new Taiwan dollars ($18 billion), and was down more than 29% versus October.

The Taiwanese firm said the fall was due to “production gradually entering off-peak seasonality and a portion of shipments being impacted by the epidemic in Zhengzhou,” where the company runs the world’s largest iPhone assembly plant.

Shares of the company dropped 1.48% in Asia’s morning.

– Arjun Kharpal

Australia’s central bank is expected to raise its cash rate by 25 basis points to 3.1% on Tuesday, according to economists polled by Reuters.

That would be the Reserve Bank of Australia’s eighth hike this year, and the third consecutive hike of 25 basis points since October.

In a statement following its November meeting, the RBA said “the full effect” of the series of cash rate hikes lie ahead.

Meanwhile, Matt Simpson, senior market analyst at City Index, said there’s potential for a pause in rate hikes further ahead.

“The case for a pause is certainly building,” he said. “Some measures of inflation expectations are moving lower, and the monthly inflation print suggests inflation has peaked.”

Inflation in Australia remains well above the RBA’s target of between 2% and 3%, though it saw slight easing in October, according to the central bank’s monthly consumer price indicator.

— Charmaine Jacob

Stocks finished lower Monday as fears mounted that the Federal Reserve will continue hiking rates.

The Dow Jones Industrial Average slid 482.78 points, or 1.4%, to finish at 33,947.10. The S&P 500 shed 1.79% to settle at 3,998.84, while the Nasdaq Composite tumbled 1.93% to close at 11,239.94.

— Samantha Subin