Asia Business

Stock markets mostly climbed Tuesday before the release of key US inflation data later in the session.

The November consumer price index (CPI) figures follow Friday’s forecast-beating print on US wholesale inflation, which dented hopes the Federal Reserve would scale back the size of its next interest rate hikes.

The central bank is widely expected to lift interest rates 50 basis points Wednesday — a slowdown from the previous four 75-point hikes — but its post-meeting statement and comments from boss Jerome Powell will be closely followed.

While the general view is that policymakers will stop increasing borrowing costs next year, there is debate about how high they will peak and when they will start to come down.

“I think CPI will be important but not necessarily for this meeting, for which a 50 basis-point hike is well flagged, but rather it will help determine the extent of further tightening,” said Mitul Kotecha, of TD Securities.

“Don’t expect clearcut signals from the Fed… on what they expect to be doing at early 2023 meetings,” said National Australia Bank’s Ray Attrill.

Elsewhere, China’s shift away from its economically damaging zero-Covid policy continued to support sentiment as the world’s number two economy opens up.

Top Chinese officials are meeting this week to draw up their economic blueprint for re-emerging from Covid, with observers predicting more stimulus measures and pledges of support for the troubled property sector.

But there is also a worry among investors that the quick relaxation of containment measures such as mass testing and lockdowns might lead to a massive surge in infections that could overwhelm the healthcare system and weigh on the economy.

Still, the expected pick-up in demand in China boosted oil prices further, with both main contracts extending Monday’s strong gains.

“China’s reopening is coming, it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter,” said OANDA’s Edward Moya. 

Ahead of the Wall Street open, United Airlines unveiled an order of 100 new Boeing 787 Dreamliners with options for an additional 100 jets.

And the US Securities and Exchange Commission charged disgraced cryptocurrency tycoon Sam Bankman-Fried with defrauding customers of billions of dollars.

– Key figures around 1215 GMT –

London – FTSE 100: UP 0.4 percent at 7,475.26 points

Frankfurt – DAX: UP 0.8 percent at 14,421.53

Paris – CAC 40: UP 0.7 percent at 6,697.02

EURO STOXX 50: UP 1.0 percent at 3,959.22

Tokyo – Nikkei 225: UP 0.4 percent at 27,954.85 (close)

Hong Kong – Hang Seng Index: UP 0.7 percent at 19,596.20 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,176.33 (close)

New York – Dow: UP 1.6 percent at 34,005.04 (close)

Euro/dollar: UP at $1.0541 from $1.0539 on Monday

Dollar/yen: DOWN at 137.41 yen from 137.66 yen

Pound/dollar: UP at $1.2290 from $1.2268

Euro/pound: UP at 85.96 pence from 85.78 pence

Brent North Sea crude: UP 0.6 percent at $78.47 per barrel

West Texas Intermediate: UP 0.4 percent at $73.49 per barrel

China has filed a dispute with the World Trade Organization over US restrictions on chip exports, Beijing’s commerce ministry said in a statement late Monday, accusing Washington of threatening global supply chains.

The United States in October announced new export controls aimed at restricting China’s ability to buy and manufacture high-end chips with military applications, complicating Beijing’s push to further its own semiconductor industry and develop advanced military systems.

The moves include export restrictions on some chips used in supercomputing as well as stricter requirements on the sale of semiconductor equipment.

The aim is to prevent “sensitive technologies with military applications” from being acquired by China’s military, intelligence and security services, the US Commerce Department said in October.

However, China’s foreign ministry claimed Tuesday that the United States has “repeatedly used national security as an excuse to interfere in the normal operation of international trade”.

“All countries should stand up and not let Washington’s unilateralism and protectionism go unchecked,” foreign ministry spokesman Wang Wenbin said at a routine briefing.

“This concerns the stability of the global trade system and more importantly, international justice.”

China’s Ministry of Commerce on Monday had accused the United States of “obstructing normal international trade in products including chips and threatening the stability of the global industrial supply chain”, as well as violating international trade rules and engaging in “protectionist practices”.

The WTO dispute is intended to defend China’s “legitimate rights and interests”, the ministry said in its statement, urging Washington to “give up zero-sum thinking”.

The two superpowers have long faced off over a range of issues including technology, trade, Hong Kong, Taiwan and human rights.

Chinese leader Xi Jinping and US President Joe Biden pledged to repair frayed relations at a summit in Bali, Indonesia last month.

Days before the latest chip controls, the Pentagon added 13 more Chinese firms including drone manufacturer DJI and surveillance firm Zhejiang Dahua Technology to a blacklist of military-linked entities.

Markets were mixed Tuesday as nervous investors sat tight ahead of key US inflation data and a Federal Reserve policy decision but fresh pledges by China to open up from zero-Covid offered support.

The region was given a positive lead after Wall Street’s three main indexes raced out of the traps Monday, with analysts citing a survey by the central bank that showed inflation expectations falling.

The November consumer price index figures later in the day follow Friday’s forecast-beating print on wholesale inflation, which dented hopes the Fed could take a more dovish tilt in its monetary-tightening campaign.

The central bank is then widely expected to lift interest rates 50 basis points on Wednesday — a slowdown from the previous four 75-point hikes — but its post-meeting statement and comments from boss Jerome Powell will be closely followed.

While the general view is that policymakers will stop increasing borrowing costs next year, there is debate about how high they will peak and when they will start to come down.

“I think CPI will be important but not necessarily for this meeting, for which a 50 basis point hike is well flagged, but rather it will help determine the extent of further tightening and give clues to the terminal rate,” Mitul Kotecha, of TD Securities, said.

“However, we think the risks are asymmetric in that a higher CPI print will likely have a bigger impact than a lower print.”

But the Wall Street Journal reported that there were disagreements within the policy board about the way forward, with doves trying to limit the economic pain as they bring inflation down, while hawks want a tougher line on fighting prices by weakening the jobs market.

“In this light, don’t expect clearcut signals from the Fed… on what they expect to be doing at early 2023 (policy) meetings after a widely expected 50 basis points fund rate hike this week,” said National Australia Bank’s Ray Attrill.

Hong Kong rose after authorities announced a further easing of the city’s Covid rules, while Tokyo, Sydney, Singapore, Wellington, Bangkok and Jakarta were all well up.

However, Shanghai dipped along with Seoul, Taipei, Manila and Mumbai.

London, Paris and Frankfurt edged up at the open.

“It’s been a do-nothing day as investors take stock before the onslaught of a series of high-risk events,” said SPI Asset Management’s Stephen Innes.

China’s shift away from its economically damaging zero-Covid policy continued to support sentiment as the world’s number two economy opens up.

Meanwhile, top Chinese officials are meeting this week to draw up their economic blueprint for re-emerging from Covid, with observers predicting more stimulus measures and pledges of support for the troubled property sector.

But there is also a worry among investors that the quick relaxation of containment measures such as mass testing and lockdowns might lead to a massive surge in infections that could overwhelm the healthcare system and weigh on the economy.

Still, the expected pick-up in demand in China boosted oil prices further, with both main contracts extending Monday’s strong gains.

“China’s reopening is coming, it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter,” said OANDA’s Edward Moya. 

– Key figures around 0820 GMT –

Tokyo – Nikkei 225: UP 0.4 percent at 27,954.85 (close)

Hong Kong – Hang Seng Index: UP 0.7 percent at 19,596.20 (close)

Shanghai – Composite: DOWN 0.1 percent at 3,176.33 (close)

London – FTSE 100: UP 0.1 percent at 7455.50

Euro/dollar: UP at $1.0551 from $1.0539 on Monday

Dollar/yen: DOWN at 137.46 yen from 137.66 yen

Pound/dollar: UP at $1.2274 from $1.2268

Euro/pound: UP at 85.96 pence from 85.87 pence

West Texas Intermediate: UP 1.4 percent at $74.21 per barrel

Brent North Sea crude: UP 1.6 percent at $79.21 per barrel

New York – Dow: UP 1.6 percent at 34,005.04 (close)

Asian markets mostly rose Tuesday, with nervous investors sitting tight ahead of key US inflation data and a Federal Reserve policy decision but fresh pledges by China to open up from zero-Covid offering support.

The gains across the region came after Wall Street’s three main indexes raced out of the traps Monday, with analysts citing a survey by the central bank that showed inflation expectations falling.

The November consumer price index figures later in the day follow Friday’s forecast-beating print on wholesale inflation, which dented hopes the Fed could take a more dovish tilt in its monetary-tightening campaign.

The central bank is then widely expected to lift interest rates 50 basis points on Wednesday — a slowdown from the previous four 75-point hikes — but its post-meeting statement and comments from boss Jerome Powell will be closely followed.

While the general view is that policymakers will stop increasing borrowing costs next year, there is debate about how high they will end and when they will start to come down.

“It’s all going to depend on CPI numbers, whether the Fed is going to pivot or not,” Xi Qiao, at UBS Group AG, told Bloomberg Television.

“With the current inflation situation, a lot of the fundamental challenges that we have right now are going to go into 2023.”

But the Wall Street Journal reported that there were disagreements within the policy board about the way forward, with doves trying to limit the economic pain as they bring inflation down, while hawks want a tougher line on fighting prices by weakening the jobs market.

“In this light, don’t expect clearcut signals from the Fed… on what they expect to be doing at early 2023 (policy) meetings after a widely expected 50 basis points fund rate hike this week,” said National Australia Bank’s Ray Attrill.

In early Asian business, Hong Kong, Tokyo, Shanghai, Sydney, Seoul, Wellington, Taipei, Manila and Jakarta were all well up.

China’s shift away from its economically damaging zero-Covid policy continued to lift sentiment as the world’s number two economy opens up.

And on Monday, the country’s ambassador to the United States said: “In the near future I believe that measures will be further relaxed and international travel will become easier.”

Meanwhile, top Chinese officials are meeting this week to draw up their economic blueprint for re-emerging from Covid, with observers predicting more stimulus measures and pledges of support for the troubled property sector.

But there is also a worry among investors that the quick relaxation of containment measures such as mass testing and lockdowns might lead to a massive surge in infections that could overwhelm the healthcare system and weigh on the economy.

Still, the expected pick-up in demand in China boosted oil prices further, with both main contracts extending Monday’s strong gains.

“China’s reopening is coming, it won’t happen overnight, but it will provide a major boost to demand in the outlook next quarter,” said OANDA’s Edward Moya. 

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: UP 0.4 percent at 27,946.09 (break)

Hong Kong – Hang Seng Index: UP 0.6 percent at 19,585.54

Shanghai – Composite: UP 0.1 percent at 3,183.39

Euro/dollar: UP at $1.0547 from $1.0539 on Monday

Dollar/yen: UP at 137.75 yen from 137.66 yen

Pound/dollar: UP at $1.2276 from $1.2268

Euro/pound: UP at 85.92 pence from 85.87 pence

West Texas Intermediate: UP 0.9 percent at $73.82 per barrel

Brent North Sea crude: UP 0.9 percent at $78.67 per barrel

New York – Dow: UP 1.6 percent at 34,005.04 (close)

London – FTSE 100: DOWN 0.4 percent at 7,445.97 (close) 

China has filed a dispute with the World Trade Organization over US restrictions on chip exports, Beijing’s commerce ministry said in a statement late Monday, accusing Washington of threatening global supply chains.

The United States in October announced new export controls aimed at restricting China’s ability to buy and manufacture high-end chips with military applications, complicating Beijing’s push to further its own semiconductor industry and develop advanced military systems.

The moves include export restrictions on some chips used in supercomputing as well as stricter requirements on the sale of semiconductor equipment.

The aim is to prevent “sensitive technologies with military applications” from being acquired by China’s military, intelligence and security services, the US Commerce Department said in October.

But China’s Ministry of Commerce on Monday accused the United States of “obstructing normal international trade in products including chips and threatening the stability of the global industrial supply chain”, as well as violating international trade rules and engaging in “protectionist practices”.

The WTO dispute is intended to defend China’s “legitimate rights and interests”, the ministry said in its statement, urging Washington to “give up zero-sum thinking”.

The two superpowers have long faced off over a range of issues including technology, trade, Hong Kong, Taiwan and human rights.

Chinese leader Xi Jinping and US President Joe Biden pledged to repair frayed relations at a summit in Bali, Indonesia last month.

Days before the latest chip controls, the Pentagon added 13 more Chinese firms including drone manufacturer DJI and surveillance firm Zhejiang Dahua Technology to a blacklist of military-linked entities.

Wall Street stocks surged Monday while European and Asian markets dropped as investors braced for interest rate decisions this week from major central banks, including the Federal Reserve.

The dollar generally rose against its main rivals, while oil prices rebounded following sharp falls last week.

Analysts expect the Fed and the European Central Bank to announce rate hikes at their meetings this week.

And the Bank of England is on course for a ninth straight increase as policymakers try to bring down inflation from the highest levels in decades.

“Following a softer session in Asia, European markets are on edge, opening the week lower ahead of a critical few days,” said Victoria Scholar, head of investment at Interactive Investor.

“The ECB, the Fed and the Bank of England are expected to raise rates by 50 basis points each as the pace of tightening looks set to slow,” Scholar added.

The half-point jumps will still be steep rises, however, as central banks struggle to cool the pace of price increases, particularly in energy and food.

London, Frankfurt and Paris all closed lower. 

Wall Street stocks ended higher, as bargain hunters moved in following losses at the end of last week.

The Dow Jones Industrial Average jumped 1.6 percent and the S&P 500 closed 1.4 percent up.

Ahead of the Fed’s policy meeting, investors are set to digest US inflation data due Tuesday.

“It will be a fitting hump day on Wednesday, because the (inflation) data and the Fed decision are big humps the market needs to get over if it wants to make a run at a year-end rally,” said market analyst Patrick O’Hare at Briefing.com.

“If either, or both, disappoint in a meaningful way, then a year-end rally becomes a more challenging proposition.”

Traders are also keeping an eye on developments in China as it moves away from a zero-Covid policy that has hammered its economy, the world’s second largest after the United States.

The shift comes after widespread protests following nearly three years of strict controls.

Uncertainty surrounding the strength of China’s demand recovery has hit oil prices hard, with crude futures shedding more than 10 percent last week, but they rebounded on Monday.

“The gradual easing of Chinese Covid restrictions is… expected to lead to a further upswing in demand,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

But investors are wary of whether the relaxation of restrictions will lead to a swift rebound as Covid cases are expected to jump.

“The recent volatility in crude oil highlights the ongoing questions over whether the Chinese economy is truly ready to return or on the cusp of yet another series of restrictions,” said Joshua Mahony, senior market analyst at online trading platform IG.

– Key figures around 2140 GMT –

New York – Dow: UP 1.6 percent at 34,005.04 (close)

New York – S&P 500: UP 1.4 percent at 3,990.56 (close)

New York – Nasdaq: UP 1.3 percent at 11,143.74 (close)

EURO STOXX 50: DOWN 0.5 percent at 3,921.82 (close)

London – FTSE 100: DOWN 0.4 percent at 7,445.97 (close) 

Frankfurt – DAX: DOWN 0.5 percent at 14,306.63 (close)

Paris – CAC 40: DOWN 0.4 percent at 6,650.55 (close)

Tokyo – Nikkei 225: DOWN 0.2 percent at 27,842.33 (close)

Hong Kong – Hang Seng Index: DOWN 2.2 percent at 19,463.63 (close)

Shanghai – Composite: DOWN 0.9 percent at 3,179.04 (close)

Euro/dollar: DOWN at $1.0539 from $1.0546

Dollar/yen: UP at 137.66 yen from 136.57 yen

Pound/dollar: UP at $1.2268 from $1.2262

Euro/pound: DOWN at 85.87 pence from 85.90 pence

West Texas Intermediate: UP 3.0 percent at $73.17 per barrel

Brent North Sea crude: UP 2.5 percent at $77.99 per barrel

burs-rl-bys/bgs

Wall Street pushed higher but European and Asian stock markets dropped Monday as investors looked ahead to interest rate decisions this week from major central banks including the Federal Reserve.

The dollar rose against its main rivals, while oil prices rebounded following sharp falls last week.

Analysts are forecasting the Fed and the European Central Bank to announce smaller rate hikes at their meetings this week compared with recent decisions.

The Bank of England is meanwhile on course for a ninth increase in a row as policymakers try to bring down inflation from the highest levels in decades.

“Following a softer session in Asia, European markets are on edge, opening the week lower ahead of a critical few days for central bank action,” noted Victoria Scholar, head of investment at Interactive Investor.

London, Frankfurt and Paris all closed lower. 

Wall Street pushed higher, however, as bargain hunters moved in following losses at the end of last week.

“The ECB, the Fed and the Bank of England are expected to raise rates by 50 basis points each as the pace of tightening looks set to slow,” Scholar added.

The half-point jumps will still be steep rises, however, as central banks struggle to cool the pace of price increases, particularly regarding energy and food.

Ahead of the Fed’s policy meeting, investors were set to digest US inflation data due Tuesday.

“It will be a fitting hump day on Wednesday, because the (inflation) data and the Fed decision are big humps the market needs to get over if it wants to make a run at a year-end rally,” said market analyst Patrick J. O’Hare at Briefing.com.

“If either, or both, disappoint in a meaningful way, then a year-end rally becomes a more challenging proposition,” he added.

Traders were keeping an eye also on developments in China as it moves away from the zero-Covid policy that has hammered its economy, the world’s second largest after the United States.

The shift comes after widespread protests against the near three-year strategy, though there is concern about the expected spike in infections.

Uncertainty surrounding the strength of China’s demand recovery has hit oil prices hard, with crude futures shedding more than 10 percent last week, but they rebounded on Monday.

“The gradual easing of Chinese Covid restrictions is… expected to lead to a further upswing in demand,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

But investors are wary of whether the relaxation of restrictions will lead to a swift rebound as Covid cases are expected to boom.

“The recent volatility in crude oil highlights the ongoing questions over whether the Chinese economy is truly ready to return or on the cusp of yet another series of restrictions,” said Joshua Mahony, senior market analyst at online trading platform IG.

– Key figures around 1630 GMT –

New York – Dow: UP 0.8 percent at 33,742.91 points

EURO STOXX 50: DOWN 0.5 percent at 3,921.82

London – FTSE 100: DOWN 0.4 percent at 7,445.97 (close) 

Frankfurt – DAX: DOWN 0.5 percent at 14,306.63 (close)

Paris – CAC 40: DOWN 0.4 percent at 6,650.55 (close)

Tokyo – Nikkei 225: DOWN 0.2 percent at 27,842.33 (close)

Hong Kong – Hang Seng Index: DOWN 2.2 percent at 19,463.63 (close)

Shanghai – Composite: DOWN 0.9 percent at 3,179.04 (close)

Euro/dollar: DOWN at $1.0531 from $1.0534 on Friday

Dollar/yen: UP at 137.50 yen from 136.57 yen

Pound/dollar: UP at $1.2260 from $1.2262

Euro/pound: DOWN at 85.87 pence from 85.90 pence

West Texas Intermediate: UP 3.8 percent at $73.73 per barrel

Brent North Sea crude: UP 2.7 percent at $78.17 per barrel

burs-rl/pvh

Wall Street pushed higher but European and Asian stock markets dropped Monday as investors looked ahead to interest rate decisions this week from major central banks including the Federal Reserve.

The dollar traded mixed against its main rivals, while oil prices rebounded following sharp falls last week.

Analysts are forecasting the Fed and the European Central Bank to announce smaller rate hikes at their meetings this week compared with recent decisions.

The Bank of England is meanwhile on course for a ninth increase in a row as policymakers try to bring down inflation from the highest levels in decades.

“Following a softer session in Asia, European markets are on edge, opening the week lower ahead of a critical few days for central bank action,” noted Victoria Scholar, head of investment at Interactive Investor. 

Wall Street opened higher, however, as bargain hunters moved in following losses at the end of last week.

“The ECB, the Fed and the Bank of England are expected to raise rates by 50 basis points each as the pace of tightening looks set to slow,” Scholar added.

The half-point jumps will still be steep rises, however, as central banks struggle to cool the pace of price increases, particularly regarding energy and food.

Ahead of the Fed’s policy meeting, investors were set to digest US inflation data due Tuesday.

“It will be a fitting hump day on Wednesday, because the (inflation) data and the Fed decision are big humps the market needs to get over if it wants to make a run at a year-end rally,” said market analyst Patrick J. O’Hare at Briefing.com.

“If either, or both, disappoint in a meaningful way, then a year-end rally becomes a more challenging proposition,” he added.

Traders were keeping an eye also on developments in China as it moves away from the zero-Covid policy that has hammered its economy, the world’s second largest after the United States.

The shift comes after widespread protests against the near three-year strategy, though there is concern about the expected spike in infections.

Uncertainty surrounding the strength of China’s demand recovery has hit oil prices hard, with crude futures shedding more than 10 percent last week.

“The gradual easing of Chinese Covid restrictions is… expected to lead to a further upswing in demand,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

“However, concerns about the rapid spread of the virus remain, and China will have a tough fight on its hands, dealing with an expected explosion of infections while trying to open up the economy.”

– Key figures around 1430 GMT –

London – FTSE 100: DOWN 0.4 percent at 7,446.42 points

Frankfurt – DAX: DOWN 0.5 percent at 14,301.97

Paris – CAC 40: DOWN 0.5 percent at 6,644.94

EURO STOXX 50: DOWN 0.6 percent at 3,918.42

New York – Dow: UP 0.4 percent at 33,597.24

Tokyo – Nikkei 225: DOWN 0.2 percent at 27,842.33 (close)

Hong Kong – Hang Seng Index: DOWN 2.2 percent at 19,463.63 (close)

Shanghai – Composite: DOWN 0.9 percent at 3,179.04 (close)

Euro/dollar: UP at $1.0559 from $1.0534 on Friday

Dollar/yen: UP at 137.04 yen from 136.57 yen

Pound/dollar: UP at $1.2284 from $1.2262

Euro/pound: UP at 85.96 pence from 85.90 pence

West Texas Intermediate: UP 1.2 percent at $71.88 per barrel

Brent North Sea crude: UP 0.4 percent at $76.37 per barrel

burs-rl/imm

Thailand celebrated the arrival of its 10 millionth international visitor of 2022 on Saturday, according to the tourism authority, as the kingdom consolidated the recovery of its Covid-battered travel sector.

Thailand welcomed some 40 million people in 2019, but then the pandemic hit and travel was decimated as nations tightened border controls to contain the coronavirus.

With those restrictions easing worldwide Thailand’s travel numbers have begun a slow recovery and the government expects to generate nearly $16 billion in tourism revenue this year.

Traditional dancers and drummers at Bangkok’s Suvarnabhumi International Airport on Saturday welcomed passengers arriving on a Saudi Arabian Airlines flight that authorities believe clocked the 10-million milestone.

“The sky is open,” Thai Prime Minister Prayut Chan-O-Cha said in a speech at the airport.

“We would like to build confidence that Thailand is still one of the (top) tourist destinations of people around the world.”

Finance minister Arkhom Termpittayapaisith said this week that visitor numbers were expected to grow next year too.

Government figures suggest Thailand would welcome roughly 23 million tourists in 2023, while some analysts believe a full recovery in tourist numbers could happen in 2024.

Thai hotel owners and restauranteurs have breathed a sigh of relief as business has slowly picked up.

Marisa Sukosol, president of the Thai Hotels Association, welcomed the 10 million travellers milestone “after two years and a half of pain”.

“I think next year we will see continuous momentum of growth,” she said, pointing to the return of tourists from Russia and across the Asia-Pacific region.

But she cautioned against over-optimism — economic stagnation as well as lingering pandemic threats continue to impact the tourism sector.

While Thailand has benefited from the loosening of travel restrictions by other nations, its tourism industry has also been affected by the global economic slowdown and persistent inflation.

Recovery in the tourism sector is also heavily dependent on China relaxing international travel rules, Thai officials have said.

China was previously the biggest source of foreign tourists for Thailand. 

Global stocks had a mixed showing Friday, with hotter-than-expected US wholesale prices renewing concerns that the Federal Reserve will push on with aggressive policies against inflation.

Investors have been poring over economic data as they try to anticipate if the US central bank will shift to a softer approach to interest rate hikes at a regular meeting next week.

While inflation has shown signs of easing, government data released Friday showed that producer prices still remained elevated, sending key US indices into the red.

Meanwhile, markets welcomed China’s easing of its zero-Covid restrictions, which have hammered the world’s second biggest economy.

China’s consumer inflation slowed further in November as well, falling below two percent and giving authorities room to unveil fresh stimulus measures.

Hong Kong shares closed sharply higher Friday, building on big gains for the week while Chinese mainland markets were also higher.

European markets also ended the day higher.

Wall Street stocks finished lower, with the S&P 500 and Nasdaq Composite Index both shedding 0.7 percent, while the Dow Jones Industrial Average fell 0.9 percent.

This came after the producer price index — a gauge of inflation — rose by 0.3 percent in November, more than analysts expected.

“Wall Street had a somewhat mixed day of economic data,” said Edward Moya of the OANDA trading platform.

“A hot PPI report was then countered by a University of Michigan report that showed inflation expectations are coming down quickly,” he added in a note.

For now, markets are keeping a close eye on consumer price data due next week, which in turn could have a bearing on the Fed’s monetary policy path.

The Fed has raised rates by 0.75 percentage points in each of its last four meetings, but is widely expected to slow the pace after central bankers gather next week.

However, investors are concerned that a strong jobs market and other data might convince the Fed to tighten monetary policy longer than hoped.

The European Central Bank and the Bank of England also have rate decisions due next week after hiking their rates sharply this year.

“The hotter-than-expected PPI print called into question the ‘peak inflation’ narrative, although traders know that it is too late for the Fed to change its mind about a 50 (basis points) hike next week,” said Fawad Razaqzada, market analyst at Forex.com and City Index.

Elsewhere, oil prices jumped by more than one percent as Russian President Vladimir Putin threatened to cut production after Western nations imposed a $60 price cap on Russian crude.

“Today’s modest rebound however doesn’t change the fact that oil prices are now well below the levels they were at the time of the Russian invasion of Ukraine,” noted market analyst Michael Hewson at CMC Markets.

– Key figures around 2130 GMT –

New York – Dow: DOWN 0.9 percent at 33,476.46 (close)

New York – S&P 500: DOWN 0.7 percent at 3,934.38 (close)

New York – Nasdaq: DOWN 0.7 percent at 11,004.61 (close)

EURO STOXX 50: UP 0.5 percent at 3,942.62 (close)

London – FTSE 100: UP less than 0.1 percent at 7,476.63 (close)

Frankfurt – DAX: UP 0.7 percent at 14,370.72 (close)

Paris – CAC 40: UP 0.5 percent at 6,677.64 (close)

Tokyo – Nikkei 225: UP 1.2 percent at 27,901.01 (close)

Hong Kong – Hang Seng Index: UP 2.3 percent at 19,900.87 (close)

Shanghai – Composite: UP 0.3 percent at 3,206.95 (close)

Euro/dollar: DOWN at $1.0534 from $1.0560 on Thursday

Dollar/yen: DOWN at 136.57 yen from 136.61 yen

Pound/dollar: UP at $1.2262 from $1.2239

Euro/pound: DOWN at 85.90 pence from 86.24 pence

Brent North Sea crude: DOWN 0.1 percent at $76.10 per barrel

West Texas Intermediate: DOWN 0.6 percent at $71.02 per barrel