Market Talk – Friday, Jan. 22

ASIA:

Barring another wave of COVID-19 infections, the worst is over for India’s economy and policymakers may soon have more room to support recovery, the central bank said in its January bulletin released on Thursday. The RBI slashed interest rates early last year to cushion the shock from the coronavirus crisis but has left rates unchanged in recent months, cautious of rising inflation. The RBI expects Asia’s third-largest economy to contract by 7.5% in the current fiscal year to March, but analysts believe it is likely to escape recession and see modest growth in the current quarter.

Japan’s core consumer prices slumped in December at the fastest annual pace in a decade, a sign of intensifying deflationary pressures that sharpen the case for the central bank to come up with better ways to combat the deepening impact of the COVID-19 pandemic. The nationwide core consumer price index (CPI), which includes oil but excludes fresh food costs, fell 1.0% in December from a year earlier, government data showed, slightly less than a median market forecast for a 1.1% drop. It was the biggest annual fall since September 2010, when Japan was grappling with grinding deflation and a spike in the yen that dealt a severe blow to the export-reliant economy.

The major Asian stock markets had a negative day today:

  • NIKKEI 225 decreased 125.41 points or -0.44% to 28,631.45
  • Shanghai decreased 14.51 points or -0.40% to 3,606.75
  • Hang Seng decreased 479.91 points or -1.60% to 29,447.85
  • ASX 200 decreased 23.30 points or -0.34% to 6,800.40
  • Kospi decreased 20.21 points or -0.64% to 3,140.63
  • SENSEX decreased 746.22 points or -1.50% to 48,878.54
  • Nifty50 decreased 218.45 points or -1.50% to 14,371.90

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.00408 or -0.53% to 0.77207
  • NZDUSD decreased 0.00364 or -0.50% to 0.71807
  • USDJPY increased 0.26 or 0.25% to 103.78
  • USDCNY increased 0.02852 or 0.44% to 6.49361

Precious Metals:

  • Gold decreased 15.42 USD/t oz. or -0.82% to 1,854.49
  • Silver decreased 0.48 USD/t. oz or -1.83% to 25.470

Some economic news from last night:

Japan:

CPI, n.s.a (MoM) (Dec) increased from -0.5% to -0.3%

National Core CPI (YoY) (Dec) decreased from -0.9% to -1.0%

National CPI (YoY) (Dec) decreased from -0.9% to -1.2%

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