Regional stocks react to inflation and macro data
Asia Pacific equities delivered a mixed session on Friday as U.S. stock futures remained flat during the Thanksgiving holiday. With Wall Street closed, investors in Asia focused on regional macro data and inflation signals, while the Nasdaq Composite stayed on pace to break its seven month winning streak.
Japan was in the spotlight after Tokyo’s consumer price index showed headline inflation easing to 2.7% in October from 2.8% in September. Core inflation, which excludes fresh food but includes energy, came in at 2.8%, slightly above market forecasts and still higher than the Bank of Japan’s 2% target. The reading reinforced expectations that the BOJ could move toward a rate increase in the near term.
Mixed performance across Asian benchmarks
Japan’s Nikkei 225 rose 0.17% to 50,253.91 and the broader Topix climbed 0.29%, marking a third straight day of gains. South Korea’s Kospi index fell 1.51% to 3,926.59, though small cap stocks outperformed with the Kosdaq gaining 3.71% to 912.67.
Shares of battery materials maker Enchem surged more than 16% following reports of an order from Chinese battery producer CATL. In contrast, LG Energy Solution dropped over 6.8% after its parent LG Chem said it would reduce its stake to about 70%.
Australia’s S&P/ASX 200 edged down 0.04% to 8,614.10, while Hong Kong’s Hang Seng index slipped 0.34% to 25,858.89. Mainland China’s CSI 300 added 0.25% to 4,526.67, and property developer China Vanke recovered 1.12% after hitting a record low.
India’s Nifty 50 was nearly unchanged and the BSE Sensex gained 0.1% ahead of GDP data due later in the day.
Rate expectations and U.S. holiday trading
In the U.S., stock futures were little changed with Dow Jones Industrial Average futures up 10 points and the S&P 500 and Nasdaq-100 trading just over the flatline. The major indexes remain on track for a losing month, reflecting pressure on the technology sector as questions persist around the outlook for AI related earnings.
Still, some market participants expect recent declines to offer an entry point for a potential year end rally, arguing that valuations may have overcorrected. U.S. markets were closed on Thursday for Thanksgiving and will reopen with shortened trading hours on Friday.
