It was a quiet day of economic reporting. The only release of note was South Korea’s December CPI report, which showed a 0.2% m/m increase and an unchanged 5.0% yr/yr rate that helped the peak inflation narrative.
China, meanwhile, will be releasing its official Manufacturing PMI and Non-Manufacturing PMI reports after the U.S. market closes today and both are expected to remain in contraction territory (i.e. sub-50). Those reports will keep the spotlight on China to begin the new year, as will China’s COVID case surge, which is stoking concerns about new variants being transmitted across the globe.
The Bank of Japan carried out an unscheduled bond buying operation for the third straight day, this time focusing a JPY300 bln effort on 10-25 yr JGBs. USD/JPY -0.9% to 131.83.
South Korea’s December CPI +0.2% m/m (expected +0.1%; last -0.1%) and +5.0% yr/yr (expected +5.0%; last +5.0%)