Asian stocks rebound on the lower US bond yield, China stimulus plans

• Asian equities gain momentum on the lower US Treasury bond yield.
• China’s 1 trillion yuan bond issuance boosts Chinese stock markets from 11-month lows.
• Japan’s National Consumer Price Index (CPI) for October arrived at 3.3% YoY vs. 2.8% prior.

Most Asian stock markets trade in positive territory on Friday. The lower US Treasury bond yield lifts the regional stocks ahead of the US Core Personal Consumption Expenditures Price Index (PCE) data, due later on Friday. Meanwhile, the headlines surrounding the escalating geopolitical tensions in the Middle East might exert pressure on the stock markets.

At press time, China’s Shanghai gains 0.35% to 2,998, the Shenzhen Component Index climbs 1.11% to 9,672, Hong Kong’s Hang Sang soars 0.99% to 17,213, South Korea’s Kospi is up 0.02%, and Japan’s Nikkei rises 1.14%.

Chinese equities rebound from multi-month lows, supported by a 1 trillion yuan bond issuance to spur local economic growth by the Chinese government.

In Japan, Inflation rose faster than anticipated in October and likely prompted the Bank of Japan (BoJ) to take a more hawkish stance at its upcoming BoJ meeting next week.

Japan’s National Consumer Price Index (CPI) for October arrived at 3.3% YoY from the previous reading of 2.8%, data released by the Japan Statistics Bureau on early Friday. Additionally, the National CPI ex Fresh Food surges to 2.7% YoY in October from 2.5% in September.

On the Aussie front, Australia’s Producer Price Index (PPI) eased to 3.8% YoY in the third quarter (Q3) from the 3.9% seen in the previous reading. On a quarterly basis, the figure arrived at 1.8% from 0.5% in the previous reading.

Investors will keep an eye on September’s US Core Personal Consumption Expenditures Price Index (PCE) on Friday. The monthly and annual Core figures are estimated to grow 0.3% and 3.7%, respectively. The attention will turn to the Federal Open Market Committee (FOMC) meeting next week and this event could trigger the volatility in the market.