Sponsor Forex Brokers Asia-Pacific Market Recap: Stocks Lower, Bonds Higher After Japanese CPI

Market Updates | Written by CEP News | Jul 25 08 10:51 GMT |

(CEP News) - A sharp but mostly below-forecast increase in consumer prices for Japan had Asia-Pacific fixed income markets higher and equities closing lower with yields on Australian 10-year bonds down 14.0 bps to 6.26% and Japanese 10-year government bonds down 8.0 bps to 1.58%. According to data released by the Japanese Ministry of Internal Affairs and Communications on Friday, inflation in Japan rose slightly faster than expected in June, but nevertheless sharply from the previous month, with headline prices in Tokyo growing 1.6% year-over-year, compared to June's 1.5% gain however below forecasts for a 1.8% increase. Excluding fresh foods, CPI was up 1.6%, in line with expectations and higher than the previous month's 1.3% gain. Tokyo CPI excluding fresh foods and energy advanced 0.3% against calls for a 0.4% annual growth rate and the 0.3% rise seen in June. National Japanese CPI rose a sharp 2.0% year-over-year in June, just higher than estimates for a 1.9% increase and above May's 1.3% gain. CPI excluding fresh food rose 1.9% year-over-year in May, in line with estimates and higher than the previous month's 1.5% increase. Consumer prices excluding fresh foods and energy fell 0.1% year-over-year compared to forecasts for no growth and May's 0.1% annual decline. Sydney's S&P ASX 200 closed down 173.60 points to 4970.5. The Japanese Nikkei closed down 268.55 points to 13334.76 and the Hang Seng down 347.01 points to 22740.71. Yields on three-year Australian bonds were down 0.7 bps to 7.35 and the Australian 90-day September 08 contract was flat at 92.26. The Euroyen September 08 contract was up 0.5 ticks to 99.15. The Australian dollar was down 0.03 cents to 0.9583 against the USD and down 0.19 cents to 0.9709 against the Canadian dollar. Against the yen, the U.S. dollar was down 0.09 points to 107.24 and the Canadian dollar was up 0.07 points to 105.84. The euro was up 0.70 cents to 1.5748 USD. All data taken at 6:48 a.m. EDT. Generated by CEP Newswires, edited by Nancy Girgis, ngirgis@economicnews.caThis email address is being protected from spam bots, you need Javascript enabled to view it CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News. A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer.