Asia report: Shares lower as investors mull Australia CPI rise

29th May 2024 07:42

(Sharecast News) - Asian markets were lower on Wednesday as investors digested higher-than-expected April inflation data from Australia.

The Australian consumer price index rose 3.6% year-on-year in April, bigger than forecasts of a 3.4% rise and above the 3.5% reported for March.

Australia's S&P/ASX 200 index closed 1.3% lower at 7665.6 in response to the news.

"Our house forecast is two more hikes unless the Reserve Bank of Australia is hoodwinked by the budget artificially supressing CPI with subsidies," said Rabobank global strategist Michael Every.

"Which, optimists will say, is the case: the market is only pricing around a 25% chance of a September rate hike despite inflation well over the 2-3% target, a stimulatory budget, and the global backdrop being inflationary again, not disinflationary."

In Japan the Nikkei 225 fell 0.77% to 38,556, while Hong Kong's Hang Seng index was 1.64% lower to 18,514, South Korea's Kospi slumped 1.67% to 2,677.

China's composite Shanghai Composite index bucked the trend with a small 0.04% rise to 3,110.02.

Reporting by Frank Prenesti for Sharecast.com