Shares largely lower, BOK interest rate decision; China MOF presser

SINGAPORE – Chinese shares led declines in Asia-Pacific markets on Friday after key Wall Street benchmarks fell overnight as investors digested a sticky US inflation report.

Mainland China’s CSI 300 blue chip index fell 2.77% to 3,887.17, ending the week 3.25% lower, as a stimulus-fueled rally continues to lose steam.

China’s Ministry of Finance will hold a press conference at 10 a.m. local time on Saturday. A new fiscal stimulus package is expected to be unveiled at the much-anticipated briefing session as Beijing tries to boost its economy. Saturday is a working day in China, but the markets are closed.

Investors in Asia also assessed an interest rate decision by the Bank of Korea, which saw the BOK cut its benchmark rate by 25 basis points to 3.25%, the first rate cut since 2020. The decision marks the end of a multi-year tightening cycle that saw rates in rose to a 15-year high in 2023.

The decision comes as inflation in South Korea eased to 1.6% in September, the lowest level since early 2021 and below the central bank’s average target of 2%.

Oil prices retreated after rising more than 3% on Thursday as households and car owners increased fuel consumption ahead of Hurricane Milton and concerns grew that conflict in the Middle East could increase risks to Iran’s oil sites to escalate.

Brent futures fell 0.35% to $79.11 a barrel, while U.S West Texas average crude fell 0.34% to $75.6 per barrel.

Japanese Nikkei 225 rose 0.57% to end at 39,605.8, helped by the financial and healthcare sectors. The broad Topix fell 0.24% to 2,706.2.

The blue chip of South Korea Kospi closed marginally lower at 2,596.91, while small-cap Kosdaq moved 0.59% lower to end at 770.87.

Australia S&P/ASX200 fell by 0.1% to 8,214.5.

Hong Kong markets were closed on Friday for a public holiday.

In the US, the S&P 500 lost 0.21% overnight to settle at 5,780.05, while the Dow Jones Industrial Average fell 0.14% to end at 42,454.12. The Nasdaq Composite fell 0.05% to end at 18,282.05.

The US consumer price index rose 0.2% month-on-month, bringing annual inflation growth to 2.4% from the previous year. Inflation figures exceeded expectations of a 0.1% monthly gain and a 2.3% annual increase, according to a Reuters poll.

While annual inflation was the lowest since February 2021, concerns were heightened that the Federal Reserve could slow the pace of future interest rate cuts.

— CNBC’s Samantha Subin and Hakyung Kim contributed to this report.