Asia markets fall as Japan’s core inflation marks highest in over 40 years

Taiwan Semiconductor Manufacturing Co. is in talks with suppliers to build its first European chip plant in Dresden, Germany, Financial Times reported, citing people familiar with the matter.

The company will reportedly send senior executives to Germany to discuss government support levels and local supply chain. The plant will aim to focus on 22nm and 29nm chip technologies, the report said.

Shares of the firm listed in Taiwan traded 2.8% lower in Asia’s trade on Friday.

— Jihye Lee

Taiwan Semiconductor Manufacturing Co. is in talks with suppliers to build its first European chip plant in Dresden, Germany, Financial Times reported, citing people familiar with the matter.

The company will reportedly send senior executives to Germany to discuss government support levels and local supply chain. The plant will aim to focus on 22nm and 29nm chip technologies, the report said.

Shares of the firm listed in Taiwan traded 2.8% lower in Asia’s trade on Friday.

— Jihye Lee

U.S. Secretary of State Antony Blinken spoke with his Chinese counterpart Wang Yi and discussed Russia’s war on Ukraine, the situation on Covid and U.S.-China bilateral relations.

“The Secretary discussed the need to maintain open lines of communication and responsibly manage the U.S.-PRC relationship,” U.S. Spokesperson Ned Price said in a statement.

“It is critically important to maintain open channels of communication,” Blinken said in a post on Twitter.

A readout of the meeting from the Chinese foreign ministry added that the two also discussed issues around Taiwan.

—Lee Ying Shan

Singapore’s core inflation print rose 5.1% in November on an annualized basis, remaining unchanged from October’s figure.

The reading was higher than estimates in a Reuters poll forecasting a 5% increase, driven by moderate increases in the services and electricity costs, according to the Ministry of Trade and Industry.

Inflation is expected to stay elevated in the first half of 2023 before “slowing more discernibly” the ministry said.

In Malaysia, its core CPI for November also remained unchanged at 4% compared to a year ago, beating expectations of 3.9%.

— Lee Ying Shan

The Bank of Japan had hinted at an upcoming policy shift during its October monetary policy meeting, minutes from its meeting on October 27 and 28 showed.

One member noted that it was “important to continue to examine how future exit strategies would affect the market and whether market participants would be well prepared for them,” the statement said.

While members of the central bank’s policy board members highlighted the need to its long-held dovish stance, while noting the need for “paying attention to the side effects of monetary easing,” the minutes showed.

“It was necessary to examine the impact of high prices on household behavior and wages humbly,” it said.

— Jihye Lee