On Friday morning (11 October, 9:27 AM, GMT+7, Bangkok time), indices in Asia Pacific traded mixed after Wall Street exhibited a negative trend last night, where major indices dropped as investors analyzed a concerning U.S. inflation update. Investors also digested interest rate decisions from the Bank of Korea.
The central bank of South Korea has reduced its benchmark interest rate by 25 basis points to 3.25%, marking its first rate cut since the year 2020. This decision signals the conclusion of a prolonged period of tightening measures that had pushed rates to a 15-year peak in 2023. The decision comes amid a backdrop of declining inflation, with rates easing to 1.6% in September, representing the lowest rate recorded since early 2021 and falling below the central bank’s targeted rate of 2%.
The U.S. consumer price index experienced a modest 0.2% uptick on a monthly basis, resulting in an annual inflation growth rate of 2.4% compared to the previous year. These inflation numbers exceeded expectations, surpassing forecasts of a 0.1% monthly increase and a 2.3% year-over-year rate as indicated by a Reuters survey.
Though the rate is the lowest recorded since February 2021, it has stirred concerns that the US Federal Reserve might taper the pace of forthcoming rate reductions.
Meanwhile, Hong Kong markets were closed on Friday for a public holiday.
Japan’s NIKKEI rose by 0.66% to 39,639.21. South Korea’s KOSPI climbed by 0.36% to 2,608.43, while Australia’s ASX 200 slid by 0.08% to 8,216.8.
As for stocks in China, Shanghai’s SSEC dropped by 1.74% to 3,244.6. and Shenzhen’s SZI slumped by 3.85% to 10,068.
Meanwhile, the US stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) contracted by 0.14% to 42,454.12. NASDAQ dipped by 0.05% to 18,282.05, and S&P 500 fell by 0.21% to 5,780.05. VIX grew by 0.34% to 20.93.
As for commodities, oil prices settled higher on Thursday, fueled by a surge in U.S. fuel consumption ahead of Hurricane Milton hitting Florida, concerns over supply risks in the Middle East, and indications of potential energy demand growth in both the U.S. and China. Brent futures increased $2.82 or 3.68% to $79.40 a barrel, and the West Texas Intermediate (WTI) gained $2.61 or 3.56% to $75.85 per barrel.
This morning, Brent futures decreased 41 cents or 0.52% to $78.99 a barrel, and the WTI declined 34 cents or 0.45% to $75.51 per barrel.
Meanwhile, gold futures gained 0.52% to $2,652.9 per Troy ounce.
