Friday 20th December 2024: Asia-Pacific Markets Slip Amid Inflation Data and China’s Rate Decision

Global Markets:

•  Asian Stock Markets : Nikkei down 0.09%, Shanghai Composite up 0.31%, Hang Seng up 0.18% ASX down 1.24%
• Commodities : Gold at $2612.35 (-0.14%), Silver at $29.04 (-0.38%), Brent Oil at $72.39 (-0.56%), WTI Oil at $69.04 (-0.39%)
• Rates : US 10-year yield at 4.560, UK 10-year yield at 4.5785, Germany 10-year yield at 2.304

News & Data:

• (USD) Final GDP q/q  3.1% vs 2.8% expected
• (USD) Unemployment Claims 220K vs 229K expected

Markets Update:

Asia-Pacific markets mostly declined on Friday as investors weighed inflation data from Japan and China’s interest rate decision. The People’s Bank of China maintained its loan prime rates, keeping the one-year rate at 3.1% and the five-year rate at 3.6%. The one-year LPR impacts corporate and household loans, while the five-year LPR influences mortgage rates.

Following the announcement, Hong Kong’s Hang Seng index edged up 0.11%, and mainland China’s CSI 300 rose 0.27%, reversing earlier losses. These were the only major Asian indexes in positive territory.

Japan released November inflation data, with core inflation (excluding fresh food prices) at 2.7%, slightly above the 2.6% forecast, and headline inflation reaching 2.9%, up from 2.3% in October. Despite this, Japan’s Nikkei 225 dipped slightly, and the Topix fell 0.11%.

South Korea’s Kospi dropped 1.87%, and the Kosdaq fell 2.33%, leading regional losses. Australia’s S&P/ASX 200 declined 1.36%, hitting its lowest intraday level since September at 8,051 before recovering slightly.

In the U.S., the Dow Jones Industrial Average narrowly broke its longest losing streak since 1974, gaining 0.04% on Thursday. However, the S&P 500 fell 0.09%, and the Nasdaq Composite dropped 0.10%. Meanwhile, the 10-year Treasury yield climbed for a second consecutive day, exceeding 4.5% and pressuring stocks, following a 13-point surge in the prior session.

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