SINGAPORE-Asia-Pacific stock markets rose in trading on Thursday as investors reacted to the release of China’s September inflation data.
Mainland China’s Shanghai Composite Index rose 0.15%, while the Shenzhen Stock Exchange component stocks rose about 0.1%.
Official data on Thursday showed that producer inflation soared in September. The producer price index in September surged 10.7% from the same period last year, slightly higher than the 10.5% expected in a Reuters survey.
Compared with the same period last year, China’s consumer price index in September also rose by 0.7%. This is slightly lower than the 0.9% year-on-year growth predicted by the Reuters survey.
“Inflationary pressures, especially… in terms of producer prices, are quite persistent and will also be a problem next year,” Pinpoint Asset Management chief economist Zhang Zhiwei told CNBC’s “Asian Signpost” on Thursday.
He said that some of the impact of rising energy prices will also translate into higher consumer prices next year.
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Zhang warned that continued inflationary pressures also limited the People’s Bank of China’s room for loosening monetary policy.
The governor of the People’s Bank of China, Yi Gang, said on Wednesday that according to the translation of an article published by CNBC on the website of the People’s Bank of China on Thursday, China’s inflation is generally moderate.
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Currency and oil
The U.S. dollar index, which tracks the U.S. dollar against a basket of currencies, traded at 94.042 after falling from more than 94.4 recently.
The Japanese yen traded at 113.55 against the US dollar, which was lower than the level of 112.5 against the US dollar earlier this week. The Australian dollar was quoted at US$0.7386 against the US dollar, which was higher than yesterday’s level below US$0.735.
Oil prices rose in the afternoon of the Asian trading session, and the international benchmark Brent crude oil futures rose 0.64% to US$83.71 per barrel. US crude oil futures rose 0.65% to US$80.96 per barrel.