Asian shares mostly fall as investors watch for inflation

TOKYO (AP) — Asian shares were mostly lower Friday in muted trading, as investors kept an eye on inflation and awaited the outcome of a Communist Party congress in China.

Benchmarks fell in most regional markets but rose in Mumbai.

China's ruling party congress is expected to wrap up Saturday with an endorsement of leader Xi Jinping remaining in office indefinitely. The meeting, held every five years, sets the national agenda for the next five and can send signals of possible changes in policy direction. One change apparently absent from the agenda is an end to severe “zero COVID" rules that look likely to continue disrupting life and business activity for months to come.

In other developments, Japan's core consumer prices rose 3.0% in September from a year earlier, according to government data released Friday. That was the highest increase in eight years. It would also have been the highest in more than 30 years if the impact of introducing and raising the consumption tax was excluded.

The Bank of Japan has kept an ultra-low interest rate policy, while the Federal Reserve and other central banks have been raising rates to counter surging prices. Until recently, the Japanese central bank had devoted its efforts to fending off deflation, or the continued downward spiraling of prices.

In currency trading, the U.S. dollar rose to 150.38 Japanese yen from 150.09 yen, adding to pressure on the BOJ to tweak its monetary policy since a weaker yen amplified rising prices due to the higher costs for imports. The euro was little changed at 97.76 cents, inching down from 97.87 cents.

Japan's benchmark Nikkei 225 declined 0.4% in afternoon trading to 26,892.67. Australia's S&P/ASX 200 shed 0.8% to 6,676.80. South Korea's Kospi edged down 0.3% to 2,212.61. Hong Kong's Hang Seng fell 0.8% to 16,157.32, while the Shanghai...