Asian stocks close higher after data from China and US inflation, ahead of Biden-Xi meeting

Asian stock markets closed higher this Wednesday, 15th, after activity data exceeded forecasts in China and also in the wake of strong gains in Western markets on Tuesday, 14th, when investors reflected the slowdown in consumer inflation (CPI ) in the United States.

There is great expectation for the meeting between Chinese presidents, Xi Jinping, and North American presidents, Joe Biden, scheduled for this Wednesday.

According to the Chinese National Bureau of Statistics (NBS), industrial production in the country rose 4.6% year-on-year in October, while retail sales increased 7.6%. Both readings came in better than analyst consensus.

Also this Wednesday, the People’s Bank of China (PBoC) maintained the interest on the 1-year medium-term loan line (MLF) at 2.5%. With the operation, the monetary authority injected 1.45 trillion yuan into the system.

“This injection will help alleviate liquidity concerns in a context of additional issuance of government bonds to support fiscal stimulus, notably through infrastructure spending”, assesses Commerzbank.

In this context, the Shanghai Stock Exchange index rose 0.55%, to 3,072.83 points, while the less comprehensive Shenzhen index rose 0.68%, to 1,934.75 points. In Hong Kong, the Hang Seng gained 3.92%, at 18,079.00 points.

The market is also awaiting Biden and Xi Jinping’s bilateral meeting on the sidelines of the Asia-Pacific Economic Cooperation summit in San Francisco. According to the White House, the meeting is scheduled for 4 pm (Brasília time).

Among other Asian markets, Tokyo’s Nikkei index gained 2.52%, to 33,519.70 points. In Seoul, the Kospi appreciated 2.20%, to 2,486.67 points. Taiex, from Taiwan, registered an increase of 1.26%, to 17,128.78 points.

On Tuesday, the US CPI rose 3.2% year-on-year in October, markedly below the 3.7% increase in September. The indicator consolidated the bet that the Federal Reserve’s (Fed, the North American central bank’s) monetary tightening cycle has come to an end, which has increased appetite for risk around the world and also echoed in Asia.

Oceania

In Oceania, the S&P/ASX 200 index, in Sydney, closed up 1.42%, at 7,105.90 points.