Asia markets higher as Japan’s core inflation rises; China keeps benchmark lending rate unchanged

Abigail Ng

Shares in the Asia-Pacific rose Tuesday as Japan’s inflation accelerated and China kept its loan prime rate on hold.

Hong Kong’s Hang Seng index gained 0.91%, with the Hang Seng tech index up nearly 2%. The Shanghai Composite in mainland China rose 0.51% and the Shenzhen Component

advanced 0.58%. In Australia, the S&P/ASX 200 advanced around 1%. Japan’s Nikkei 225

rose 0.34% on its return to trade after a holiday and the Topix gained 0.37%.

The Kospi in South Korea added 0.37%, while the Kosdaq was 1.04% higher. MSCI’s broadest index of Asia-Pacific shares gained 0.71%.

Core inflation in Japan increased 2.8% from a year ago, the fastest rate of increase since late 2014. China’s loan prime rate was left unchanged Tuesday, in line with predictions in a Reuters poll.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE
.N225	Nikkei 225 Index	*NIKKEI	27636.65	69	0.25
.HSI	Hang Seng Index	*HSI	18711.46	145.49	0.78
.AXJO	S&P/ASX 200	*ASX 200	6779.7	59.8	0.89
.SSEC	Shanghai	*SHANGHAI	3126.07	10.47	0.34
.KS11	KOSPI Index	*KOSPI	2364.69	9.03	0.38
.FTFCNBCA	CNBC 100 ASIA IDX	*CNBC 100	7525.5	63.65	0.85

China keeps key lending rates unchanged

The People’s Bank of China kept its one-year and five-year loan prime rates (LPR) unchanged, in line with predictions in a Reuters poll.

The one-year loan prime rate remains at 3.65%, and the five-year rate closely tied to home mortgages stands at 4.3%. China cut both those rates last month.

— Abigail Ng

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Japan’s core inflation accelerates in August

Core consumer prices in Japan rose 2.8% in August from a year ago, government data showed.

That’s the fastest growth in nearly eight years, and the fifth consecutive month where inflation has exceeded the central bank’s target of 2%.

Analysts polled by Reuters predicted a 2.7% increase, and consumer prices gained 2.4% in July.

The Japanese yen strengthened slightly to 142.96 per dollar.

— Abigail Ng

Stocks finish Monday’s volatile session higher

Stocks seesawed on Monday but ended the session in positive territory as a big Federal Reserve week kicked off.

The Dow Jones Industrial Average closed 197.26 points higher, or 0.64%, to settle at 31,019.68. The S&P 500 jumped 0.69% to 3,899.89 and the Nasdaq Composite gained 0.76% to 11,535.02.

— Samantha Subin

10-year Treasury yield jumps above 3.5%, hits highest level since 2011

The benchmark 10-year Treasury yield rose to 3.5% on Monday morning, hitting its highest level since 2011 as investors brace for a higher-for-longer period of interest rates amid the Federal Reserve’s fight against inflations.

Treasury yields rose above the board last week after the August consumer price index report showed a surprise increase in prices. However, the 10-year largely held near its June highs of 3.495% before taking another leg higher on Monday.

The 10-year last traded at a yield of 3.506%, up nearly 6 basis points. Yields move opposite to price, and one basis point is equal to 0.01%.

— Jesse Pound

Source : CNBC