Live updates, Tokyo inflation, Caixin PMI and RBA decision on deck

Australia’s central bank held its benchmark policy rate at 4.35% in its December meeting, in line with expectations from economists polled by Reuters.

In its release, the Reserve Bank of Australia explained that the “limited information” on the domestic economy that has come in since its November meeting has been in line with expectations.

The bank noted that October’s CPI reading showed inflation has moderated, but did not provide much more information on services inflation.

The RBA also highlighted that while there have been encouraging signs on goods inflation abroad, services price inflation has remained persistent, and the same could occur in Australia.

— Lim Hui Jie

The Caixin China services purchasing managers’ index for November climbed to its highest in three months, diverging from China’s official PMI reading that showed a contraction.

This private survey reading came in at 51.5 in November, according to a release dated Dec. 5, rising from 50.4 in October and 50.2 in September.

China’s official non-manufacturing PMI services sub-index for November released last week came in at 49.3, showing a contraction for the first time since December 2022 .

— Clement Tan

Japan’s business activity contracted for the first time this year, according to the au Jibun Bank.

The country’s composite purchasing managers’ index reading for November came in at 49.6, down from the flash figure of 50.0 reported earlier last month. PMI below 50 indicates contraction, while above 50 indicates expansion.

Separately, Japan’s service sector activity softened to 50.8 in November, indicating the weakest growth since November 2022.

While services activity continued to grow, the growth rate was insufficient to offset a faster drop in manufacturing, au Jibun Bank said.

— Lim Hui Jie

The headline inflation rate in Japan’s capital city of Tokyo rose by 2.6% in November, its slowest rise since July 2022.

This comes after the capital city’s inflation rate spiked to 3.3% in October, after being largely on a downward trend from its peak in January. Tokyo’s inflation readings are largely considered to be a leading indicator of nationwide trends.

Core inflation, which strips out prices of fresh food, came in at 2.3%, lower than Reuters expectations of 2.4% and also down from 2.7% in October.

The so called “core-core” inflation rate, which strips out both fresh food and fuel prices and watched by the Bank of Japan fell slightly to 3.6%, down from 3.8% in October.

— Lim Hui Jie

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— Amala Balakrishner

South Korea’s inflation rate slowed to 3.3% for November, coming in below expectations and marking its first decline in three months of acceleration.

The November reading was forecast by a Reuters poll to moderate to 3.7%, down from 3.8% in October.

On a month on month basis, the consumer price index fell 0.6%, a steeper slide than the 0.15% expected by the Reuters poll.

— Lim Hui Jie

Three stocks — one U.S.-listed and two U.K.-listed — have risen by double-digit percentages this year. But investors shouldn’t fear missing…