© Reuters.
Investing.com – Most Asian stocks moved in a flat to lower range on Thursday as weaker-than-expected Chinese inflation data pointed to a slowing economic recovery in the region’s largest economy, while mixed US inflation data also weighed.
Chinese indices moved less than 0.1% in either direction, as data showed that it barely grew in the country, while it fell to its lowest level in nearly three years in April.
The reading, which followed the country this week, raised more doubts about an economic recovery in China post-COVID, and soured sentiment towards its markets.
Weakness in China extended to Hong Kong, which lost 0.2%. But the electric car maker Lee Otto Inc (HK:) was among the few outliers for the day, up as much as 16% after posting bumper profits in the first quarter.
Other markets with exposure to China also remained under pressure. The Australian index fell 0.2% as mining heavyweights dependent on China fell, while the index lost 0.5%.
Japan’s index was flat as investors awaited more quarterly earnings from the country. SoftBank Group Corp. is set to announce (TYO:) the technology investment giant reported its earnings after the bell on Thursday.
However, the Nikkei was trading near a nine-month high after a string of strong earnings from the country’s largest trading houses earlier this month.
The broader Asian markets were muted as traders digested the mixed US data. While the reading softened slightly more than expected through April, it remained well above the Fed’s annual target of 2%.
Inflation also increased, indicating that price pressures in the US have remained steady and are unlikely to prompt a less hawkish Fed in the coming months.
While markets are widely anticipating the Fed at its June meeting, investors are also scaling back expectations for a rate cut this year.
The prospect of US interest rates staying elevated for longer bodes ill for risk-driven Asian markets, with monetary conditions tightening around the world.
However, some Asian markets got a boost from a weak US inflation reading, as well as a strong finish overnight in US technology stocks. Indian indices were slightly higher in early trade, while South Korea’s index rose 0.4%.
It rose 0.5% after data showed more-than-expected growth in the first quarter.