Asia-Pacific Stocks Set for Softer Open as Tokyo Inflation Runs Hotter Than Expected

Asia-Pacific Stocks Set for Softer Open as Tokyo Inflation Runs Hotter Than Expected

Traders in Asia will assess key economic data, including inflation data from Tokyo and India's GDP for its fiscal second quarter, ending September.

Tokyo Inflation Runs Hotter Than Expected

Tokyo's inflation rate has been running hotter than expected, with the city's core consumer price index (CPI) rising 2.8% year-over-year in November, according to data released by the Japanese government. This is slightly ahead of forecasts.

Impact on Asia-Pacific Stocks

The higher-than-expected inflation rate in Tokyo is likely to have a negative impact on Asia-Pacific stocks, with investors expecting a softer open in the region. The Tokyo Stock Exchange (TSE) is expected to open lower, with the Nikkei 225 index potentially falling by 1-2%.

Other Key Economic Data

In addition to Tokyo's inflation rate, traders will also be assessing India's GDP for its fiscal second quarter, which ended in September. The data is expected to show a slowdown in economic growth, which could have a negative impact on Asian stocks.

Conclusion

The higher-than-expected inflation rate in Tokyo and the expected slowdown in India's economic growth are likely to have a negative impact on Asia-Pacific stocks. Investors are advised to be cautious and to wait for further data releases before making any investment decisions.

Sources

[1] Asia-Pacific stocks set for softer open as Tokyo inflation runs hotter than expected