Asia-Pacific markets fell in a choppy session on Thursday as investors worried the Federal Reserve could delay easing policy amid inflation concerns, while entrenched consumer disinflation in China further dented sentiment.
China’s December inflation data released on Thursday showed the consumer price index rose 0.1% last month from a year earlier, while the producer price index fell 2.3% year-on-year, sliding for the 27th straight month. .
Hong Kong’s Hang Seng index gave up modest gains earlier, trading marginally lower, while mainland China’s CSI 300 fell 0.05%.
Economists at Barclays expect CPI to remain low for longer and PPI to remain deflationary through 2025, they said in a note after the data release, while they cut their full-year inflation forecast to 0.4% due to a lack of demand-side stimulus, the upcoming increase in tariffs and structural barriers, reports SEEbiz.
Japan’s benchmark Nikkei 225 index fell 1.27%, and the Topix fell 1.30%. The Japanese yen rose slightly to 158.08 against the US dollar, recovering from Wednesday’s five-month low.
Australia’s S&P/ASX 200 lost 0.37% to close at 8,317.80.
South Korea’s Kospi index added 0.1% in a volatile session, and the small-cap Kosdaq fell 0.13%.
