China’s CPI fell at the fastest pace since November 2020

Chinese stocks fell on Monday, December 11, after data showed continued deflationary pressures as the country’s economy suffers from weak domestic demand. In contrast, Japanese stocks jumped amid increasing bets that its central bank may not raise interest rates next week.

Inflation figures for November in China showed a faster-than-expected decline in consumer prices, and the CPI fell 0.5% year-on-year, which is more than the 0.1% decline expected by economists polled by Reuters, and this comes as the fastest decline since November 2020.

The producer price index fell by 3% year-on-year, compared with a 2.6% decline in October and expectations for a 2.8% decline. It also marked the 14th straight month of decline in the PPI and the fastest since August.

China’s CSI 300 index opened 1.28% lower, while Hong Kong’s Hang Seng Index was down 0.9% at the open. Both indicators lagged behind the rest of the Asia-Pacific region.

The Topix rose 1.65%, while the broad-based Topix saw smaller gains of 1.35%.

Investors had been hoping that the Bank of Japan might not raise interest rates at next week’s monetary policy meeting, and the focus this week will be on the US Federal Reserve’s monetary policy decision, as it is largely expected to keep interest rates steady at a range of 5.25% and 5.5%. %.

In Australia, the S&P/ASX 200 index started Monday up 0.21%, hitting a three-month high.

South Korea’s Cospi rose 0.06% and small-cap Kosdaq rose 0.92%.