Japan sees core inflation at highest in 40 years as Asia-Pacific stocks rise

Soegeefx AppsAsia MarketJapan sees core inflation at highest in 40 years as Asia-Pacific stocks rise

Jihye Lee

Shares in the Asia-Pacific inched higher as Japan’s core consumer price index for October rose 3.6% compared to a year ago, higher than expected and at the fastest pace in 40 years. The nation last saw the same level in February 1982, Refinitiv data showed.

The Nikkei 225 was fractionally higher and the Topix inched up 0.22%. South Korea’s Kospi was up 0.75%. The S&P/ASX 200 in Australia gained 0.32%.

The Hang Seng Index rose 1%, with the Hang Seng Tech index up 2.72% as China issued a number of gaming licenses. In mainland China, the Shanghai Composite and the Shenzhen Component was about flat.

.N225 Nikkei 225 Index *NIKKEI 27971.96 41.39 0.15
.HSI Hang Seng Index *HSI 18231.36 185.7 1.03
.AXJO S&P/ASX 200 *ASX 200 7154.9 19.2 0.27
.SSEC Shanghai *SHANGHAI 3117.51 2.08 0.07
.KS11 KOSPI Index *KOSPI 2460.44 17.54 0.72
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 7762.26 68.07 0.88

Economic leaders of the region will gather in Thailand as the Asia Pacific Economic Cooperation summit continues.

Overnight on Wall Street, stocks fell and yields jumped with a number of speakers from the Federal Reserve signaling more interest rates hikes ahead. St. Louis Federal Reserve President James Bullard suggested the appropriate federal funds rate zone to be between 5% and 7%, higher than what markets are pricing in.

Tencent, NetEase stocks rise after China approves game titles

Shares of Chinese tech companies Tencent and NetEase listed in Hong Kong rose after the companies were granted gaming licenses by China’s National Press and Publication Administration.

Tencent shares rose 3% at open, and NetEase rose more than 5%.

The regulator issued licenses for some 70 games for November, including Tencent’s Metal Slug: Awakening and NetEase’s A Chinese Odyssey: Homecoming.

On Thursday, NetEase shares plunged more than 11% after the company announced its license with Activision Blizzard will be ending in January 2023.

— Jihye Lee

Japan’s core inflation index rises 3.6%, higher than expected

The core consumer price index for Japan rose 3.6% in October on an annualized basis, beating expectations for a rise of 3.5% and the quickest pace since February 1982.

The index, which excludes fresh food but includes fuel costs, rose 3.0% in September compared with the same period a year ago.

The latest data marks the seventh consecutive month that the nation has seen inflation levels above the Bank of Japan’s target of 2%.

— Jihye Lee

CNBC Pro: JPMorgan says these Asian travel stocks are poised to pop

As travel in Asia resumes and continues to gain momentum, especially after China’s recent announcement to reduce quarantine time for international travelers, JPMorgan says it remains bullish on the region’s travel industry.

“Considering the high forward booking visibility and further upside arising from the final leg of re-opening in parts of the region, we stay positive on the Asia airlines & airports sectors,” it said in a Nov. 11 note.

— Charmaine Jacob

The S&P 500, Nasdaq Composite close lower Thursday

The Dow Jones Industrial Average closed near the flat line on Thursday despite falling as much as 314 points in the session. The S&P 500 fell 0.31%. The Nasdaq Composite declined 0.35%.

— Sarah Min

CNBC Pro: ‘Bull case for semis is compelling’: BofA picks top chip stocks to buy

Chip stocks, once a hot favorite among investors, are doing poorly this year. But BofA says that despite consumer demand remaining under pressure, the “bull case for semis is also compelling.”

Semiconductor sales could rebound in the second half of 2023, BofA predicted.

Here are some themes that chip stocks could ride on, says the bank, which also picks names to buy.

— Weizhen Tan

Fed’s Jefferson said low inflation is the best way to achieve prosperity

Keeping inflation under control is the best way to ensure a strong economy for everyone, Federal Reserve Governor Philip Jefferson said Thursday.

“Low inflation is key to achieving a long and sustained expansion — an economy that works for all,” the central bank official said during an event in Minneapolis. “Pursuing our dual mandate is the best way for the Federal Reserve to promote widely shared prosperity.”

Jefferson did not provide any direct comments on where he sees policy heading as the Fed looks to achieve both full employment and stable prices.

His comments from following a flurry of speeches from his colleagues, who universally say the Fed will need to raise interest rates more to bring down inflation still running around its highest levels since the early 1980s.

—Jeff Cox

Fed’s Bullard says monetary policy not yet ‘sufficiently restrictive’

St. Louis Federal Reserve President James Bullard said more tightening may be needed for the central bank to tame inflation.

He said Thursday that inflation remains unacceptably high, noting that policy isn’t “sufficiently restrictive” at current levels. The Fed has raised rates from zero to a range of 4%-4.25% this year, as U.S. inflation soars to levels not seen in decades.

“Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023,” Bullard said.

— Fred Imbert

Source : CNBC

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