Asia markets rebound as China inflation beats forecasts

November 10, 2025 (MLN): Asia markets opened higher on Monday, rebounding from last week’s declines driven by concerns over inflated artificial intelligence (AI) valuations.

Investors across the region turned their focus to China’s latest inflation figures and signals from the Bank of Japan (BOJ) hinting at possible monetary policy tightening.

China’s October inflation data came in stronger than expected, offering signs of mild recovery in consumer demand. Headline consumer prices rose 0.2% year-on-year, beating economists’ forecasts of zero growth, according to Reuters.

Meanwhile, producer prices fell 2.1%, a smaller drop than the anticipated 2.2% decline, indicating easing deflationary pressures in the industrial sector.

In South Korea, the Kospi surged 2.76%, led by gains in banking and insurance shares, while the Kosdaq added 0.62%. Japan’s Nikkei 225 rose 0.94%, and the broader Topix gained 0.24%, as sentiment improved following the release of the BOJ’s October meeting minutes.

The minutes suggested that Japan’s central bank is edging closer to a rate hike, noting that “conditions for taking a further step toward the normalization of the policy interest rate have almost been met.”

However, policymakers also highlighted the need to assess whether “underlying inflation has become sufficiently entrenched.” Meanwhile, 10-year Japanese government bond yields touched 1.69%, their highest level since October.

Elsewhere, Hong Kong’s Hang Seng Index advanced 0.71%, and China’s CSI 300 climbed 0.22%, as investors reacted positively to the inflation data. Australia’s S&P/ASX 200 also gained 0.61%, extending the regional recovery.

On Wall Street Friday, the Nasdaq Composite extended losses amid ongoing tech sector pressure, but the Dow Jones Industrial Average and S&P 500 managed slight gains.

Optimism grew after U.S. Senate Minority Leader Chuck Schumer proposed a new plan to Republicans aimed at ending the country’s record-breaking government shutdown.

Adding to the cautious sentiment, a University of Michigan survey showed U.S. consumer sentiment has fallen close to record lows, while a report from Challenger, Gray & Christmas revealed that October layoffs reached their highest level for the month in 22 years.

With China’s inflation data beating expectations and the BOJ signaling a potential policy shift, investors appear to be cautiously optimistic at the start of the week, awaiting further cues from global economic indicators and corporate earnings.

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