Asian markets on Friday mostly rose again after data showing another slowdown in US inflation fueled bets the US Federal Reserve would take a softer approach to its monetary tightening campaign.
The inflation reading added to the positive energy flowing through trading floors at the start of the year as investors put a painful 2022 behind them and focus on a recovery in the global economy, helped greatly by China’s reopening.
All three main indices on Wall Street on Thursday extended gains after the much-anticipated consumer price index came in at its lowest level since October 2021 as months of Fed interest rate hikes began to kick in.
Photo: Sam Yeh, AFP
Most Asian markets tracked the New York rally, with Taipei, Jakarta, Manila, Mumbai, Seoul, Singapore, Shanghai, Sydney and Wellington all in the green.
However, Tokyo’s Nikkei 225 index fell 1.25 percent to 26,119.52 on speculation that the Bank of Japan might relent and tighten its ultra-loose monetary policy as the yield on 10-year Japanese government bonds was pushed beyond the central bank’s cap of 0.5 percent on heavy selling ahead of next week’s policy setting meeting.
The index was up 0.56 percent for the week. The broader TOPIX fell 0.27 percent to 1,903.08, but gained 1.46 percent weekly.
The central bank has kept its key interest rate at minus-0.1 percent, maintaining that downward pressure from a likely recession is a bigger risk than inflation, which has remained at relatively moderate levels in Japan.
Shares in Fast Retailing Co, which shot up earlier in the week on news it would hike wages by as much as 40 percent, dropped 6.4 percent after the company reported weaker than expected profit in the previous quarter.
China reported its trade surplus ballooned to a record US$877.6 billion last year as exports rose 7 percent despite weakening US and European demand, as well as anti-virus controls that temporarily shut down Shanghai and other industrial centers. The country’s politically sensitive trade surplus expanded by 29.7 percent from 2021’s record, already the highest ever for any economy.
Hong Kong extended its winning streak despite a report saying the Chinese government was considering taking “golden shares” in giants Alibaba Group Holding Ltd (阿里巴巴) and Tencent Holdings Ltd (騰訊), giving it a tighter grip on the tech sector.
Hong Kong’s Hang Seng Index rose 1.4 percent to 21,738.66, gaining 3.56 percent for the week, while the Shanghai Composite Index climbed 1.01 percent to 3,195.31, up 1.19 percent weekly. The KOSPI Composite Index in Seoul added 0.89 percent to 2,386.09, for a 4.2 percent weekly increase, while Australia’s S&P/ASX 200 rose 0.66 percent to 7,328.1, gaining 3.07 for the week.
In Taipei, the TAIEX rose 0.63 percent to close at 14,824.13, increasing 3.14 percent for the week, while Bangkok’s SET Index fell 0.34 percent to 1,681.73, but rose 0.47 percent from last week.
India’s SANSEX increased 0.51 percent to 60,261.18, rising 0.6 percent weekly.
Additional reporting by staff writer
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