Nikkei Trades at a New 34-year High; China Inflation Declines in the Third Consecutive Month

Arjun Pandit
12 Jan, 2024
Mumbai

Asian markets traded mostly higher on Friday, with Japan's indexes leading the gainers in the region.

The Nikkei index advanced 1.1% to 35,435.04, reaching a new 34-year high on hopes that the Bank of Japan will keep its ultra-loose monetary policy intact, and the yen weakened to 145 against the U.S. dollar.

China's market indexes lacked direction after the release of consumer and producer price inflation and international trade data.

The Hang Seng index inched up 0.03% to 16,307.10, and the CSI 300 index fell 0.2% to 3,290.17.

Consumer and producer prices continued to decline in December, on the back of weak consumer demand and foreign orders.

The consumer price index decreased for the third month in a row and fell 0.3%, while the producer price index declined 2.7% from a year ago, respectively.

China's exports unexpectedly rose 2.3% to $303.6 billion, and imports edged up 0.2% to $228.2 billion, resulting in a trade surplus increase of $75.34 billion.

Weak domestic demand kept overall import growth low.

In 2023, China's exports decreased 4.6% to $3.38 trillion and imports fell 5.5% to $2.56 trillion, resulting in a trade surplus decline of 6% to $820 billion.

Elsewhere in the region, the KOSPI index fell 0.8% to 2,520.49 and the ASX 200 index fell 0.3% to 7,489.20.

 

India Indexes Advanced After TCS and Infosys Beat Estimates

Stocks in Mumbai opened on a higher note after investors digested a flood of international economic updates and quarterly results from tech services exporters.

The Nifty and Sensex indexes gained 0.3% in early trading after U.S. inflation accelerated in December, but China's consumer prices declined in the month.

Moreover, China's exports and imports rose in December on the back of rising demands for solar cells, electric vehicles, and lithium batteries.

On the domestic earnings front, TCS reported quarterly profit increased 2%, while Infosys net income decreased by 7%.

Investors are looking forward to the release of quarterly results from HCL and Wipro later in the day.

India's inflation and industrial output data are also scheduled to be released later in the day.

Volatile food prices are likely to keep overall inflation high.