Asian Markets Mostly Rallied as Soft US Inflation Boosted Sentiment

Most of Asian markets climbed on Thursday (Jan. 16) as the report of lower-than-expected inflation in the US boosted markets' confidence in the Fed to have more rate cuts. Investors gained positive signals from Wall Street's overnight rally while monitoring Japan's central bank rate decisions.

 

Japan's Nikkei 225 index closed up 0.33%, underperforming regional peers as the yen strengthened on the speculation of a Bank of Japan (BoJ) rate hike. A stronger yen, however, reduced Japan's export demands, thus curbing gains of export-driven stocks. The BOJ will release its rate decision next week.

 

Chinese markets gained fairly as investors awaited key economic data, including fourth-quarter GDP figures, industrial production, and retail sales set for release on Friday. The mainland's Shanghai Composite Index rose 0.28%. Hong Kong's Hang Seng Index advanced 1.23%.

 

South Korea's KOSPI climbed 1.23%, defying the central bank's unexpected rate decision. The Bank of Korea chose to keep its policy rate at 3.00% while the public expected a rate cut. The decision intended to stabilize South Korea's currency, won, which has plunged to a 15-year low.

 

Elsewhere, as of 4:30 pm SGT., Singapore’s Straits Times Index advanced 0.95%; FTSE Bursa Malaysia KLCI fell 0.20%. As of 4:45 pm SGT., India’s Nifty 50 index rose 0.59%.