Asian markets showed mixed performance, with US markets closed on Thursday for the Thanksgiving holiday.
Tokyo’s Nikkei 225 fell 0.4% to 38,191.93 after government data revealed Tokyo’s inflation, seen as a key indicator of national trends, rose to 2.6% in November, up from 1.8% in October, largely driven by soaring fresh food prices. Core inflation, excluding fresh food, increased more modestly to 2.2% year-on-year from 1.8% in October.
The uptick in inflation has fueled expectations that the Bank of Japan may proceed with further hikes to its benchmark lending rate, pushing the yen’s value higher. The yen traded at 149.94 against the US dollar, strengthening from levels above 155 yen per dollar a week earlier. The central bank’s policy rate currently stands at 0.25%, following its move in March to end years of negative rates after achieving its 2% inflation target.
South Korea’s Kospi dropped 2% to 2,454.78, as the central bank lowered its benchmark interest rate on Thursday to ease pressure on the slowing economy. Australia’s S&P/ASX 200 slipped 0.1% to 8,436.20.
Hong Kong’s Hang Seng Index gained over 1% in midday trading, closing up 0.1% at 19,389.12. Meanwhile, China’s Shanghai Composite Index surged 1.1% to finish at 3,332.50.
