Asia markets open mostly higher after declines on Wall Street; BOK rate decision in focus

Asia markets open mostly higher after declines on Wall Street; BOK rate decision in focus


Signage for Bank of Korea is displayed atop the central bank’s headquarters building in Seoul, South Korea, on Thursday, Aug. 16, 2018. South Korea’s central bank hiked interest rates for a second consecutive meeting on Thursday to wrestle consumer inflation down from 13-year highs, and further raised its projections for prices to rise to their highest since 2008.

Jean Chung | Bloomberg | Getty Images

SINGAPORE — Asia-Pacific markets opened mostly higher Friday, breaking ranks with Wall Street that saw key benchmarks slide as investors digested a sticky U.S. inflation report.

Investors in Asia are also focused on policy decisions from the Bank of Korea on Friday. South Korea’s central bank is expected to deliver its first rate cut since March 2022, according to a Reuters poll, bringing down its benchmark interest rate by 25 basis points to 3.25%.

China’s Ministry of Finance is scheduled to hold a press conference on Saturday 10 a.m. local time. The highly anticipated briefing session is expected to unveil fresh fiscal stimulus package as Beijing attempts to boost its economy.

Japan’s Nikkei 225 jumped 0.3% on open while the broad-based Topix edged up 0.16%.

South Korea’s blue chip Kospi gained 0.8% and the small cap Kosdaq added 0.4%.

Futures for Hong Kong’s Hang Seng index stood at 21,274, higher than its previous close of 21,251.98.

Australia’s S&P/ASX 200 started the day down 0.19%.

Overnight in the U.S., the S&P 500 lost 0.21% to settle at 5,780.05 while the Dow Jones Industrial Average dropped 0.14% to finish at 42,454.12. The Nasdaq Composite dipped 0.05% to end at 18,282.05.

The U.S. consumer price index rose 0.2% on a monthly basis, bringing the annual inflation growth to 2.4% from the previous year. The inflation figures were higher than forecasts of 0.1% monthly gain and a 2.3% year-over-year rate, according to a Reuters poll.

While the annual inflation rate was the lowest since February 2021, it added to concerns that the Federal Reserve might slow the pace of future rate cuts.

— CNBC’s Samantha Subin and Hakyung Kim contributed to this report.



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