Asian Stocks Rise On Thursday As Investors Focus On U.S. Inflation Data
Most Asian stock markets rose on Thursday as investors looked to key U.S. inflation data for more clues on the direction of interest rates.
Most Asian stocks rose on Thursday as investors looked to key U.S. inflation data for more clues on the direction of interest rates. However, Chinese stocks fell despite Beijing's announcement of additional fiscal stimulus measures.
The Dow Jones Industrial Average hit an all-time closing high against the backdrop of a strong performance by U.S. stocks overnight. Minutes from the Fed's September meeting showed that officials supported a 50 basis point rate cut. However, while the minutes showed that the Fed was open to a rate cut, it did not explicitly commit to a specific rate cut, which left U.S. stock index futures flat during the Asian trading session.
Chinese equities continued to be under pressure, with the CSI 300 and Shanghai Composite falling about 0.7% each, extending Wednesday's losses. Market sentiment remained subdued despite the Finance Ministry's announcement that it will hold a conference this Saturday to detail fiscal measures to stimulate gross domestic product (GDP).
This comes after Tuesday's briefing on monetary stimulus measures disappointed investors, causing Chinese stocks to retreat from two-year highs.
Nonetheless, Hong Kong's Hang Seng Index gained 2.5%, reversing losses earlier in the week. Ctrip Group was the top performer, rising more than 5% after Citibank raised its earnings estimates for the company. In addition, Chinese markets were partially supported by a 500 billion yuan ($70.69 billion) liquidity support from the People's Bank of China.
In Japan, the Nikkei 225 was up 0.3% and the TSE (TOPIX) was up 0.2%. However, Japan's Producer Price Index (PPI) rose more than expected in September, suggesting the country may be facing greater inflationary pressures, limiting market gains.
Australian stocks rose 0.6% on the ASX 200, driven by optimism about trade between the U.S. and China. South Korea's KOSPI returned to trading after a holiday, up 0.5 percent.
Futures on India's Nifty 50 index showed the market would open flat, after the index had retreated from record highs the previous week.
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