UK inflation, currencies and oil prices

Employees wearing face masks work in the trading room at the headquarters of Daiwa Securities Group Inc. in Tokyo, Japan on Thursday, October 14, 2021.

Toru Hanai | Bloomberg via Getty Images

SINGAPORE – Asia-Pacific markets traded mixed on Thursday, following overnight losses on Wall Street as shares in Japan, Hong Kong and mainland China struggled for losses. earnings.

Hong Kong’s Hang Seng Index fell 1.29% to 25,319.72 while the Nasdaq-style tech board, the Hang Seng Tech Index, sold nearly 3%.

Some of the top tech names listed in Hong Kong fell sharply: Alibaba fell 5.34%, Meituan fell 2.46%, JD 3.58%, Tencent 2.4% and Baidu fell 7, 84%.

A day earlier, Baidu reported third quarter revenue that exceeded market expectations. But the company warned that ad spending had been affected by slower economic growth in China. Baidu derives most of its revenue from advertising.

Mainland Chinese stocks also traded lower: the Shanghai composite lost 0.47% to 3,520.71 while the Shenzhen component fell 0.9% to 14,579.17 .

Stocks in India traded lower, Nifty 50 down 0.58% and Sensex 0.58% in afternoon trading. Digital payments giant Paytm debuted on the stock exchange on Thursday, following India’s largest initial public offering to date.

But investors weren’t impressed – the stock was down more than 22% at 4:15 p.m. HK / SIN, after previously falling 24%.

In South Korea, the Kospi lost 0.51% to 2,947.38, after fluctuating between gains and losses early in the session. The Kosdaq rose 0.15% to 1,032.77.

Japanese stocks extended losses from the previous session. The benchmark Nikkei 225 was down 0.3% to 29,598.66 while the Topix was down 0.14% to 2,035.52.

Australian stocks held off the general downtrend, with the ASX 200 rising 0.13% to 7,379.20. But the energy sector fell amid a selloff in crude futures. Oil fields like Santos, Oil Search and Woodside Petroleum fell more than 1% each.

The nation’s big four banks were also under pressure: ANZ shares closed down 1.29%, the Commonwealth Bank fell 1.55%, Westpac lost 0.98%, and the National Australia Bank fell. down 0.69%.

“Stocks were soft overnight amid inflation concerns as UK inflation turned higher than expected and supply constraints weighed on housing starts in the US,” ANZ Research analysts said in a morning note.

The UK consumer price index rose 4.2% in the 12 months to October, down from 3.1% in September and beating economists’ expectations by 3.9%.

Wednesday’s data is expected to increase pressure on the Bank of England to act on interest rates at its December meeting. The central bank kept rates stable in November, defying the expectations of many investors that it would be the first major central bank to raise rates in the wake of the coronavirus pandemic.

Declining crude price

Oil price declined in the previous session amid growing concerns over oversupply and picking up demand.

The price fell further on Thursday during Asian trading hours. Brent crude futures fell 0.86% to $ 79.59 a barrel while US West Texas Intermediate crude futures fell 1.33% to $ 77.32.

“The release of the weekly US Energy Information Administration report showing a sharp drop in inventories did little to stop the sale,” analysts at ANZ Research wrote Thursday.

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“This may be due to the bearish tone the IEA and OPEC set earlier this week in their monthly oil market reports. Both expect the market to go into surplus in the not too distant future.” , they added.

President Joe Biden’s administration has also called on some of the world’s largest oil-consuming countries to consider releasing some of their crude reserves to coordinate efforts to lower prices and help recovery. economic, according to the media.

Elsewhere in the currency market, the US dollar fell slightly against a basket of its peers, trading down 0.15% to 95.682 – the dollar index is currently trading at close levels levels never seen for over a year.

“A general sense of uncertainty hangs over the markets as inflation risks persist with the imminent announcement of the US Fed’s chairmanship,” Mizuho Bank’s Venkateswaran Lavanya said in a note Thursday.

The Japanese yen changed hands at 114.10 per dollar while the Australian dollar rose 0.21% to $ 0.7281.

CNBC’s Matt Clinch contributed to this report.

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Felix J. Dixon