Investing.com– Most Asian stocks fell on Thursday on growing confidence that U.S. interest rates will fall at a slower pace this year, while weak inflation data from China also added to concerns about slowing growth.
Regional markets received tepid signs after an overnight close on Wall Street unchanged, as minutes from the Federal Reserve’s December meeting reiterated the central bank’s hawkish outlook on rates this year.
Policymakers have also expressed concern that expansionary and protectionist policies under President-elect Donald Trump could support inflation.
US stock index futures fell in Asian trade.
Chinese stocks fell as inflation data fell in December
China’s and indexes each fell by about 0.3%, while Hong Kong’s index rose slightly.
inflation remained largely unchanged in December, data showed on Thursday, while inflation decreased for the 27th month in a row.
The data showed a slight improvement in China’s disinflation, although Beijing scaled back its most aggressive round of stimulus measures yet since late September.
Weak consumer sentiment has been a key pressure point on China’s economy, as worries about slowing growth and a prolonged slump in the housing market have largely deterred spending over the past two years.
China’s economy also faces increased headwinds from trade tariffs under Trump, although Beijing is expected to issue even more stimulus measures to offset that.
Investors are waiting for any fiscal measures aimed at increasing consumer spending.
Japanese stocks fall as strong wages data fuel BOJ jitters
Japan fell 0.8% on Thursday, as did the broader index.
Local markets were spooked by data that showed they rose in November, while also growing more than expected.
The strong wages data weighed on fears that strong personal spending will fuel inflation in the coming months, giving the Bank of Japan additional incentive to raise interest rates further.
They rallied after the wages data, weighing on Japanese export stocks.
However, the BOJ has given scant indication of when it will raise interest rates further. The central bank last signaled that it may wait for wage negotiations in March before making a decision.
Broader Asian shares fell sharply on Thursday amid growing concerns about longer-term higher US interest rates.
The Australian index fell 0.4 percent. data from the country appeared weaker than expected for November, while separate data showed a larger-than-expected increase in , due to the recovery of goods exports.
Singapore’s fell 0.4%, while South Korea’s was the only gainer among rivals, rising 0.4% in an extended recovery from December’s slide. But political uncertainty remains high in the country, amid ongoing efforts to arrest President Yoon Suk Yeol over his failed attempt to impose martial law.
for the Indian index pointed to a soft opening, after some weak earnings from the country this week. Indian earnings will see a serious boost next week.
