Asian stocks rise ahead of US inflation data and Japan’s policy review

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MSCI’s broadest index of Asia-Pacific shares outside Japan rises 0.5%, the Nikkei falls 0.2%, while the yen rises as Japan reviews ultra-easy policy side-effects

Singapore — Asian stock markets mostly pushed higher on Thursday, ahead of US consumer price data that investors hope will confirm inflation is in retreat, while the yen rose with a report Japan will next week review the side-effects of its ultra-easy policy.

Due at 1.30pm GMT, economists expect the rise in core US consumer prices slowed to an annual pace of 5.7% in December, from 6% a month earlier. Month-on-month headline inflation is seen at zero. “We expect a below consensus CPI print, which if it materialises, could push this rally even further.” Brent crude futures rose more than 3% to $83 a barrel overnight. US treasuries rallied at the longer end of the curve, with benchmark 10-year yields down 6 bps to 3.5558% and 30-year yields down 7 bps to 3.6874%.Against hopes for gentler central banks in the West, investors are also hoping recovery in China can help global growth and are eyeing a potential policy shift in Japan.

Uniqlo parent Fast Retailing on Wednesday also gave inflation expectations something of a jolt in Japan by announcing plans for wages hikes of as much as 40%.

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