Investing.com - Asian stock markets were mixed on Thursday, after data showed that consumer price inflation in China slowed to a seven-month low in December.
During late Asian trade, Hong Kong's Hang Seng Index dropped 1.1%, Australia’s ASX/200 Index ended 0.16% higher, while Japan’s Nikkei 225 Index closed down 1.5%.
Asia was given a negative lead from the U.S., where the Dow and S&P 500 closed lower following the release of the minutes of the Federal Reserve’s December policy meeting.
The minutes showed that policymakers cited a stronger labor market in their decision to cut the central bank’s asset purchase program by USD10 billion, reducing it to USD75 billion-a-month.
The minutes came on the heels of a report showing that the U.S. private sector added the largest number of jobs since November 2012 last month. ADP nonfarm payrolls rose by 238,000 in December, easily surpassing expectations for an increase of 200,000.
Investors turned their attention to Fridays’ U.S. nonfarm payrolls report for indications on the timing of further reductions to the pace of the Fed’s stimulus program.
Meanwhile, in China, data released earlier showed that consumer price inflation rose 2.5% in December, below expectations for a 2.7% increase and slowing from 3% in November.
In Tokyo, the Nikkei gave back most of the previous session’s strong gains as traders monitored movements in the currency market.
USD/JPY fell to a session low of 104.73, moving off the previous day’s high of 105.11. A stronger yen decreases the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Mazda and Mitsubishi saw shares retreat 1.5% and 1% respectively, while index heavyweights Fast Retailing and Fanuc lost 3.75% and 2.9%.
Elsewhere, in Hong Kong, the Hang Seng moved lower amid ongoing concerns over tight liquidity conditions in the financial system and rising interbank lending rates.
China Construction Bank lost 1.8%, Industrial and Commercial Bank of China slumped 1.8%, while China Merchants Bank and China Citic Bank dropped 1.5% and 2% respectively.
Meanwhile, in Australia, the ASX/200 Index inched higher following the release of upbeat retail sales data. The Australian Bureau of Statistics said retail sales there rose 0.7% last month, above expectations for a 0.3% increase.
The news boosted shares in the retail sector, with David Jones shares rallying 1.4%, while Harvey Norman added 1%.
Looking ahead, European stock market futures pointed to a flat open. The EURO STOXX 50 futures pointed to a gain of 0.05% at the open, France’s CAC 40 futures shed 0.1%, London’s FTSE 100 futures indicated a drop of 0.1%, while Germany's DAX futures pointed to a flat open.
The European Central Bank is to announce its benchmark interest rate. The announcement is to be followed by a press conference with President Mario Draghi. Germany is to publish data on industrial production.
Across the Atlantic, U.S. equity markets pointed to a modestly lower open. The Dow Jones Industrial Average futures pointed to a loss of 0.1%, S&P 500 futures dipped 0.1%, while the Nasdaq 100 futures indicated a decline of 0.1%.
The Labor Department is to release its weekly report on initial jobless claims.
During late Asian trade, Hong Kong's Hang Seng Index dropped 1.1%, Australia’s ASX/200 Index ended 0.16% higher, while Japan’s Nikkei 225 Index closed down 1.5%.
Asia was given a negative lead from the U.S., where the Dow and S&P 500 closed lower following the release of the minutes of the Federal Reserve’s December policy meeting.
The minutes showed that policymakers cited a stronger labor market in their decision to cut the central bank’s asset purchase program by USD10 billion, reducing it to USD75 billion-a-month.
The minutes came on the heels of a report showing that the U.S. private sector added the largest number of jobs since November 2012 last month. ADP nonfarm payrolls rose by 238,000 in December, easily surpassing expectations for an increase of 200,000.
Investors turned their attention to Fridays’ U.S. nonfarm payrolls report for indications on the timing of further reductions to the pace of the Fed’s stimulus program.
Meanwhile, in China, data released earlier showed that consumer price inflation rose 2.5% in December, below expectations for a 2.7% increase and slowing from 3% in November.
In Tokyo, the Nikkei gave back most of the previous session’s strong gains as traders monitored movements in the currency market.
USD/JPY fell to a session low of 104.73, moving off the previous day’s high of 105.11. A stronger yen decreases the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Automakers Mazda and Mitsubishi saw shares retreat 1.5% and 1% respectively, while index heavyweights Fast Retailing and Fanuc lost 3.75% and 2.9%.
Elsewhere, in Hong Kong, the Hang Seng moved lower amid ongoing concerns over tight liquidity conditions in the financial system and rising interbank lending rates.
China Construction Bank lost 1.8%, Industrial and Commercial Bank of China slumped 1.8%, while China Merchants Bank and China Citic Bank dropped 1.5% and 2% respectively.
Meanwhile, in Australia, the ASX/200 Index inched higher following the release of upbeat retail sales data. The Australian Bureau of Statistics said retail sales there rose 0.7% last month, above expectations for a 0.3% increase.
The news boosted shares in the retail sector, with David Jones shares rallying 1.4%, while Harvey Norman added 1%.
Looking ahead, European stock market futures pointed to a flat open. The EURO STOXX 50 futures pointed to a gain of 0.05% at the open, France’s CAC 40 futures shed 0.1%, London’s FTSE 100 futures indicated a drop of 0.1%, while Germany's DAX futures pointed to a flat open.
The European Central Bank is to announce its benchmark interest rate. The announcement is to be followed by a press conference with President Mario Draghi. Germany is to publish data on industrial production.
Across the Atlantic, U.S. equity markets pointed to a modestly lower open. The Dow Jones Industrial Average futures pointed to a loss of 0.1%, S&P 500 futures dipped 0.1%, while the Nasdaq 100 futures indicated a decline of 0.1%.
The Labor Department is to release its weekly report on initial jobless claims.