Asian Markets Wait on US Inflation as China PPI Surges and Oil Nears $106
Asian markets traded mixed as investors awaited US inflation data, while China's producer prices surged by 5% in September amid rising fuel costs and oil above $106.
Asian stock markets traded with slight movements on Tuesday as global investors awaited critical US inflation data for September. Tokyo's Nikkei index rose 0.8%, while Hong Kong's Hang Seng and the Shanghai Composite traded relatively stable.
China's Producer Prices Surge
China's producer price index (PPI) increased by 5% in September, marking the fastest pace in over four years, driven by rising fuel costs for businesses. This surge exceeded analyst forecasts of 4.5% and sharply accelerated from 3.8% in the previous month. Meanwhile, consumer prices rose 0.9% year-on-year, slightly below forecasts of 1% but higher than August's 0.8%.
These high inflation figures come as the Chinese economy grapples with its slowest growth rate in more than three years, with second-quarter GDP expanding by 4.3%—less than anticipated. Oil prices climbed during the morning session amid concerns over supply disruptions, as regional tensions escalated due to fighting between Iran-backed Houthis and Saudi Arabia. WTI crude rose 0.6% to trade at $94.7 per barrel, and Brent crude advanced 0.6% to $106.3 per barrel.
US Inflation Focus and Wall Street Earnings
Investors are closely monitoring the US consumer price index for September, scheduled for release at 15:30 Israel time. Economists surveyed by Dow Jones expect annual inflation to accelerate to 3.6%, compared to 3.4% previously.
Bank of America shares fell 1.7% in after-hours trading after federal regulators imposed fines totaling more than $1.2 billion for failing to report suspicious transactions exceeding $5 billion.
On Wall Street, the Dow Jones dropped 0.4%, the Nasdaq eased 0.2%, and the S&P 500 closed virtually unchanged. Bank of America is set to release its third-quarter earnings report before the opening bell, alongside financial giants Morgan Stanley and semiconductor equipment manufacturer ASML.
