Asia markets mixed as investors assess China rate decision; eyes on PCE inflation data

Asia-Pacific markets trade mostly lower on Friday as investors reacted to the monthly fixing of key lending rates in China, with the PBoC maintaining them at record lows, as expected, after reductions in October and July. Investors also responded to data showing Japan’s headline inflation rate rose to a three-month high of 2.9% in November, up from 2.3% in October. Japan ( NKY:IND ) fell -0.17% to above 38,900, while the Topix Index gained 0.15% to 2,717 on Friday. The Japanese yen strengthened past 157 per dollar on Friday as investors responded to data showing Japan’s headline inflation rate rose to a three-month high of 2.9% in November, up from 2.3% in October . The core inflation rate also increased to 2.7%, surpassing market expectations of 2.6%. China ( SHCOMP ) fell -0.14% to around 3,380 and the Shenzhen Component rising 0.4% to 10,690, and the offshore yuan stabilized at 7.30 per dollar after the People's Bank of China held its key lending rates steady at December's fixing . Hong Kong ( HSI ) rose +0.08% to 19,874 in Friday morning deals, after closing modestly lower in the previous session. India ( SENSEX ) fell -0.22% to 79,090 in morning trade on Thursday, marking its fifth consecutive session of losses, while lingering at its lowest level in three weeks, driven primarily by declines in financial services, banking sectors, and realty stocks. Australia ( AS51 ) fell -1.24% to 8,067 on Friday, closing at its lowest level in over three months. Private sector credit in Australia rose by 0.5% month-over-month in November 2024, in line with market consensus. Domestically, investors turned their attention to the upcoming release of the Reserve Bank of Australia’s meeting minutes, following its decision to keep rates unchanged at 4.35%. In the U.S., on Thursday, all three major indexes ended little unchanged following the previous day's selloff as investors evaluated the potential impact of a hawkish Federal Reserve outlook on corporate returns in the coming year. U.S. stock futures were little changed on Friday as investors braced for the upcoming PCE price index report, the Federal Reserve’s preferred measure of inflation: Dow -0.15% ; S&P 500 -0.27% ; Nasdaq -0.57% . Traders also anticipated the release of the US PCE price index for November later today, the Fed’s preferred inflation measure. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: People's Bank of China keeps key lending rates steady for second straight month, as expected Japan’s Nov headline inflation rate rises to three-month high of 2.9%; core inflation tops forecast Bank of Japan keeps policy rate unchanged at 0.25%, as widely expected Japan's Nov export growth accelerates to three-month high, while imports unexpectedly fall China's Nov retail sales slows as stimulus impact fades; unemployment rate held steady