Asian stocks closed mostly lower on Thursday (9), after weaker-than-expected Chinese inflation data and as investors ponder the chances of more aggressive US interest rate hikes.
In mainland China, the Shanghai Composite index retreated 0.22%, to 3,276.09 points, and the less comprehensive Shenzhen Composite had a marginal loss of 0.07%, to 2,113.33 points.
Official data showed that China’s annual consumer inflation rate (CPI) slowed to 1% in February, from 2.1% in January. Last month’s result was the lowest in a year and was well below the market forecast of 1.7%.
For analysts, the Chinese CPI casts doubt on the recovery of household demand, but also opens space for monetary easing measures.
“The surprise downside from inflation may slightly increase the likelihood of a moderate (interest) rate cut in the coming months,” Nomura said in a note to clients.
Elsewhere in Asia, Hang Seng fell 0.63% in Hong Kong, at 19,925.74 points, while South Korea’s Kospi lost 0.53% in Seoul, at 2,419.09 points, and Taiex gave way 0.30% in Taiwan, to 15770.66 points.
The exception was Japan’s Nikkei, which rose 0.63% in Tokyo to 28,623.15 points, hitting the highest since Aug. 26 last year, as recent weakness in the yen against the dollar favored stocks in electronics and finance.
The following morning, the Bank of Japan (BoJ) announces a monetary policy decision, the last under the presidency of Haruhiko Kuroda.
Most economists do not foresee changes, but there are those who warn of the risk of Kuroda surprising and eliminating, at least, the so-called “control of the yield curve”, before being replaced by Kazuo Ueda, in April.
Investors in Asia are also keeping an eye on the trajectory of interest rates in the US, which tend to rise at a stronger pace than imagined this year, as signaled by the president of the Federal Reserve (Fed, the American central bank), Jerome Powell, in the last two days.
On Wednesday, however, Powell said the Fed’s rate decision for this month has yet to be made and will depend on yet-to-be-released economic data.
In Oceania, the Australian stock exchange was slightly in the blue this Thursday, as the good performance of financial and technology stocks offset losses in the mining sector. The S&P/ASX 200 rose slightly by 0.05% in Sydney to 7,311.10 points.
Source: CNN Brasil
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