Asian markets higher as Japan inflation nears 8-year high; China keeps benchmark lending rate unchanged

Asian markets higher as Japan inflation nears 8-year high; China keeps benchmark lending rate unchanged

Hong Kong tech, casino stocks boost broader index

RBA says argument for slower rate hikes is strengthening

Board members of the Reserve Bank of Australia (RBA) “see increasing evidence of a slowdown in the pace of rate hikes”, according to the minutes of the September 6 meeting, which raised rates by 50 basis points to 2.25%.

“The Committee expects to raise interest rates further in the coming months, but it is not on a pre-set path given the uncertainty over the outlook for inflation and growth,” it said in minutes of the meeting released on Tuesday.

It added that medium-term inflation expectations remained “well anchored”.

The RBA said future rate hikes would be guided by data and the outlook for inflation and the labor market.

— Abigail Wu

CNBC Pro: Goldman Sachs says copper demand is about to surge.Here are the stocks it expects to benefit

Goldman Sachs said copper shortages could be on the horizon, with demand surging as the push toward net zero — in which case some metals stocks could shine.

CNBC Pro subscribers can read more here.

— Tan Weizhen

China keeps key lending rates unchanged

The People’s Bank of China left its one-year and five-year loan prime rates (LPRs) unchanged, in line with forecasts in a Reuters poll.

The prime rate for one-year loans remained at 3.65%, and the five-year rate closely related to home mortgages stood at 4.3%. China cut both rates last month.

— Abigail Wu

CNBC Pro: Fund manager says bear market will get ‘nasty’

Fund manager Cole Smead believes stocks are still in the early stages of a bear market, warning that this will not be a “garden variety.”

However, he did not lose sleep because of it. The reasons are as follows:

Professional subscribers can read more here.

— Xavier Ong

Japan’s core inflation accelerates in August

Japan’s core consumer prices rose 2.8% in August from a year earlier, government data showed.

It was the fastest growth in nearly eight years and marked the fifth month in a row that inflation has surpassed the central bank’s 2% target.

Analysts polled by Reuters expected a 2.7% increase in July, with consumer prices rising 2.4%.

The yen strengthened slightly against the dollar to 142.96.

— Abigail Wu

Stocks move higher in a volatile session on Monday

Stocks were volatile on Monday, but ended the session higher as an important week for the Fed begins.

The Dow Jones Industrial Average closed up 197.26 points, or 0.64%, at 31,019.68. The S&P 500 rose 0.69% to 3,899.89 and the Nasdaq Composite added 0.76% to 11,535.02.

— Samantha Subin

The 10-year Treasury yield jumped above 3.5%, the highest level since 2011

The yield on the benchmark 10-year Treasury note rose to 3.5 percent on Monday morning, hitting its highest level since 2011, as investors braced for longer-term interest rates as the Fed battles inflation.

U.S. Treasury yields rose to highs last week after the August Consumer Price Index report showed a surprise rise in prices. However, the 10-year bond was largely held near the June high of 3.495% before moving higher again on Monday.

The 10-year Treasury yield was at 3.506%, up nearly 6 basis points. Yield moves in the opposite direction of price, with one basis point equal to 0.01%.

— Jesse Pound

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