Asia: Stocks mixed on Japanese data, Chinese stimulus speculation

Asian stocks were mixed following the release of a raft of Japanese data.

Nikkei’s 225 index ended up 0.06% after a further slowdown in Japanese inflation fuelled speculation the Bank of Japan will introduce further stimulus measures to achieve its price target.

The consumer price index (CPI) rose 2.2% in January from the year-ago period compared to a 2.5% increase in December and a forecast for a rise of 2.3%.

Japan’s jobless rate rose unexpectedly in January to 3.6% from the prior month’s 3.4%.

Household spending in Japan fell 5.1% in January after a 3.4% drop the previous month. Analysts had predicted a 4.1% decrease.

Industrial production in the nation edged down 2% in January, better than the 3.1% fall predicted and after a 0.1% rise in December.

Retail trade was down 2% in January following a 0.1% gain a month earlier. It compared to expectations for a 1.2% decline.
Japanese housing starts slid 13% in January, compared to estimates for a 11.6% drop and the previous month’s 14.7% fall.
In China, Hong Kong’s Hang Seng was down 0.32% while the Shanghai composite rose 0.36%.

Chinese media reported that easing measures for small banks in Zhejiang province may be enacted. Authorities are expected to more stimulus measures to support the slowing economy, prompted by reports on further reductions in city banks' reserve requirement ratios (RRR).

Premier Li Keqiang called for more active fiscal policy ahead of the start of the annual National People’s Congress meeting next week when the government sets its growth target for the year.

Among stocks, China State Construction Engineering Corp. and Power Construction Corp. of China rallied.

Nexon Co. rallied in Tokyo after the online game distributor said it’ll buy back 10 billion yen in shares.