Asian markets rise as inflation data fuels policy uncertainty
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Asian equity markets were mostly higher on Thursday as investors digested new regional inflation data and its potential impact on monetary policy.
In Japan, core consumer prices rose 3.5% year-on-year in April, driven partly by rising rice costs. This has led the Bank of Japan to consider pausing further interest rate hikes while assessing the implications of recent U.S. tariffs.Singapore’s core inflation also exceeded forecasts, increasing 0.7% year-on-year, according to official data from the Monetary Authority of Singapore.
The Nikkei 225 in Tokyo gained 0.49%, while China’s Shanghai Composite slipped 0.65%. Shenzhen edged up 0.12%. Gains were modest in Hong Kong (+0.45%) and Seoul (+0.01%). Mumbai advanced 1%, and Sydney rose 0.26%. On currency markets, the euro remained largely flat against the Japanese yen (-0.04%), the Chinese yuan (+0.01%), and the Hong Kong dollar (+0.01%).
Bond yields held steady: Japan’s 10-year government bond yielded 1.56%, while China’s equivalent stood at 1.7%. Analysts note that persistent inflation and diverging central bank strategies could increase volatility in both equity and fixed income markets in the region.
In Japan, core consumer prices rose 3.5% year-on-year in April, driven partly by rising rice costs. This has led the Bank of Japan to consider pausing further interest rate hikes while assessing the implications of recent U.S. tariffs.Singapore’s core inflation also exceeded forecasts, increasing 0.7% year-on-year, according to official data from the Monetary Authority of Singapore.
The Nikkei 225 in Tokyo gained 0.49%, while China’s Shanghai Composite slipped 0.65%. Shenzhen edged up 0.12%. Gains were modest in Hong Kong (+0.45%) and Seoul (+0.01%). Mumbai advanced 1%, and Sydney rose 0.26%. On currency markets, the euro remained largely flat against the Japanese yen (-0.04%), the Chinese yuan (+0.01%), and the Hong Kong dollar (+0.01%).
Bond yields held steady: Japan’s 10-year government bond yielded 1.56%, while China’s equivalent stood at 1.7%. Analysts note that persistent inflation and diverging central bank strategies could increase volatility in both equity and fixed income markets in the region.