Asia report: Markets fall ahead of key US inflation print

Stock markets in the Asia-Pacific region mostly suffered losses on Wednesday, as investors awaited key inflation data out of the United States.

Market participants were particularly focussed on the data to gather clues about the Federal Reserve's next move, following its recent rate hike where it opened the possibility of a pause in its tightening cycle.

“Asian equity markets maintained a muted tone overnight, mostly in the red after a lacklustre handover from Wall Street, where Fed officials' comments were deemed more hawkish than expected,” said Patrick Munnelly, market analyst at TickMill Group.

“While the Fed’s John Williams ceded he would consider a pause in the rate cycle at the next meeting, he was keen to confirm that he did not see the case for rate cuts this year as markets are currently predicting.

“The debt ceiling debate continues without any meaningful developments in discussions after another round of deadlock, with negotiations set to resume on Friday.”

Most bourses fall ahead of US inflation print

In Japan, the Nikkei 225 lost 0.41% to close at 29,122.18, while the broader Topix fell by 0.55% to 2,085.91.

The losses on Tokyo’s benchmark were led by Pacific Metals, down 10.36%, while NTN Corporation lost 10.14% and Mitsubishi Motors slid 9.83%.

China's Shanghai Composite declined 1.15% to close at 3,319.15, while the Shenzhen Component gained 0.14% to end the day at 11,140.19.

Among the biggest decliners in Shanghai were Arcplus Group, down 10%, China Galaxy, off 9.99%, and China Oilfield, which was 6.85% weaker.

The Hang Seng Index in Hong Kong slipped 0.53% to 19,762.20, led lower by Longfor Properties, down 3.94%, China Overseas, off 3.3%, and Shenzhou International Group, which was 3.28% weaker.

South Korea's Kospi lost 0.54% to 2,496.51, with SK Innovation falling 4.6%, and Hanmi Pharmaceutical losing 4.52%.

In Australia, the S&P/ASX 200 slipped just 0.12% to settle at 7,255.70, with Bank of Queensland and National Australia Bank leading Sydney’s losers, falling 4.23% and 4.02%, respectively.

Meanwhile, the S&P/NZX 50 in New Zealand went against the regional trend by advancing 0.82%, closing at 11,987.30.

Port of Tauranga was up 3.15%, and Restaurant Brands NZ gained 3.11% by the end of trading in Wellington.

In currency markets, the yen was last 0.03% stronger on the dollar to trade at JPY 135.19, while the Aussie weakened 0.14% to AUD 1.4809, and the Kiwi retreated 0.09% against the greenback to change hands at NZD 1.5799.

On the energy front, Brent crude futures were last down 1.15% on ICE at $76.55 per barrel, while the NYMEX quote for West Texas Intermediate lost 1.19% to $72.83.

Korean unemployment narrows in April

In economic news, South Korea's unemployment rate dropped to 2.6% in April according to fresh official data out of Seoul.

The seasonally-adjusted figure marked a decline from March's rate of 2.7%, and the 2.8% print from a year earlier.

A total of 759,000 people were unemployed in April, down from 806,000 year-on-year.

Additionally, South Korea's employment-to-population ratio rose to 62.6 for those aged over 15, up from 62 in April last year.

Reporting by Josh White for Sharecast.com.

NIKKEI 225 -120.64 (-0.41%) 29,122.18

RISERS
Marui Group +15.24% JPY 2,496.0
Yokogawa Electric Corporation +9.77% JPY 2,472.0
Mitsubishi Heavy Industries +6.07% JPY 5,508.0
Nichirei Corporation +5.95% JPY 3,010.0
Mitsubishi Corporation +3.73% JPY 5,342.0

FALLERS
Pacific Metals -10.36% JPY 1,679.0
NTN Corporation -10.14% JPY 310.0
Mitsubishi Motors Corporation -9.83% JPY 477.0
Taiyo Yuden -4.71% JPY 4,050.0
Konica Minolta -4.7% JPY 548.0

SHANGHAI COMPOSITE -38.52 (-1.15%) 3,319.15

RISERS
China TV Media +10.03% CNY 17,45
Bethel Automotive A +10.01% CNY 65.64
China Bester Group Telecom +10.01% CNY 14.40
EGing Photovoltaic Technology +10% CNY 6.93
China Auto Engineering +9.99% CNY 23.57

FALLERS
Arcplus Group -10% CNY 9.99
China Galaxy A -9.99% ANY 13.06
China Oilfield A -6.85% CNY 15.24
China Citic Bank A -6.18% CNY 7.44
Hunan Fangsheng Pharmaceutical -6.17% CNY 12.16

HANG SENG INDEX -105.38 (-0.53%) 19,762.20

RISERS
Sunny Optical Tech +3.29% HKD 83.10
Sands China +2.59% HKD 25.75
BYD Co Ltd H +2.44% HKD 243.40
SMIC +2.18% HKD 19.68
Geely Automobile +1.97% HKD 9.83

FALLERS
Longfor Properties -3.94% HKD 20.70
China Overseas -3.3% HKD 19.92
Shenzhou International Group -3.28% HKD 69.35
China Resources Land -3.22% HKD 34.55
Li Ning Co -3.13% HKD 51.10

KOSPI 100 -17.54 (-0.71%) 2,454.20

RISERS
Kia Corporation +2.74% KRW 90,000
LG Electronics +2.68% KRW 114,900
Hyundai Motor +2.44% KRW 210,000
SK Telecom +2.37% KRW 49,750
Gs Retail +2.22% KRW 27,600

FALLERS
SK Innovation -4.6% KRW 180,300
Hanmi Pharmaceutical -4.52% KRW 306,000
Kumho PetroChemical -3.85% KRW 129,900
Daewoo Shipbuilding -3.77% KRW 25,550
POSCO Future M -3.47% KRW 306,000

S&P/ASX 200 -8.4 (-0.12%) 7,255.70

RISERS
Paladin Energy +8.4% AUD 0.71
Meridian Energy +3.38% AUD 5.20
TELIX Pharmaceuticals +3.3% AUD 10.95
Lynas Rare Earths +3.27% AUD 7.57
Infratil +3.21% AUD 9.00

FALLERS
Bank of Queensland -4.23% AUD 5.66
National Australia Bank -4.02% AUD 26.26
Bluescope Steel -3.31% AUD 19.55
Pilbara Minerals -2.99% AUD 4.55
CSR -2.56% AUD 5.33

S&P/NZX 50 +97.69 (+0.82%) 11,987.30

RISERS
Port of Tauranga +3.15% NZD 6.55
Restaurant Brands NZ +3.11% NZD 7.63
Fletcher Building +2.81% NZD 4.75
Vista Group +2.34% NZD 1.31
Mainfreight +2.1% NZD 71.49

FALLERS
Stride Property -1.53% NZD 1.29
Serko -1.3% NZD 2.27
Pacific Edge -1.18% NZD 0.42
Chorus -0.98% NZD 8.61
Sky Network Television -0.38% NZD 2.64