Asia-Pacific Stocks Surged After Japan’s Inflation Data Reached The Highest Rate Since 1981

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Investors analysed Japan’s inflation data, and the markets in the Asia-Pacific region experienced a surge due to optimistic sentiment.

Consumers were faced with soaring prices in December, as the nationwide core consumer price index increased by a whopping 4% annually – a rate not seen since 1981.

The Nikkei 225 experienced an impressive 0.56% upsurge in its session, concluding at a mark of 26,553.53, while the Topix ended with a milder yet still notable 0.59% increase to 1,926.87 points by closing time.

The 10-year Japanese Government Bond yield experienced a slight decline of 0.386%, dropping even lower than the central bank’s highest threshold for acceptance.

The Kospi in South Korea saw an impressive rise of 0.63%, now sitting at 2,395.26, while the Kosdaq also surged by 0.71% to 717.97 – a positive sign for investors and traders alike.

The S&P/ASX 200 in Australia made a comeback today, climbing 0.23% to 7,452.2 despite initial losses earlier in the day.

In its final hour of trade, Hong Kong’s Hang Seng index soared by a remarkable 1.6%, while the Hang Seng Tech index saw an even more significant surge in value at 2.63%. It marked itself as the most considerable gainer among Asian markets that day.

The Shanghai Composite, a benchmark index of the Chinese mainland market, climbed by 0.76% to close at 3,264.81 in response to no change made to China’s 1-year and 5-year loan prime rates – an indication from the nation’s central bank that monetary policy remains steady and supportive for investors.

“The Japan data was the key catalyst for the rally,” commented a senior strategist from Daiwa Securities. “Investors are now slightly more positive about the outlook for 2023 amid hopes of a faster global economic recovery.”

The Shenzhen Component rose to a formidable 11,980.62 – an impressive 0.57% increase.

Investors on Wall Street felt a deep sense of anxiety as they observed the Federal Reserve further increase borrowing costs, despite evidence that inflation is beginning to slow. As a result, stocks plummeted significantly.

The Dow Jones Industrial Average experienced a setback for three consecutive days, relinquishing any gains achieved during its brief New Year’s rally.

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