Asia Pacific Markets Trade Mixed Following the Fall of US PCE Index

On Monday morning (25 Dec, 9:30 AM, GMT+7, Bangkok time), Asia Pacific major indices traded on a weak side as only two major stock markets were open on Christmas day. The movement on Monday came after the report of U.S. prices fell in November for the first time in more than three and a half years, boosting expectations from capital markets for an interest rate cut by the Federal Reserve as soon as March next year.

The personal consumption expenditures (PCE) price index, Fed’s favourite gauge to measure inflation, fell 0.1% in November, bringing the annual rise in inflation further below 3%. It was the first monthly decline since April 2020. 

In November, food prices dropped 0.1% and energy prices fell 2.7%, according to the Commerce Department’s Bureau of Economic Analysis on Friday. On an annualized basis, PCE price index rose 2.6% after a 2.9% rise in October. It was below 2.8% YoY increase polled by Reuters. 


Japan’s NIKKEI rose by 0.35% to 33,284.34, and Shanghai’s SSEC fell by 0.13% to 2,910.99.

Meanwhile, the US stocks market was mixed on Friday as the Dow Jones Industrial Average (DJIA) declined by 0.05% to 37,385.97. NASDAQ rose by 0.19% to 14,992.97, and S&P 500 gained 0.17% to 4,754.63. VIX decreased by 4.54% to 13.03.


As for commodities, oil prices settled lower as Angola was anticipated to raise its oil output following the exit from OPEC. However, the US inflation data and the attack in the Red Sea from the Houthi could impact the supply costs.

On Friday, Brent fell by 0.4% to $79.07 per barrel, and the West Texas Intermediate (WTI) slid by 0.5% to $73.56 a barrel.