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A Sydney ferry passes the Opera House and skyline of the central business district area on May 12, 2020 in Sydney, Australia.
James D. Morgan | Getty Images
Asia-Pacific markets open mixed on Thursday after the U.S.' October consumer price index reading fueled expectations for the Fed to cuts rates again in December.
The CPI came in line with expectations, accelerating slightly to an annual inflation rate of 2.6%. Core CPI, which straps out volatile food and energy prices, gained 3.3% last month, also matching expectations.
Soon, investors in Asia will be digest the monthly employment data from Australia, including the number of new jobs added, participation rate and unemployment rate.
Japan's Nikkei 225 gained 0.74% while the Topix added 0.58%.
Japanese yen appreciated slightly against the U.S. dollar to 155.36 on Thursday, after falling below the 155 benchmark overnight, hovering near the lowest level in over four months.
Futures for Hong Kong's Hang Seng index stood at 19,612, set to extend a multi-day losing streak that saw the index close at 19,823.45 Wednesday.
Australia's S&P/ASX 200 started the day up 0.50%.
In the U.S., the S&P 500 and Dow Jones Industrial Average closed Wednesday near the flatline following the release of the inflation report.
The S&P 500 inched higher by 0.02% to close at 5,985.38, while the 30-stock Dow ticked up 47.21 points, or 0.11%, to 43,958.19. The Nasdaq Composite ended the day with a 0.26% decline and closed at 19,230.74.
The inflation data puts the Federal Reserve on course to lower interest rates next month, with markets pricing in a 80.8% likelihood of a quarter-percentage-point cut, according to the CME FedWatch Tool.
— CNBC's Brian Evans and Hakyung Kim contributed to this report.
Market raises expectations for December rate cut following inflation report
The October inflation reading released Wednesday raised market expectations that the Federal Reserve will be cutting benchmark interest rates again in December.
Following the October consumer price index release, which showed the 12-month inflation rate at 2.6%, meeting forecasts, traders upped odds for a quarter percentage point reduction to about 82%, according to the CME Group's FedWatch gauge. A day earlier, the market-implied probability was at just 59%.
Traders then expect the Fed to skip January and then cut again in March.
—Jeff Cox
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— Ganesh Rao
English (US)