Nikkei, Topix and Co. Asian markets nervous ahead of US inflation data

Nikkei, Topix and Co. Asian markets nervous ahead of US inflation data

Nikkei, Topix and Co. Asian markets nervous ahead of US inflation data
The Asian stock exchanges will not find a common direction on Thursday.  Source: Reuters

The Asian stock exchanges cannot agree on a common direction on Thursday. Although concerns about the economic effects of the Omikron variant subsided, the upcoming US inflation data unsettled investors. “The volatility remains increased because the news around Omikron is still a long time coming,” said the analysts at ANZ Bank. And an acceleration of the tapering by the US Federal Reserve is almost treated as a “foregone conclusion”. “However, a high consumer price index could raise hopes for an interest rate hike in the second quarter of next year.

The Nikkei index, which comprises 225 values, remained virtually unchanged over the course of the year at 28,848 points. The broader Topix index fell 0.3 percent and stood at 1996 points.

The Shanghai stock exchange was one percent up. The index of the most important companies in Shanghai and Shenzen gained 1.8 percent.

In Asian foreign exchange trading, the dollar was almost unchanged at 113.67 yen and stagnated at 6.3440 yuan. In relation to the Swiss currency, it was quoted hardly changed at 0.9205 francs. At the same time, the euro fell 0.1 percent to 1.1333 dollars and fell 0.1 percent to 1.0434 francs. The pound sterling stagnated at $ 1.3205.

China’s producer prices are slowing down slightly

The rise in prices in Chinese industrial companies in recent months has slowed due to government crackdown on excessive raw material prices and a waning energy shortage in November. The producer prices rose by 12.9 percent compared to the same month last year, as the statistics office announced in Beijing on Thursday. Economists had expected an inflation rate of 12.4 percent after it had been 13.5 percent in October. Factory prices had accelerated since May this year due to rising raw material costs, putting pressure on downstream businesses to pass their spending on to consumers. The Beijing government has therefore taken a number of measures in recent months to contain inflation.

In the People’s Republic, inflation for consumers has so far been comparatively low. The consumer price index (CPI) rose by 2.3 percent year-on-year, as the National Statistics Office published in a separate statement. The increase fell short of expectations of 2.5 percent, but was above the 1.5 percent in October. Strict corona restrictions are stifling consumption and straining demand, suggesting that high factory prices are only being passed on to a limited extent.

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