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Asia-Pacific markets rise after Wall Street continued its slide

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Australian dollar, Japanese yen weaker against the dollar after overnight moves

The Australian dollar was weaker against the greenback early in Asia after a sharp move higher overnight.

The Aussie was trading at $0.6910, following a jump above $0.6950.

“A weaker USD and higher commodity prices likely contributed to AUD gains,” Carol Kong, a senior associate for international economics and currency strategy at Commonwealth Bank, wrote in a note.

The dollar index fell after the August flash readings for S&P Global’s Purchasing Managers Index missed expectations, and last stood at 108.695.

Japan’s yen was at 136.87 per dollar after strengthening to 135.93 overnight.

— Abigail Ng

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Morgan Stanley says the ‘smart’ EV industry is tech’s next big thing. Here are its top stock picks

Morgan Stanley says tech supply chains are about to experience growth in the next big thing: smart tech features — from EV batteries to chips and self-driving tech.

The investment bank named its top stock picks that’s set to benefit from this trend.

Pro subscribers can read the story here.

— Weizhen Tan

Fed’s Kashkari says his biggest fear is inflation will be more persistent or hotter than anticipated

Federal Reserve bank of Minneapolis President Neel Kashkari says his biggest fear is that markets are underestimating how high inflation will go or how persistent it would be, adding that the Fed might need to be more aggressive than anticipated.

“The big fear I have at the back of my mind is if we’re wrong and markets are wrong, and that this inflation is much more embedded at a much higher level than we appreciate or markets appreciate,” he said, commenting on market expectations of inflation coming back down to 2% within the next two years.

“Then we’re going to have to be more aggressive than I anticipate, probably for longer, to bring inflation back down,” he said, speaking at an event at the University of Pennsylvania.

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Kashkari also pointed towards supply-side shocks driving “half to two-thirds” of the nation’s high inflation.

“The more help we get from the supply side, the less the Fed has to do, and the better we’re able to avoid a hard landing,” he said. He did add, however, there’s some evidence that supply chains are beginning to normalize.

Kashkari is already considered the most hawkish of the U.S. central bank’s 19 policymakers, and expects the Fed to need to lift its policy rate — now at a target range of 2.25% to 2.5% — another two full percentage points by the end of next year.

–Jihye Lee

CNBC Pro: Citi names the energy stock with the ‘strongest balance sheet’

The energy sector has been a big winner in this year’s volatile stock market.

But one stock still stands out for its “strongest balance sheet,” according to Citi. It also delivered a set of second-quarter earnings that handily beat its major listed peers.

Pro subscribers can read the story here.

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— Zavier Ong

Source: CNBC

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