Asia-Pacific Stocks Mixed as Tokyo Inflation Surprises, Fueling Rate-Hike Expectations
Asia-Pacific markets delivered a mixed performance on Friday as investors navigated fresh signals from Japan’s capital city and awaited India’s latest economic results. With U.S. markets pausing for Thanksgiving and stock futures flat, trading sentiment across the region remained cautious, especially as the Nasdaq Composite appeared likely to break its seven-month winning streak.
A key driver of the day’s market action was Tokyo’s latest inflation report—closely watched because it often forecasts nationwide trends. October’s headline inflation eased slightly to 2.7% from 2.8%, but the core reading—excluding fresh food but including energy—ticked up to 2.8%, beating economists’ expectations. With inflation still above the Bank of Japan’s 2% target, the data strengthened speculation that a long-awaited rate hike could be approaching.
Japan’s markets reacted modestly. The Nikkei 225 rose 0.17% to 50,253.91, marking its third straight day of gains, while the broader Topix added 0.29%. Elsewhere, South Korea’s Kospi dropped sharply by 1.51%, weighed down by a 6.8% fall in LG Energy Solution after its parent company LG Chem said it would trim its stake to boost shareholder returns. In contrast, battery materials maker Enchem surged more than 16% after reports of a major new order from China’s CATL.
Across the region, Australia’s S&P/ASX 200 dipped slightly, while Hong Kong’s Hang Seng index slipped 0.34%. Mainland China’s markets showed resilience, with the CSI 300 rising 0.25%, and shares of property developer China Vanke rebounding 1.12% from record lows. In India, the Nifty 50 held steady as investors waited for fiscal second-quarter GDP figures expected later in the day.
In the U.S., the three major indexes posted minimal movement ahead of the holiday. Tech stocks remained under pressure in November, raising concerns about the sector’s future profitability amid an AI-driven spending glut. Still, some investors remain optimistic that the recent dip could set the stage for a late-year rally as valuations become more attractive. U.S. markets will reopen on Friday for a shortened trading session ending at 1 p.m. ET.
source: cnbc