Asia report: Stocks mixed as inflation remains in focus

Thursday's trading session in the Asia-Pacific region saw mixed results for equities, as investors processed the latest inflation data from the United States.

The US consumer price index (CPI) for April came in slightly lower than expected overnight, with a year-on-year increase of 4.9%, compared to the 5% projected by economists.

On a monthly basis, consumer inflation aligned with forecasts, rising by 0.4%.

“Asian equity markets traded with a mixed tone after yet another erratic performance on Wall Street,” said TickMill market analyst Patrick Munnelly.

“Indices whipsawed and treasuries rallied as US CPI came in broadly in line with expectations, while the headline number dipped under the expected 5% level printing 4.9%.”

Munnelly said the Hang Seng and Shanghai Composite reflected broader risk sentiment indecision.

“The latest Chinese inflation data added further fuel to fears of a slower economic rebound, as consumer prices increased at the most sluggish levels not seen since February 2021, coupled with factory gate prices data suggesting further deflationary pressure.”

Stocks mixed as inflation remains the focus

In Japan, the Nikkei 225 index recorded a marginal increase of 0.02%, closing at 29,126.72, while the broader Topix index was down 0.14% to settle at 2,083.09.

Among the notable performers on Tokyo’s benchmark were Tokyu Fudosan, which soared 6.92%, while Panasonic gained 5.98%, and Fujifilm Holdings saw an increase of 5.88%.

Mainland China's stock markets were mixed, with the Shanghai Composite down 0.29% at 3,309.55, while the Shenzhen Component inched up 0.02% to 11,142.52.

Among the leading losers in Shanghai were Anhui Transport and CSSC Steel Structure Engineering, which both experienced significant drops of 10%.

In Hong Kong, the Hang Seng Index was off 0.09% at 19,743.79, with China Hongqiao down 3.41%, Longfor Properties losing 2.9%, and China Resources Mixc off 2.72%.

South Korea's Kospi saw a marginal decrease of 0.22% to finish at 2,491.00, with E-Mart sliding 8.98%, while Gs Retail declined 3.8%.

In Australia, the S&P/ASX 200 ended the day with a slight drop of 0.05% to close at 7,251.90, as Block Inc fell 3.96% and Paladin Energy lost 3.52%.

Meanwhile, New Zealand's S&P/NZX 50 was off 0.83% at 11,887.76, led lower by Westpac Banking Corporation, which was down 3.65% in Wellington, while Serko lost 3.08%.

In currency markets, the yen was last 0.28% weaker against the dollar at JPY 134.72, while the Aussie was off 0.59% at AUD 1.4387.

The Kiwi, meanwhile, retreated 0.39% against the greenback to change hands at NZD 1.5768.

On the oil front, Brent crude futures were last up 0.98% on ICE at $77.16 per barrel, while the NYMEX quote for West Texas Intermediate rose 0.96% to $73.26.

Bank of Japan set to maintain easy policy, inflation in China cools in April

In economic news, the Bank of Japan (BoJ) highlighted the maintenance of its current uber-easy monetary policy in the summary from its late-April meeting.

The summary of opinions showed that the bank believed its 2% inflation target was within reach, although policymakers thought it appropriate to continue with monetary easing for the time being.

China, meanwhile, experienced a 0.1% year-on-year increase in its consumer price index (CPI) for April, marking the slowest growth since early in 2021.

On a month-on-month basis, prices declined 0.1%.

Economists polled by Reuters had pencilled in a 0.4% year-on-year rise in consumer prices, and no change from the prior month.

“The divergence between services and goods inflation is likely to continue, as the services rebound outpaces domestic spending on goods,” said Duncan Wrigley, chief China economist at Pantheon Macroeconomics.

“Auto sales are starting to bottom up, as a price war abates.

“Still, we don’t expect a swift recovery, given that the government has refrained from renewing the auto tax purchase incentives used to stabilise growth in the second half.”

Wrigley said Beijing was likely to provide only targeted consumption measures in the coming months, though he saw an increasing chance that slowing growth in the second quarter would prompt a broader policy response in the second half.

Elsewhere, food inflation in New Zealand surged 12.5% year-on-year in April, reaching the highest level since September 1987.

Grocery food prices rose by 14%, the country’s statistics bureau said, while fruit and vegetable prices saw a substantial jump of 22.5%.

Meat, poultry, and fish prices also rose by 9.5%.

Food inflation has remained a key economic and political issue in New Zealand, with the government commissioning an investigation into the controversial grocery duopoly controlled by the Foodstuffs cooperative and the ASX-traded Woolworths Limited in the wake of the pandemic.

Finally on data, the Philippines economy grew 6.4% year-on-year in the first quarter, topping Reuters-polled expectations for a 6.1% uptick.

It was still, however, the lowest rise in GDP in eight quarters.

On a quarter-on-quarter basis, GDP expanded 1.1%, which was also higher than the 0.9% growth expected.

Reporting by Josh White for Sharecast.com.

NIKKEI 225 +4.54 (+0.02%) 29,126.72

RISERS
Tokyo Fudosan +6.92% JPY 726
Panasonic +5.98% JPY 1,374.5
Fujifilm Holdings +5.88% JPY 7,659
Eneos Holdings +5.33% JPY 506
Yamato Holdings +5.12% JPY 2,504

FALLERS
Kyowa Kirin -12.99% JPY 2,619
Sumitomo Metal Mining -11.74% JPY 4,466
Sumitomo Osaka Cement -7.83% JPY 3,530
Obayashi Corporation -7.08% JPY 1,089
Teijin -6.61% JPY 1,413

SHANGHAI COMPOSITE -9.60 (-0.29%) 3,309.55

RISERS
Beijing Bashi Media +10.09% CNY 4.91
Heilongjiang Interchina +10.08% CNY 2.84
China Hi-Tech +10.04% CNY 8.00
China Film +10.03% CNY 19.31
Inly Media +10.01% CNY 14.29

FALLERS
Anhui Transport -10% CNY 14.94
CSSC Steel Structure Engineering -10% CNY 26.10
Bank of Xi’An -9.89% CNY 4.28
Dawning Information Industry -7.49% CNY 46.35
AVIC Capital -7.02% CNY 4.24

HANG SENG INDEX -18.41 (-0.09%) 19,743.79

RISERS
Alibaba +3.05% HKD 82.65
WuXi Biologics +2.98% HKD 46.60
SMIC +2.39% HKD 20.15
CLP Holdings +1.91% HKD 61.50
Haidilao International +1.87% HKD 18.56

FALLERS
China Hongqiao -3.41% HKD 7.37
Longfor Properties -2.92% HKD 20.10
China Resources Mixc -2.72% HKD 37.50
Xinyi Glass -2.48% HKD 13.38
Techtronic Industries -2.37% HKD 80.30

KOSPI 100 -8.02 (-0.33%) 2,446.18

RISERS
Meritz Financial Group +4.33% KRW 45,750
GS Engineering +3.58% KRW 21,700
Lotte Chemical +3.31% KRW 175,000
Korea Aerospace +2.94% KRW 52,500
S-1 Corporation +2.83% KRW 58,100

FALLERS
E-Mart -8.98% KRW 90,200
Gs Retail -3.8% KRW 26,550
NCsoft Corporation -3.75% KRW 372,500
SK Bioscience -3.35% KRW 77,900
Hanmi Science -3.2% KRW 39,300

S&P/ASX 200 -3.80 (-0.05%) 7,251.90

RISERS
Allkem +15.72% AUD 14.94
Graincorp +10% AUD 7,81
Core Lithium +8.82% AUD 1.11
Pilbara Minerals +5.06% AUD 4,78
Sayona Mining +5% AUD 0.21

FALLERS
Block Inc -3.96% AUD 84.70
Paladin Energy -3.52% AUD 0.685
Capricorn Metals -3.21% AUD 4.22
De Grey Mining -2.93% AUD 1.49
CSR -2.81% AUD 5.18

S&P/NZX 50 -99.54 (-0.83%) 11,887.76

RISERS
Stride Property +1.55% NZD 1.31
Pacific Edge +1.19% NZD 0.425
Arvida +0.97% NZD 1.04
Manawa Energy +0.81% 4.98
Air New Zealand +0.66% NZD 0.76

FALLERS
Westpac Banking Corporation -3.65% NZD 22.43
Serko -3.08% NZD 2.20
Mainfreight -2.64% NZD 69.60
Scales Corporation -2.1% NZD 3.27
Skellerup -2.06% NZD 4.75