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 0.24% lower and ended the day at 7,340.1. South Korea’s Kospi was down 0.4% to close at 2,591.3 and the Kosdaq gained 0.1% to finish at 912.2.
Hong Kong’s Hang Seng index slipped 0.96%, while stocks on mainland China were also generally lower, with the CSI300 index trading 1.7% down. Japan’s markets are closed for a public holiday.
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
