A Sydney ferry passes the Opera House and skyline of the central business district area on May 12, 2020 in Sydney, Australia.
James D. Morgan | Getty Images
Asia-Pacific markets open higher on Thursday after the U.S.’ October consumer price index reading fueled expectations for the Fed to cuts rates again in December.
The CPI came in line with expectations, accelerating slightly to an annual inflation rate of 2.6%. Core CPI, which straps out volatile food and energy prices, gained 3.3% last month, also matching expectations.
Australia’s unemployment rate remained steady in October at 4.1%, as economists had expected, while the number of employed people increased 15,900 from a month ago, falling short of the 25,000 that was expectationed.
The participation rate, which measures the share of working age people currently employed or seeking a job, stood at 67.1%, slightly below an estimated 67.2%.
Australia’s S&P/ASX 200 was up 0.43%.
Japan’s Nikkei 225 gained 0.82% while the Topix added 0.92%.
Japanese yen appreciated slightly against the U.S. dollar to 155.36 on Thursday, after falling below the 155 benchmark overnight, hovering near the lowest level in over four months.
South Korea’s Kospi advanced 0.82%, while the Kosdaq Index was up 1.73%. The country’s markets opened an hour later than usual on Thursday because of national college entrance exams.
Futures for Hong Kong’s Hang Seng index stood at 19,612, set to extend a multi-day losing streak that saw the index close at 19,823.45 Wednesday.
Overnight in the U.S., the S&P 500 and Dow Jones Industrial Average closed near the flatline following the release of the inflation report.
The S&P 500 inched higher by 0.02% to close at 5,985.38, while the 30-stock Dow ticked up 47.21 points, or 0.11%, to 43,958.19. The Nasdaq Composite ended the day with a 0.26% decline and closed at 19,230.74.
The inflation data puts the Federal Reserve on course to lower interest rates next month, with markets pricing in a 80.8% likelihood of a quarter-percentage-point cut, according to the CME FedWatch Tool.
— CNBC’s Brian Evans and Hakyung Kim contributed to this report.
