Asia-Pacific markets mixed after U.S. inflation report fuels Fed rate cut expectations

Asia-Pacific markets mixed after U.S. inflation report fuels Fed rate cut expectations


A Sydney ferry passes the Opera House and skyline of the central business district area on May 12, 2020 in Sydney, Australia.

James D. Morgan | Getty Images

Asia-Pacific markets traded mixed on Thursday after the U.S. October consumer price index reading fueled expectations for the Fed to cuts rates again in December.

The CPI came in line with expectations, accelerating slightly to an annual inflation rate of 2.6%. Core CPI, which straps out volatile food and energy prices, gained 3.3% last month, also matching expectations.

Australia’s unemployment rate remained steady in October at 4.1%, as economists had expected, while the number of employed people increased 15,900 from a month ago, falling short of the expected 25,000.

The participation rate, which measures the share of working-age people currently employed or seeking a job, stood at 67.1%, slightly below an estimated 67.2%.

“It is clear that the labour market in Australia is still very resilient, despite an extended period of restrictive rates,” said My Bui, economist at investment management firm AMP.

Bui believes the Reserve Bank of Australia is unlikely to deliver a cut in December, but sees room for easing in the first half of 2025.

Australia’s S&P/ASX 200 was up 0.43%.

Japan’s Nikkei 225 gained 0.82% while the Topix added 0.92%.

Japanese yen appreciated slightly against the U.S. dollar to 155.36 on Thursday, after falling below the 155 benchmark overnight, hovering near the lowest level in over four months.

South Korea’s Kospi advanced 0.82%, while the Kosdaq Index was up 1.73%. The country’s markets opened an hour later than usual on Thursday because of national college entrance exams.

Hong Kong’s Hang Seng index was down 0.82% in a choppy trading morning, following a multi-day losing streak that saw the index shed 4% this week as of Wednesday’s close.

Mainland China’s CSI 300 was trading near the flatline.

Overnight in the U.S., the S&P 500 and Dow Jones Industrial Average closed near the flatline following the release of the inflation report.

The S&P 500 inched higher by 0.02% to close at 5,985.38, while the 30-stock Dow ticked up 47.21 points, or 0.11%, to 43,958.19. The Nasdaq Composite ended the day with a 0.26% decline and closed at 19,230.74.

The inflation data puts the Federal Reserve on course to lower interest rates next month, with markets pricing in a 80.8% likelihood of a quarter-percentage-point cut, according to the CME FedWatch Tool.

— CNBC’s Brian Evans and Hakyung Kim contributed to this report.



Source

The Onion wins Alex Jones’ Infowars in bankruptcy auction
World

The Onion wins Alex Jones’ Infowars in bankruptcy auction

The Onion, the satirical news company that repeatedly spoofed conspiracy theorist Alex Jones, has won the bankruptcy auction for control over his media empire — most notably InfoWars, the far-right, conspiracy-minded website that served as Jones’ primary online platform. Jones announced the sale on X Thursday morning. “I just got word 15 minutes ago that my lawyers and folks […]

Read More
Wholesale prices rose 0.2% in October, in line with expectations
World

Wholesale prices rose 0.2% in October, in line with expectations

Customers shop at a Costco Wholesale store in Miami on Dec. 15, 2023. Joe Raedle | Getty Images News | Getty Images Wholesale prices nudged higher in October, though largely in line with expectations and mostly consistent with the Federal Reserve cutting interest rates again in December, the Bureau of Labor Statistics reported Thursday. The […]

Read More
WikiLeaks whistleblower Chelsea Manning says censorship is still ‘a dominant threat’
World

WikiLeaks whistleblower Chelsea Manning says censorship is still ‘a dominant threat’

Former U.S. Army intelligence analyst Chelsea Manning says censorship is still “a dominant threat,” advocating for a more decentralized internet to help better protect individuals online. Her comments come amid ongoing tension linked to online safety rules, with some tech executives recently seeking to push back over content moderation concerns. Speaking to CNBC’s Karen Tso […]

Read More