Blog

Solid Gold Berjangka | Asia markets mixed as threat of China deflation grows

Asia-Pacific markets were mixed as investors look to China’s inflation figures for July, with the consumer price index predicted to enter deflationary territory for the first time since February 2021.

Economists polled by Reuters expect China’s inflation rate to fall 0.4% year-on-year. The country’s producer price index — which measures the change in selling prices received by domestic producers for their output — is also expected to fall 4.1%.

Futures for Hong Kong’s Hang Seng index stood at 19,084, pointing to a stronger open compared to compared to the HSI’s close of 19,184.17.

Japan’s Nikkei 225 slid 0.24% in early morning trade, while the Topix fell 0.3%. In contrast, South Korea’s Kospi climbed 0.88%, while the Kosdaq was up 1%. Australia’s S&P/ASX 200 was trading close to the flatline.

Overnight in the U.S., all three major indexes saw a selloff after Moody’s downgraded the credit rating on several regional banks, citing deposit risk, a potential recession and struggling commercial real estate portfolios.

The Dow Jones Industrial Average was down 0.45%, while the S&P 500 dipped 0.42% and the Nasdaq Composite pulled back by 0.79%.

Source: CNBC