Asia report: Markets mixed as Chinese inflation creeps up
Markets in Asia finished in a mixed state on Thursday, as investors watched Britain delay its proposed exit from the European Union yet again, this time to the end of October.
AUD/USD
$0.6423
19:16 18/04/24
GBP/NZD
NZD2.1068
19:15 18/04/24
Hang Seng
16,385.87
10:20 18/04/24
Nikkei 225
38,079.70
09:44 18/04/24
USD/JPY
¥154.6350
19:16 18/04/24
In Japan, the Nikkei 225 was up 0.11% at 21,711.38, as the yen weakened 0.13% against the dollar to last trade at JPY 111.15.
Of the major components of the benchmark index, automation specialist Fanuc was down 0.28%, fashion group Fast Retailing added 0.51%, and technology conglomerate SoftBank Group was off 0.41%.
The broader Topix index was 0.07% weaker to close the day at 1,606.52 in Tokyo.
On the mainland, the Shanghai Composite was 1.6% lower at 3,189.96, and the smaller, technology-heavy Shenzhen Composite was down 2.19% at 1,740.37.
Fresh data out of China showed a 2.3% rise year-on-year in the country’s consumer price index for March, which was the most rapid rise in prices since October.
The nation’s producer price inflation was 0.4% higher year-on-year, which was the first rise in that figure for nine months.
Commonwealth Bank of Australia’s China economist Kevin Xie said they were still picking CPI would be 2.1% for the year.
“[However], we acknowledge upside risks to consumer inflation because pork inflation could jump further because of a shortage of pigs,” he noted.
South Korea’s Kospi was flat, closing at 2,224.44, while the Hang Seng Index in Hong Kong was off 0.93% at 29,839.45.
Internet-focussed technology giant Tencent was ahead 0.67% in the special administrative region, paring back some of its earlier gains after it breached the HKD 400 per share price point for the first time in 10 months.
Focus was firmly set on Europe early in the Asian day, as the UK and the rest of the EU came to an agreement on an extension to the already-extended Brexit due date.
The country would now leave the European Union on 31 October, or sooner if Theresa May’s withdrawal agreement was passed by parliament before then.
An emergency summit was convened late into the night, ahead of the previous extension deadline of Friday, when the UK would have fallen out of the EU without a deal.
Oil prices were lower as the region went to bed, with Brent crude last down 0.72% at $71.22 per barrel, and West Texas Intermediate losing 0.89% to $64.04.
Australia’s S&P/ASX 200 was 0.4% weaker at 6,198.70, after prime minister Scott Morrison confirmed the date for the next federal election as 18 May.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.6% at 9,766.60, snapping a six-day losing streak.
The retirement property sector was bouncing back after several sessions of declines, amid fears for the country’s residential sector in general.
Summerset was up 3.3%, with peers Metlifecare up 2.7% and Ryman Healthcare eking out gains of 0.1%.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.19% at AUD 1.3971, and the Kiwi retreating 0.18% to NZD 1.4808.