A significant decline on Thursday was observed in the Asia-Pacific markets after the U.S. consumer price index reading for October made predictions about a decrease in the rates by the Fed once again in December. CPI met all the expectations by slightly rising to an annual inflation rate of 2.6%. There was an increase in core CPI, which excludes energy prices and volatile food by 3.3% last month, also matching the expectations.
In the final hour of trade, the Hang Seng index of Hongkong led to losses in the region, falling over 2%, extending a multi-day decline as a 4% loss was seen this week as of Wednesday’s close. Since the city changed its rules to allow trading in severe weather, it was the first time that the markets of Hong Kong remained open even after a Typhoon warning issued by the authorities.
Mainland China also experienced a decline and dropped 1.73% to close at 4,039.62. The Japanese yen also faced a loss and went below 156 against the dollar, reaching its lowest point in the last four months. In South Korea, the Kospi index saw a little rise, ending at 2,418.86 while there has been a decline in the Kosdaq index by 1.17% to 681.56.
Australia being the only expectation, finished at 8,224 after a rise of 0.37% following the release of employment data. As economics expected, the unemployment rate in Australia has remained stagnant, whilst the number of people who are employed has increased from the previous month.
Bui, an economist at the investment management firm AMP explained that despite an extended period of high interest rates, the labour market in Australia remained strong. He believes that there will be a rate cut in December by the Reserve Bank of Australia.
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