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Asian stocks close higher after Chinese inflation slows

Asian stocks closed higher on Friday (9), after data indicating a slowdown in Chinese inflation and providing the green light for the country’s authorities to continue with plans for granting economic stimulus.

China’s consumer price index (CPI) rose 2.5% year-on-year in August, compared with a 2.7% rise in July, the National Bureau of Statistics (NBS) said. acronym in English).

China’s producer price index (PPI) rose 2.3% last month, down from 4.2% in July.

For Capital Economics, the result leaves room for the People’s Bank of China (PBoC) to cut interest rates again over the next few months, while the second largest economy on the planet slows due to strict measures to control the coronavirus.

“The PBoC had cut most base rates in August, and we continue to anticipate further cuts throughout the rest of the year.”

Against this backdrop, the Shanghai composite ended the session up 0.82% at 3,262.05 points, while the less comprehensive Shenzhen composite rose 0.65% at 2,118.11 points.

In Hong Kong, the Hang Seng rose 2.69% to 19,362.25 points.

After six consecutive days of losses, business in the territory was mainly supported by real estate stocks, including Country Garden Holdings (+10.50%) and Meituan (+4.90%).

The mild climate also spread to other Asian markets, after a positive trading session on Wall Street.

Despite the firm commitment of the Federal Reserve (Fed, the US central bank) to fight inflation, reinforced on Thursday (8) by President Jerome Powell and other leaders, investors assess that part of the monetary tightening is priced in.

As a result, the Nikkei index, on the Tokyo Stock Exchange, rose 0.53% to 28,214.75 points.

After falling to 24-year lows, the yen rebounded against the dollar on Friday.

Bank of Japan (BoJ) governor Haruhiko Kuroda discussed the currency tumble with the country’s prime minister, Fumio Kishida, and said rapid fluctuations in the exchange rate are undesirable.

In South Korea, the Kospi index in Seoul advanced 0.33% to 2,384.28 points.

In Taiwan, the Taiex appreciated 1.20%, to 14,583.42 points.

Oceania

In Oceania, Sydney’s S&P/ASX 200 rose 0.66% to 6,894.20 points.

Source: CNN Brasil

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