China Stocks Trade Lower amid Higher Pressure on Deflation

Stocks in Asia traded mixed on Monday after data showed persistent deflationary pressure from China that still suffers from weak domestic demand.


As of 9:40 BKK time on Monday, SSEC edged 0.78% lower, Hang Seng Index fell 1.63%. Meanwhile, Nikkei rose 1.72%, ASX 200 gained 0.07% and Kospi increased 0.07%.

Thailand’s SET Index is closed for holiday on Monday.


China reported a faster-than-expected decline in consumer prices for November. Inflation fell 0.50% year-on-year, more than a 0.1% drop expected by economists from Reuters poll. It was also the fastest drop since November 2020.

Meanwhile, the producer price index fell 3% YoY, compared with a 2.6% drop in October and 2.8% drop expected by economists. This marked the 14th straight month of decline.

Last Friday, the U.S. market closed higher with Dow Jones gained 0.36% to 36,247.87 points, S&P rose 0.41% to 4,604.37 points and Nasdaq increased 0.45% to 14,403.97 points. 

Oil prices made some recovery this morning as the international benchmark Brent crude rose 0.38% to $76.13 a barrel and the West Texas Intermediate gained 0.29% to $71.44 a barrel.