Investing.com– Most Asian stock markets declined on Thursday as investors were cautious about the U.S. interest rate outlook after a stubbornly strong inflation print, while South Korean stocks were muted despite an unexpected rate cut by its central bank.
Regional markets took a weak lead-in from Wall Street, as U.S. stock benchmarks fell from record highs after a swathe of strong economic readings. Losses in major technology stocks also weighed
Data showed that the personal consumption expenditures (PCE) price index – U.S. Federal Reserve’s preferred measure of underlying inflation picked up in line with estimates. Another reading showed that the U.S. economy expanded at a solid pace in the third quarter.
Wall Street futures were flat in Asian trade, ahead of the Thanksgiving holiday.
Sentiment towards regional markets also remained weak after U.S. President-elect Donald Trump threatened to impose additional trade tariffs on China, which could spark a renewed trade war between the world’s biggest economies.
China’s Shanghai Shenzhen CSI 300 index fell 0.4%, while the Shanghai Composite index was largely unchanged. Hong Kong’s Hang Seng index declined 1.2%.
Chinese equities are expected to face near-term headwinds as lingering tariff uncertainties and limited domestic stimulus dampen market sentiment, UBS analyst said in a note.
Thailand’s SET Index dropped 0.3%, and the Philippines’ PSEi Composite index lost 0.8%, while India’s Nifty 50 Futures pointed to a muted open.
Bucking the trend, Japan’s Nikkei 225 and TOPIX indexes rose 0.6%, and 0.5% respectively.
Bank of Korea cuts rates by another 25 bps
