The Asian equity benchmarks ended mostly in green on Wednesday, while Japanese stocks fell the most in three weeks as investors looking for safe-haven assets drove the yen higher for a third day. China’s factory-gate deflation deepened and consumer prices climbed at the slowest pace since 2009, signaling room for further monetary easing. Chinese CPI fell to an annual rate of 1.4%, from 1.6% in the preceding month while Chinese PPI fell to an annual rate of -2.7%, from -2.2% in the preceding month. Falling oil and metals prices have cut costs for China’s factories, leading to lower export prices and adding to dis-inflation threats across the world. The People’s Bank of China has more room to free up the world’s biggest central-bank balance sheet now that it’s scaling back purchases of foreign exchange. To prevent the extra yuan from fueling inflation, the PBOC requires banks to set aside 20% of deposits as reserves.
Japanese Household Confidence rose to a seasonally adjusted annual rate of 37.7, from 38.9 in the preceding month while Japan’s Corporate Goods Price Index fell to a seasonally adjusted annual rate of 2.7%, from 2.9% in the preceding month. South Korean Unemployment Rate fell to a seasonally adjusted annual rate of 3.4%, from 3.5% in the preceding month.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2,940.01 | 83.74 | 2.93 |
Hang Seng | 23,524.52 | 38.69 | 0.16 |
Jakarta Composite | 5,165.41 | 43.09 | 0.84 |
KLSE Composite | 1,765.52 | 27.42 | 1.58 |
Nikkei 225 | 17,412.58 | -400.80 | -2.25 |
Straits Times | 3,325.81 | 5.97 | 0.18 |
KOSPI Composite | 1,945.56 | -25.39 | -1.29 |
Taiwan Weighted | 9,032.16 | -96.74 | -1.06 |
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