Asia report: Markets mostly higher as China inflation comes in cool

(Sharecast News) - Asia-Pacific markets traded mostly higher on Wednesday as investors assessed weaker-than-expected US retail sales data and fresh inflation figures from China, while Japan remained closed for a public holiday.

"Asian markets continued their advance, printing records, while the dollar took a hit ahead of Wednesday's much-anticipated US jobs report," commented Patrick Munnelly, market strategy partner at TickMill.

"Sluggish retail sales strengthened expectations that the Federal Reserve might trim interest rates later this year."

Overnight on Wall Street, sentiment was mixed.

The S&P 500 fell 0.33% and the Nasdaq Composite slipped 0.59% as artificial intelligence concerns weighed on technology stocks.

In contrast, the Dow Jones Industrial Average rose 0.1% to a record close of 50,188.14, after notching its third consecutive intraday high and extending gains following its first-ever move above the 50,000 mark last week.

Munnelly noted that "the S&P 500 dipped 0.3% Tuesday due to losses in big-name tech stocks but stayed near last month's peak," adding that "investor sentiment remains cautious amid concerns over hefty AI investments by tech giants."

US data showed December retail sales were flat, missing economists' expectations for a 0.4% monthly increase.

"December sales, including advanced, ex-autos, and ex-autos and gas, were flat month-on-month, missing the 0.4% median estimates," Munnelly said, while "the control group fell 0.1% month-on-month against a 0.4% expected gain."

Regional markets close broadly higher

In mainland China, the Shanghai Composite edged up 0.09% to 4,131.98, while the Shenzhen Component fell 0.35% to 14,160.93.

Topscore Fashion Shoes rose 10.05%, Nantong Acetic Acid Chemical Co gained 10.04% and Guangdong Rongtai Industry advanced 10.04%.

Fresh data from the National Bureau of Statistics showed consumer prices rose 0.2% year on year in January, below the 0.4% increase forecast in a Reuters poll, underscoring continued deflationary pressure amid limited stimulus.

Hong Kong's Hang Seng Index added 0.31% to 27,266.38.

Techtronic Industries climbed 4.9%, Xiaomi gained 4.27% and Link Real Estate Investment Trust rose 3.83%.

In South Korea, the Kospi 100 advanced 1.03% to 6,039.29, led by a 22.98% surge in LG Electronics.

Meritz Financial rose 7.45% and S-Oil gained 6.76%.

Australia's S&P/ASX 200 climbed 1.66% to 9,014.80, with AGL Energy up 11.75%, James Hardie Industries rising 10.92% and Evolution Mining advancing 8.68%.

New Zealand's S&P/NZX 50 went against the regional grain, slipping 0.05% to 13,507.28.

Tourism Holdings fell 4.08%, Serko declined 3.61% and Vista Group International lost 3.55%.

Dollar weaker against regional G10 peers

In currency markets, the dollar was last down 0.78% on the yen to trade at JPY 153.18, as it fell 0.57% against the Aussie to AUD 1.4052 and eased 0.34% on the Kiwi to change hands at NZD 1.6490.

Munnelly observed that "the dollar weakened against all major currencies in the group-of-10," while "[US] Treasury futures gained momentum as 10-year bond yields dropped to their lowest in nearly a month during the US trading session".

"With Japan observing a holiday, there was no cash trading in Treasuries during Asian hours," he added.

Oil prices were higher, with Brent crude futures last up 1.38% on ICE at $69.75 per barrel, and the NYMEX quote for West Texas Intermediate gaining 1.52% to $64.93.

Reporting by Josh White for Sharecast.com.