Asian stocks traded mixed today January 9, as Japan gave away much of its gains from the previous session while Chinese inflation data kept Hong Kong sentiment in check.
The trading hall of the Hong Kong Stock Exchange.
The U.S. dollar was trading below the ?105 mark, the level that helped propel the Nikkei Average -above 16,000 on Wednesday. The benchmark index gave up most of those gains Thursday, falling 1.6% to 15,870.37. The dollar was at ?104.86, steady with ?104.87 late Wednesday after spiking to ?105.12 intraday.
The main economic event in Asia on Thursday was Chinese inflation data for December. The consumer price index rose 2.5% on year, meeting expectations of 13 economists polled by The Wall Street Journal, and easing from a 3% gain in November.
Signs of a cooling economy weighed on Hong Kong?s Hang Seng Index, which lost 0.1%, though the Shanghai Composite managed to gain 0.4%, as the mainland Chinese market recovered from a series of declines over the first days of trading in the New Year.
The inflation figures came after some disappointing economic numbers from China earlier in the month that pointed to decelerating activity in both the services and manufacturing sectors.
The Australian dollar climbed as high as 89.12 U.S. cents after data showed that retail sales in November rose 0.7% from a month earlier, compared with a forecast 0.4%, with the gain marking the seventh consecutive monthly rise.
China is the only major economy left in the world that sets hard growth targets.
Also on Thursday, the number of Australian home-building permits fell for a second month in November, increasing concern over the strength of a rebound in housing construction. November approvals fell 1.5% from October, after declining 1.6% on-month in October, offsetting the positive retail news.
The Aussie pared much of its gains after the Chinese inflation data came out, trading at 88.82 U.S. cents, compared with 88.99 U.S. cents late Wednesday.
The S&P/ASX 200 was 0.3% lower, while South Korea?s Kospi lost less than 0.1%. ?The market is watching for U.S. nonfarm payrolls, due on Friday.
In the currency markets, South Korea?s won was steady at 1,063.96 against the dollar from its last closing of 1,064.90 won after the Bank of Korea decided to keep the benchmark lending rate unchanged at 2.5%, in line with expectations.
Source Marketwatch
