EQUITIES: Asian Equities Mixed To Kick The Year, Japan Remains Out

Analysts expect China’s November CPI to grow moderately, ranging from 0.15% to 0.6% y/y, compared to October’s 0.3%, Securities Daily reported. Declining food prices amid better weather and supply, falling prices of crude oil, industrial raw materials, metals and other commodities will weigh down CPI, the newspaper said citing analysts. Sources predicted PPI in November would be between -2.09% to -3.0% y/y, compared to October’s -2.9%, given low ex-factory and raw material purchase prices sub-indices in the recent manufacturing PMI, and affected by weak global oil demand, the daily said, citing analysts. China is set to release the data next Monday.

The People’s Bank of China will keep monetary policy supportive in 2025, while increasing countercyclical regulation, maintaining reasonable liquidity and reducing financing costs for enterprises and residents, Governor Pan Gongsheng said at a recent forum. The central bank will use structural monetary policy tools, strengthen support for scientific and technological innovation, green and consumer finance, and promote the stable development of the real estate and capital market, Pan added. Since late September, authorities have implemented incremental policies aimed at reaching this year's expected economic goals.

The People's Bank of China will align with other central banks to include residential demand deposits and prepaid funds received by non-bank payment institutions into M1 calculations, starting in 2025, Xinhua News Agency reported. Given recent payment method developments, individuals can now use personal demand deposits for payment and transfer at any time without withdrawing cash. These deposits now have the same liquidity as corporate demand deposits and should therefore be included in M1, Xinhua reported, citing PBOC officials.