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Inflation Having a 'Domino Effect' Across the Markets

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Good evening, I'm Saijal Patel and you're watching "Asia Market Daily".

Commodity prices rallied today, with copper surging to a record high, thanks to tamer than expected inflation data out of China.

However, analysts say the latest consumer and producer prices won't change the fact that more aggressive tightening is needed from the PBOC.

(SOT) Andy Mantel, founder and CEO, Pacific Sun Investment Management:
"I do think the CPI, the PPI together, you're not going to have a change of what China will be doing in the next six months which will be raising interest rates probably two to three times, also reserve requirements, they'll be raising those probably three or four times, 50 basis points each time. So you do see increased tightening in China market."

Andy Mantel, founder and CEO of Pacific Sun Investment Management says it wasn't such a big surprise to see the Statistics Bureau lower the weighting of food in its calculation of CPI, by 2.21 percentage points.

(SOT) Andy Mantel, founder and CEO, Pacific Sun Investment Management:
"China does come out with news like this when people are not expecting it. You know, one of the interest rate hikes was done on Christmas day, currency moves in the past have been done at the year end or at holidays as well and as far as changing the CPI indices, mentioning it just today, it's quite normal in terms of how China does that."

Meanwhile, concerns about the global inflation outlook are continuing to impact regional sharemarkets.

Mohammed Apabhai of Citi says divergence between Asian and U.S. stockmarkets "is almost unprecedented" - with many emerging markets falling "like dominos".

(SOT) Mohammed Apabhai, head of Asia Pacific Trading Strategies, Citi:
"I think markets are on inflation alert right across the world. There is the trend that the bears are attacking market after market. They are falling like dominos. The question is who is going to be next. And our opinion, one of the reasons why we are very concerned with markets still in Asia is the concern that the U.S. may be the next domino to fall."

And of course we'll be closely watching U.S. January PPI numbers due out on Wednesday, and the CPI data, which will be released on Thursday.

That's the latest "Asia Market Daily". I'm Saijal Patel from CNBC.

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