News Briefs (2022-09-24)

Asia-Pacific

shares drop

Asia-Pacific shares fell on Friday as investors continue to weigh the Federal Reserve's aggressive stance. In Australia, the S&P/ASX 200 fell to its lowest levels since July on its return to trade after a holiday on Thursday, then recovered some losses to close 1.87 per cent down at 6,574.70. South Korea's Kospi dipped 1.81 per cent to 2,290. Hong Kong's Hang Seng index lost 1.18 per cent in the final hour of trade. Mainland China stocks were also lower, with the Shanghai Composite shedding 0.66 per cent to 3,088.25 and the Shenzhen Component losing 0.972 per cent to 11,006.41. MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.35 per cent. Japan markets were closed for a holiday Friday. Elsewhere in Asia, inflation in Malaysia came in in line with expectations, while Singapore's consumer price index rose more than expected. The Straits Times index extended losses after the announcement and was 1.14 per cent lower in afternoon trade. — CNBC

Goldman Sachs

lowers 2022

target for S&P 500

Goldman Sachs has cut its year-end 2022 target for the benchmark S&P 500 index by about 16 per cent to 3,600 points, as the US Federal Reserve shows little signs of stepping back from its aggressive rate-hike stance. Analysts at Goldman Sachs wrote in a note late Thursday that the expected path of interest rates by the central bank is now higher than its previous estimate. Their previous target was 4,300 points. The benchmark index last closed at 3,758 points. "Based on our client discussions, a majority of equity investors have adopted the view that a hard landing scenario is inevitable and their focus is on the timing, magnitude and duration of a potential recession and investment strategies for that outlook," wrote Goldman analyst David Kostin. — Reuters

SoftBank cuts

Oyo's valuation

to $2.7b

SoftBank, the largest investor in Oyo, has cut the Indian hotel chain's valuation to $2.7 billion at a time when the startup is months away from going public, a source familiar with the matter said. An Oyo spokesperson said the startup has improved its finances in recent months, and it believes the speculation about a valuation cut is inaccurate. The markdown makes "no rational basis," the spokesperson added. SoftBank declined to comment. Oyo -- whose backers include Sequoia India and Lightspeed Venture Partners India, Airbnb and Microsoft -- was valued at about $10 billion in a round in 2019. Oyo has raised $3.23 billion in equity and debt funding rounds over the years, according to insight platform Tracxn.

— techcrunch.com