Asian shares mixed as investors eye Tokyo inflation data | The Financial Express

Asian shares mixed as investors eye Tokyo inflation data

The Federal Reserve and the world’s other central banks have been raising interest rates to try to rein in decades-high inflation.

Asian shares mixed as investors eye Tokyo inflation data
Investors have their eyes on China's lockdowns and restrictions to curb the spread of coronavirus infections, as the direction China takes will have great impact on the rest of Asia. (Bloomberg)

Asian shares were mixed on Friday as worries deepened about the regional economy and Japan reported higher-than-expected inflation.

Benchmarks fell in Tokyo, Seoul and Hong Kong, but rose in Sydney and Shanghai. Oil prices advanced.

Investors have their eyes on China’s lockdowns and restrictions to curb the spread of coronavirus infections, as the direction China takes will have great impact on the rest of Asia.

“Reopening policies have pivoted in China, which will be a gradual process. COVID control measures will vary across cities, but positive top-down approaches will be ongoing,” said Stephen Innes, Stephen Innes, managing partner at SPI Asset Management.

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Japan’s benchmark Nikkei 225 lost 0.3 per cent in morning trading to 28,286.40. Australia’s S and P/ASX 200 rose 0.3 per cent to 7,262.40.

South Korea’s Kospi edged down 0.1per cent to 2,438.19. Hong Kong’s Hang Seng slipped 0.8 per cent to 17,521.11. The Shanghai Composite gained 0.5 per cent to 3,105.36.

Data on inflation in Tokyo for November beat analysts’ expectations, with the core consumer price index showing a 3.6 per cent rise, the highest in more than four decades.

The Federal Reserve and the world’s other central banks have been raising interest rates to try to rein in decades-high inflation.

But the Bank of Japan has resisted tightening monetary policy, a move that would counter inflationary pressures by discouraging borrowing by businesses and consumers.

“With the Bank of Japan being one of the few outliers which has not embarked on a rate-hiking process, the point of pivot will be a key question into next year,” Jun Rong Yeap of IG said in a commentary.

Shares finished higher Thursday in France, Germany and Britain. US markets were closed for Thanksgiving. Wall Street will have a shortened session on Friday.

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In energy trading, benchmark US crude rose 46 cents to USD 78.40 a barrel in electronic trading on the New York Mercantile Exchange. It gave up USD 3.01 to USD 77.94 per barrel on Thursday.

Brent crude, the international standard, added 29 cents to USD85.55 a barrel in London.

In currency trading, the US dollar rose to 138.64 Japanese yen from 138.58 yen. The euro cost USD1.0410, inching down from USD1.0411.

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First published on: 25-11-2022 at 11:30 IST