Asian markets adopt caution before US CPI, China’s SSE Composite losses on lower inflation

• Asian markets show a mixed picture ahead of the release of US CPI data.
• US CPI (YoY) figure is expected to ease to 3.1% from the previous 3.2%.
• Chinese big-shot stocks declined on a fall in China’s inflation for November.
• Major central banks are set to release their policy decisions with expectations to hold rates.

Asian stocks show mixed picture as investors approaches the market cautiously ahead of the US Consumer Price Index (CPI) data. The annual US Consumer Price Index (CPI) figure is expected to ease to 3.1% from the previous 3.2%, with Core CPI to remain steady at 4.0%. These figures provide insights into the inflationary pressures in the United States and are closely monitored by investors.

As of now, China’s SSE Composite Index loses 0.05% at 2,989, and the Shenzhen Component Index declines by 0.23% to 9,610. Japan’s Nikkei 225 rose to 32,814, down by 0.08%. Hong Kong’s Hang Seng is up at 16,335, while the Korean KOSPI has risen to 2,536.

Chinese big-shot shares experienced a decline as investors sought policy support from the Chinese administration following data showing a fall in China’s inflation for November.

Additionally, according to Bloomberg, officials from the Bank of Japan (BoJ) perceive little need to rush out of negative interest rates. The likelihood of adjustments to the ultra-loose monetary policy seems to be fading, as indicated by BoJ officials.

Furthermore, major central banks, including the US Federal Reserve (Fed), Bank of England (BoE), and European Central Bank (ECB), are set to release their interest rate decisions during the week. The Fed is widely expected to hold rates on Wednesday, and similar expectations exist for the BoE and ECB to refrain from making any adjustments to their policy rates. The central bank decisions will be closely watched by market participants for potential impacts on global financial markets.