On Friday morning (20 December, 9:34 AM, GMT+7, Bangkok time), most major indices in Asia Pacific decreased as investors analyzed inflation figures from Japan and a monetary policy decision from China.
The People’s Bank of China (PBOC) maintained its loan prime rates unchanged, keeping the one-year rate at 3.1% and the five-year rate at 3.6%. The one-year LPR impacts corporate loans and the majority of household loans in China, while the five-year LPR acts as a standard for mortgage rates.
On the other hand, Japan unveiled its inflation data for November, a day after the Bank of Japan (BOJ) retained its benchmark rates at 0.25%. The core inflation rate in the country, which excludes fresh food prices, surpassed expectations at 2.7% compared to the 2.6% projected by economists surveyed by Reuters. Meanwhile, headline inflation registered at 2.9%, up from October’s 2.3%.
South Korea’s KOSPI dropped by 1.14% to 2,408.12. Australia’s ASX 200 fell by 1.32% to 8,060.2, while Japan’s NIKKEI rose by 0.2% to 38,890.53.
As for stocks in China, Hong Kong’s HSI slid by 0.18% to 19,716.75. Shenzhen’s SZI dipped by 0.11% to 10,636.94, while Shanghai’s SSEC climbed by 0.08% to 3,372.62.
Meanwhile, the US stock markets were mixed on Thursday as NASDAQ declined by 0.1% to 19,372.77. S&P 500 contracted by 0.09% to 5,867.08, while the Dow Jones Industrial Average (DJIA) grew by 0.04% to 42,342.24. VIX slumped by 12.78% to 24.09.
As for commodities, oil prices settled lower on Thursday amid apprehensions that the tepid economic growth could potentially hamper oil demand in the forthcoming year, prompted by central bankers in the U.S., Europe, and Asia adopting a cautious stance towards monetary policy adjustments. Brent futures shrank 51 cents or 0.69% to $72.88 a barrel, and the West Texas Intermediate (WTI) decreased 67 cents or 0.95% to $69.91 per barrel.
This morning, Brent futures edged down 41 cents or 0.56% to $72.47 a barrel, while the WTI remained unchanged at $69.91 per barrel.
Meanwhile, gold futures gained 0.15% to $2,612 per Troy ounce.
