Japan Awaits BoJ Governor Nomination, China Bank Loans Increase Revives Faster Recovery Hopes

Arjun Pandit
13 Feb, 2023
Mumbai

Asian markets closed lower on the worries of inflation and ahead of the U.S. inflation report on Tuesday. 

The U.S. dollar traded at one-month high and the Japanese yen sank nearly 1% ahead of the formal announcement of the next Bank of Japan Governor nominee on Tuesday. 

Kazuo Ueda, former BoJ policy board member and academic, is set to be nominated for the role by Prime Minister Fumio Kishida.  

The Nikkei 225 index decreased 0.9% to 27,427.32 and the yen weakened to 132.40 against the U.S. dollar. 

Markets in China advanced bucking the trend in regional trading after new bank loans jumped more than expected in January, according to the latest data from Bank of China. 

New loans issued by banks increased to 4.9 trillion yuan in January from 1.4 trillion yuan in December. 

M2 broad money supply expanded 12.6% from a year ago in January, faster than the 11.8% increase in December.

The Shanghai Composite Index  increased 0.7% to 3,284.16 and the Hang Seng index fell 0.1%. 

Markets in India continued to drift lower after crude oil prices rebounded and inflation worry resurfaced. After, the close,  

The Sensex index declined 0.4% or 250.86 points to 60,431.84 and the Nifty index declined 0.5% to 17,770.90. 

The Indian rupee edged lower to 82.59 against the dollar after the consumer price index accelerated in January from December. 

The Consumer Price Index increased to 6.5% in January from 5.7% in December, the statistical office said Monday. 

The latest inflation data crossed the upper limit set by the Reserve Bank of India and last week the Reserve Bank of India increased its key lending rates by a smaller 25 basis points after inflation drifted below the upper limit in December. 

Food prices increased at a faster pace of 5.9% from 4.2% in December.

Retail inflation in January rose 0.46% from the previous month. 

India's Wholesale price inflation data is scheduled to be released on Tuesday.