Asian equities experienced a mixed performance overnight, influenced by the previous day's downturn in US stocks attributed to rising US inflation, reinforcing the expectation of prolonged elevated levels. Notably, markets in India, Indonesia, Malaysia, and Pakistan were closed in observance of Eid al-Fitr, marking the end of Ramadan. The Asia Dollar Index saw a decline of -0.21% against the US dollar during the same period.
Contrary to expectations, China reported a lower-than-anticipated Consumer Price Index (CPI) for March, with a modest increase of +0.1% compared to the estimated 0.4% and the previous month's 0.7%. Noteworthy fluctuations were observed in various sectors, with hog futures surging by +6.74% in March, while food, alcohol, tobacco, and transport/communications experienced declines. The Producer Price Index (PPI) met expectations at -2.8%, following February's -2.7%. This data prompted investors to anticipate additional policy support to address weak domestic consumption and ongoing real estate concerns.
