China’s consumer-price inflation showed surprise easing in October, while wholesale prices deflated further, according to data released Friday. The consumer price index rose 1.7% from a year earlier, though separate surveys from Dow Jones Newswires and Reuters had tipped the CPI to rise 1.9%, just as it did in September. The producer price index fell 2.8% from the year-earlier period, slightly more than a 2.7% drop projected in the Dow Jones Newswires and Reuters surveys, but slowing from the previous month’s 3.6% tumble. Stock indexes in Hong Kong and Shanghai came off their lows immediately after the data, which printed about a minute after the market opened. The Shanghai Composite Index turned fractionally positive after an opening loss, while the Hang Seng Index trimmed its 0.7% opening drop to a more modest 0.4% loss after the numbers. The relatively benign price data offer the central bank more room to ease policy if needed.
Via – MarketWatch