Buildings in Auckland, New Zealand, on Monday, May 22, 2023.
Bloomberg | Bloomberg | Getty Images
Asia-Pacific markets were mixed on Friday after inflation in the U.S. came in lower than expected, raising hopes markets could see a “soft landing” in the inflation fight.
July consumer prices gained 3.2% on an annual basis, less than the 3.3% consensus from economists polled by Dow Jones. On a month-to-month basis, inflation increased 0.2%, in-line with estimates.
The report also said real average weekly earnings were unchanged last month in another positive sign.
However, the core inflation rate — which strips out prices of food of energy — was at 4.7%, the lowest since October 2021 and lower than the 4.8% expected.
In Asia, Australia’s S&P/ASX 200 was marginally below the flatline, while South Korea’s Kospi was up 0.17% and the Kosdaq gained 0.5%. Japan’s markets are closed for a public holiday.
Hong Kong’s Hang Seng index slipped 0.1%, while stocks on mainland China were also generally lower, with the CSI300 index trading close to the flatline.
Overnight in the U.S., all three major indexes gained on the softer inflation print, with the Dow Jones Industrial Average adding 0.15%. The S&P 500 inched up 0.03%, and the Nasdaq Composite rose 0.12%.
— CNBC’s Samantha Subin and Alex Harring contributed to this report
