- December 20, 2024
- By: Admin1_blog
- Asia Market, Indices
Lim Hui Jie
Asia-Pacific markets mostly fell on Friday as investors digest inflation data out of Japan, as well as an interest rate decision out of China.
The People’s Bank of China held its loan prime rates steady on Friday, leaving the one-year rate unchanged at 3.1% and the five-year rate at 3.6%.
The one-year LPR influences corporate loans and most household loans in China, while the five-year LPR serves as a benchmark for mortgage rates.
Hong Kong’s Hang Seng index was flat in its final hour of trade, while mainland China’s CSI 300 dropped 0.45% to close at 3,927.74.
Japan also released its November inflation numbers, a day after the Bank of Japan held rates at 0.25%.
The core inflation rate in the country — which strips out prices of fresh food — came in at 2.7%, slightly higher than the 2.6% expected from economists polled by Reuters
Headline inflation came in at 2.9%, higher than the 2.3% seen in October.
Japan’s Nikkei 225 fell 0.29% after the inflation reading and closed at 38,701.9, while the broad-based Topix slipped 0.44% and finished at 2,701.99.
South Korea’s Kospi was down 1.3% to end at 2,404.15, and the small cap Kosdaq lost 2.35% to 668.31, leading Asian losses.
Australia’s S&P/ASX 200 fell 1.24% to close at 8,067, its lowest closing level since September.
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|---|
| .N225 | Nikkei 225 Index | *NIKKEI | 38701.9 | -111.68 | -0.29 |
| .HSI | Hang Seng Index | *HSI | 19751.81 | -0.7 | 0 |
| .AXJO | S&P/ASX 200 | *ASX 200 | 8067 | -101.2 | -1.24 |
| .SSEC | Shanghai | *SHANGHAI | 3368.07 | -1.96 | -0.06 |
| .KS11 | KOSPI Index | *KOSPI | 2404.15 | -31.78 | -1.3 |
| .FTFCNBCA | CNBC 100 ASIA IDX | *CNBC 100 | 9786 | -102.11 | -1.03 |
Overnight in the U.S., the Dow Jones Industrial Average narrowly snapped its longest losing streak since 1974 on Thursday.
The 30-stock Dow added 0.04%, but other major U.S. indexes fell, with the S&P 500 down 0.09% and the Nasdaq Composite falling 0.10%.
The 10-year Treasury yield also rose for a second day, topping 4.5% and pressuring stocks. The benchmark yield surged more than 13 points in the previous session.
— CNBC’s Brian Evans and Pia Singh contributed to this report.
Yen reverses weakness after top Japanese officials reportedly say currency moves are ‘alarming’
The yen reversed losses against the U.S. dollar after top Japanese finance officials reportedly said that recent moves in the Japanese currency were “alarming.”
The currency weakened sharply on Thursday after the U.S. Federal Reserve signaled fewer rate cuts in 2025 and the Bank of Japan held rates at its most recent policy meeting.
Finance Minister Katsunobu Kato told a regular news conference on Friday he has been seeing “one-sided and sharp moves,” adding that he was “alarmed by recent currency market developments.”
Reuters added that Japan’s top currency diplomat Atsushi Mimura also said he had been alarmed by currency moves and flagged a readiness to take appropriate action.
Other notable moves in Asian currencies include the South Korean won, which weakened 0.4% and approached a 15-year low, while the Indian rupee edged up from a record plunge against the greenback.
— Lim Hui Jie
China keeps benchmark lending rates steady as Fed signals fewer cuts ahead
China kept its main benchmark lending rates unchanged on Friday, as Beijing faces the challenge of bolstering economic growth while backstopping a weakening yuan.
The People’s Bank of China said it would keep the one-year loan prime rate at 3.1%, with the five-year LPR holding steady at 3.6%. The 1-year LPR affects corporate and most household loans, while the 5-year LPR serves as a reference for mortgage rates. The move was expected according to a Reuters poll of 27 economists.
The rate decision came on the back of a widely-expected 25-basis-points rate cut by the U.S. Federal Reserve on Wednesday. The Fed also indicated it will only reduce interest rates twice in 2025, fewer than the four cuts in its September meeting’s projection.
Read the full story here.
— Sonia Heng, Anniek Bao
Japan’s core inflation comes in above expectations, “core-core” gauge hits seven-month high
An inflation gauge in Japan that is closely watched by the Bank of Japan (BOJ) came in at a seven-month high in November, which could prompt the central bank to raise rates early next year.
The so-called “core-core” inflation rate, which strips out prices of both fresh food and energy and is tracked by the BOJ, rose to 2.4% from 2.3%, its highest level since April.
The core inflation rate — which strips out prices of fresh food — came in at 2.7%, up from the 2.3% seen in October and beating the 2.6% forecast by economists polled by Reuters.
Headline inflation rose to 2.9% from 2.3%, reaching its highest level since August.
— Lim Hui Jie
South Korea producer prices climb at its fastest rate since August
South Korea’s producer price index climbed 1.4% year-on-year in November, its fastest rise since August.
The November figure was also higher than the revised figure of 1% recorded in October.
On a month-on-month basis, producer prices climbed 0.1%, the first rise since July and a reversal from the 0.1% fall in October.
— Lim Hui Jie
CNBC Pro: Want to buy the dip in energy? Bernstein names a top pick with almost 50% upside
European utilities and clean energy had an underwhelming performance in 2024, but Bernstein sees bright spots within the sector to play in the year ahead.
“We have a bias towards companies loading up on the visible capex [capital expenditure] cycle in electricity networks,” the investment bank’s analysts wrote in a Dec. 9 note.
— Amala Balakrishner
House Republicans say they’ve reached a deal to head off government shutdown
Key House Republicans said on Thursday afternoon that they reached a short-term government funding deal to prevent a government shutdown that would have started on Friday evening.
The accord comes after President-elect Donald Trump indicated he would not support a measure that doesn’t include a debt ceiling increase.
“Our Country is far better off closing up for a period of time than it is agreeing to the things that the Democrats want to force upon us,” Trump wrote on Truth Social.
—Darla Mercado
Wall Street’s fear gauge — the VIX — saw second-biggest spike ever on Wednesday
Wall Street’s fear gauge — the VIX — spiked by the second biggest percentage in its history on Wednesday, after the Federal Reserve jolted the stock market by saying it would dial back its rate-cutting campaign.
The CBOE Volatility Index surged 74% to close at 27.62, up from around 15 earlier in the day. That surge is the second-greatest in history, behind a 115% leap to above the 37 handle back in February 2018 when there was a blow-up in funds tracking the volatility index.
Wednesday’s move comes after the central bank said it will likely lower interest rates just twice next year, down from the four cuts it projected back in September, alarming investors who wanted low rates to keep fueling the bull market. The Dow Jones Industrial Average tumbled by 1,100 points to its 10th straight loss.
— Sarah Min
GDP grew at 3.1% pace in Q3, faster than prior estimate
The U.S. economy grew at a faster pace in the third quarter than previously estimated, according to the third and final estimate Thursday from the Commerce Department.
Gross domestic product accelerated at a 3.1% seasonally adjusted annualized pace during the July-through-September period, 0.3 percentage point better than the previous estimate and above the 2.9% Dow Jones consensus estimate.
Consumer spending, which accounts for about two-thirds of all activity in the $29.4 trillion U.S. economy, rose 3.7% in the quarter, 0.2 percentage point faster than the prior estimate.
— Jeff Cox
Source : cnbc
