Asia report: Shares mixed on US inflation, NKorea missile test

Asian markets closed mixed on Monday as a surge in US inflation to a record high and new North Korea missile tests rattled investors.

The spike in US inflation increased worries that the Federal Reserve would be forced to tighten monetary policy sooner than later. Reports that US President Joe Biden was also considering a fresh trade probe into China added to the downbeat mood.

Shares in Hong Kong were lower, with tech firms again suffering on lingering concerns about China’s crackdown on the sector. China’s Shanghai Composite index was higher as was Japan’s Nikkei and Australia’s ASX 200.

Traders were also eyeing the Korean peninsula after the North test-fired a new “long-range cruise missile” over the weekend, calling it a “strategic weapon of great significance”.

“Grabbing attention … is a Financial Times story stating that China's government intends to break up Alipay, owned by Ant Group," said OANDA analyst Jeffrey Halley.

Shares in Alibaba Group, listed in Hong Kong, were lower and hit the Hang Seng index as a result.

Australian markets bucked the trend on the back of an attempted takeover of Sydney Airport. After several rejected bids, Sydney Airport accepted an AUD23.6bn takeover bid from investment group Sydney Aviation Alliance consortium.