South Korean Inflation, RBA Interest Rates, Oil

SINGAPORE – Asia-Pacific stocks fell Tuesday as inflation in South Korea rose and investors look ahead to the Reserve Bank of Australia’s interest rate decision.

Japan’s Nikkei 225 fell 0.87% and the Topix index lost nearly 1%.

In South Korea, the Kospi lost 0.39% and the Kosdaq 0.21%.

Consumer prices in South Korea rose 6.3% in July from the same period in 2021, official data showed on Tuesday. That’s in line with expectations and the fastest price hike since November 1998, Reuters reported.

The Bank of Korea raised interest rates by 50 basis points in July.

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The Australian S&P/ASX 200 was down 0.39%.

The Reserve Bank of Australia is expected to rise 50 basis points after official data showed Australian prices rose 6.1% in the second quarter compared to a year ago.

MSCI’s broadest index of Asia-Pacific stocks outside of Japan fell 0.28%.

In the US, the Dow Jones Industrial Average lost 46.73 points, or 0.14%, to 32,798.40 overnight.

The S&P 500 lost 0.28% to 4,118.63 and the Nasdaq Composite lost 0.18%, closing at 12,368.98.

currencies

The US dollar index, which tracks the greenback against a basket of peers, stood at 105,402.

The Japanese yen traded at 131.50 per dollar and continued its strengthening trend. The Australian dollar stood at $0.7026 after breaking above $0.7.

“The AUD is higher as the USD fell overnight amid weaker US data,” ANZ Research said in a note dated Tuesday.

Oil futures fell Tuesday. US crude lost 0.22% to $93.68 a barrel after falling 4.8% in the previous session, and Brent crude lost 0.25% to $99.78 a barrel. The international benchmark was 3.79% lower.

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