Asia stocks hit seven-month high on China and CPI bets

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SINGAPORE, Jan 12 ― Asian stock markets mostly pushed higher today, ahead of US consumer price data that investors hope will confirm inflation is in retreat, while the yen...

SINGAPORE, Jan 12 ― Asian stock markets mostly pushed higher today, 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 1330 GMT, economists expect the rise in core US consumer prices slowed to an annual pace of 5.7 per cent in December, from 6 per cent 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 per cent to US$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 per cent and 30-year yields down 7 bps to 3.6874 per cent.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 yesterday also gave inflation expectations something of a jolt in Japan by announcing plans for wages hikes of as much as 40 per cent.

 

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