Asian stocks recede as China’s inflation rate rises

Chinese benchmarks led the decline after the government reported a surge in inflation in October, while Asian stocks fell on Wednesday, tracking Wall Street’s retreat.

China’s consumer price index, a key indicator of inflation, rose 1.5% from 0.7% last month, according to the National Bureau of Statistics. He said the surge to highs for the first time in 13 months was mainly due to soaring food and fuel prices.

Producer prices, or wholesale prices, rose 13.5%, adding concern that price pressures may limit the ability of central banks to adjust policies to boost growth. Hong Kong’s Hang Seng Index fell 1% to 24,575.71 and the Shanghai Composite Index fell 0.8% to 3,479.31.

But the latest figures have been exaggerated by last year’s low comparative data, and the underlying price pressures remain low, Capital Economics Julian Evans-Pritchard said in a report.

“We believe consumer price inflation will remain below 2% in the coming quarters, and we believe inflation is unlikely to significantly constrain the People’s Bank of China’s ability to ease monetary policy,” he said. rice field.

In other parts of Asia, Tokyo’s Nikkei 225 fell 0.6% to 29,106.78 and South Korea’s Kospi fell 1.1% to 2,929.81. Australia’s S & P / ASX 200 fell 0.1% to 7,423.90.

On Wall Street on Tuesday, stocks fell slightly, beating eight consecutive days of winning streak, backed by strong corporate earnings and economic data.

The S & P 500 Index fell 0.4% to 4,685.25. The last eight consecutive days of S & P 500 gains were in April 2019. The Dow Jones Industrial Average fell 0.3% to 36,319.98, while the Nasdaq fell 0.6% to 15,886.54.

Tesla lost 12% after founder Elon Musk announced that he would sell 10% of the electric car maker’s holdings, based on the results of a poll conducted on Twitter. The company’s share price has fallen by more than 16% so far this week, but has risen by 45% so far this year.

Meanwhile, PayPal, a company co-founded by Musk over 20 years ago, has lowered its full-year outlook and earnings forecast as competition intensifies with Square, Affirm and other financial tech companies such as traditional banks. After that, it fell by 11%.

Robin Hood fell 3.4% after a popular trading app reported a data breach the day before.

Lower bond yields have lowered bank stock prices. Lenders rely on higher yields to claim more favorable interest. Yields on 10-year Treasuries fell from 1.49% late Monday to 1.44%.

Inflation is also affecting the US market. The Ministry of Labor reported on Tuesday that wholesale-level inflation rose 8.6% year-on-year, in line with September’s record annual profits.

Many industries are facing high supply chain issues while increasing raw material and energy costs. It cuts down on their operations and encourages them to raise the price of finished products, which in turn makes products and services more expensive for consumers.

The Ministry of Labor will release the October Consumer Price Index on Wednesday to explain in more detail how inflation is affecting consumers.

The latest earnings round is nearing its end, but investors still have some big corporate report cards to review. Walt Disney will report the results on Wednesday. Tapestries, owners of coaches and other luxury brands, will report the results on Thursday.

Benchmark US crude rose 23 cents to $ 84.38 a barrel in electronic trading on the New York Mercantile Exchange. It surged $ 2.22 on Tuesday. Brent crude, the basis of international prices, added 47 cents to $ 85.25 per barrel.

The US dollar rose from 112.86 yen to 112.90 yen. The euro fell from $ 1.1595 to $ 1.1579.

Asian stocks recede as China’s inflation rate rises

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