Asian equities begin the session mixed, following the subdued handover from Wall Street, where the S&P 500 closed on the backfoot ahead of threatening U.S. inflation data. A higher inflation playbook could dominate today’s session as Chinese PPI and CPI came above the market’s expectations. The CPI came at the fastest pace of increase since September 2020, and the PPI printed a new record pace of increase. China National Bureau of Statistics said October CPI was affected by weather, commodities demand and costs, while the tight supply of energy and resources are reasons for the increase in PPI.
On the risk front, Fantasia Holdings noted that it faces liquidity issues and talks with relevant creditors. Also on the radar, reports note that foreign investors are buying Chinese developers’ dollar bonds at low prices at a time when frequent defaults on these bonds by cash-strapped developers caused widespread panic. For the session ahead, traders will be paying close attention to US CPI, which is the highlight of the week in the U.S. ahead of Veteran’s Day Thursday.
