Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Asian stocks rebound ahead of U.S. PPI, Hong Kong outperforms

Stock Markets Dec 09, 2022 13:54
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
JP225
+0.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HK50
+0.54%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NSEI
-1.61%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
KS11
+0.62%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TWII
+0.04%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BSESN
-1.45%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick

Investing.com-- Most Asian stock markets rebounded from recent losses on Friday ahead of key U.S. inflation data, although fears of a global recession and rising interest rates put most regional bourses on course for weekly losses.

Hong Kong’s Hang Seng index was the best performer for the day, rising 1.7% amid growing bets that the city’s government will follow Beijing in scaling back anti-COVID measures.

The Hang Seng also vastly outperformed its Asian peers for a second consecutive week, rallying nearly 6%.

China’s blue-chip Shanghai Shenzhen CSI 300 index rose 0.2%, and was also set to end the week 2.6% higher, while the Shanghai Composite added 1.4% this week as China scaled back several COVID-related movement curbs and testing mandates.

The move ramped up hopes over a broader reopening in the world’s second-largest economy, as it faces increasing public unrest and worsening economic conditions.

But recent economic readings show that the country has a long road to recovery. Chinese inflation shrank further in November, as overall business activity contracted.

Other Asian bourses rose. Japan’s Nikkei 225 index added 1.2%, while the Taiwan Weighted index and South Korea’s KOSPI rose 1% and 0.5%, respectively.

Focus now turns to upcoming U.S. inflation data, which is expected to shed more light on the potential path of monetary policy.

The U.S. producer price index due later on Friday is expected to show that manufacturing inflation eased further in November. The reading is also likely to herald a similar trend in the consumer price index, which is due next week.

But markets are wary of any signs of inflation remaining sticky, which could invite more hawkish moves by the Federal Reserve. While the central bank is expected to hike rates by a relatively smaller 50 basis points next week, it has warned that rate hikes could continue for longer than expected in the face of stubborn inflation.

Such a scenario is negative for Asian stocks, which were battered by rising interest rates this year.

Technology-heavy bourses in Asia were the worst performers this week, as the sector was battered by warnings of a potential U.S. recession in 2023. The KOSPI and Taiwan Weighted indexes shed nearly 2% each this week.

Indian stocks were flat on Friday, with the Nifty 50 and BSE Sensex 30 indexes set for muted weekly performances as the Reserve Bank hiked interest rates and flagged more measures to combat high inflation.

Asian stocks rebound ahead of U.S. PPI, Hong Kong outperforms
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email