Most Asian stock markets traded in narrow ranges on Thursday in anticipation of further cues on US interest rates from key inflation data, while Chinese markets recovered from heavy losses in the previous session.
Regional markets were mixed overnight on Wall Street, while US stock futures fell in Asian trade as some Federal Reserve officials also warned that the central bank has more work to do to reduce inflation.
Their comments added to market concerns ahead of data on the PCE price index, the Fed’s preferred inflation gauge, due later in the day. The reading is expected to reiterate that U.S. inflation remained steady in January.
Japanese stocks extended losses from record highs amid mixed data.
Japan's Nikkei 225 index fell 0.4%, while the TOPIX index fell 0.3% as both indexes fell further from record highs hit earlier in the week.
A slew of economic data released on Thursday provided a mixed picture of the Japanese economy. While retail sales rose more than expected in January, industrial production fell more than expected.
The data comes amid growing uncertainty about when the Bank of Japan plans to start raising interest rates. Hotter-than-expected inflation data released earlier this week added to bets that the BOJ could end its negative interest rate regime as soon as April.
China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.8% and 0.9% respectively, after each index fell more than 1% in the previous session on renewed concerns about the property market crisis. The concerns arose after troubled developer Country Garden Holdings Company Ltd (HK:2007) received a liquidation request from creditors.
Thursday’s gains were fueled by China’s security regulator pledging to further tighten its grip on the derivatives market to boost investor confidence. The regulator has introduced a series of new restrictions in recent weeks, including curbs on short selling, to help prop up the local market.
Hong Kong's Hang Seng Index rose 0.2%, with gains limited after GDP data on Wednesday showed the economy grew slightly worse than expected in the fourth quarter.
The focus is now on China's key purchasing managers' index data for February, due this Friday, which is expected to provide further signals on the strength of the domestic economic recovery.
Broader Asian markets moved in a flat-to-low range. Australia’s ASX 200 was flat after data showed retail sales rose less than expected in January, amid continued inflationary pressures and high interest rates.
South Korea's KOSPI index fell 0.5% amid profit-taking after a sharp rally in the previous session, especially in chipmaking stocks.
India's Nifty 50 index futures pointed to a steady open after the index fell more than 1% on Wednesday in a bout of heavy profit-taking.
Indian investors were also nervous ahead of key GDP data due later on Thursday, which is expected to show some moderation in an otherwise stellar economic performance.
Source: Investing
