By Gina Lee
Investing.com – Asia Pacific stocks were mixed on Monday morning, with investors digesting the latest Chinese and Japanese economic data.
China’s Shanghai Composite inched down 0.17% by 9:13 PM ET (2:13 AM GMT) and the Shenzhen Component edged down 0.18%. Economic data released earlier in the day in China showed that fixed asset investment grew 6.1% year-on-year, industrial production grew 3.5% year-on-year and retail sales grew 4.9% year-on-year in October. The unemployment rate remained unchanged at 4.9%.
Chinese President Xi Jinping will reportedly hold a virtual summit with his U.S. counterpart Joe Biden on Monday, and the Beijing Stock Exchange also launched earlier in the day.
Japan’s Nikkei 225 was up 0.45%. Data released earlier in the day showed that the third quarter GDP contracted by a larger-than-expected 3% year-on-year and 0.8% quarter-on-quarter.
Hong Kong’s Hang Seng Indedx inched down 0.07% while South Korea’s KOSPI jumped 1.05%.
In Australia, the ASX 200 was up 0.44%, with the Reserve Bank of Australia due to release the minutes from its November meeting on Tuesday.
U.S. Treasuries steadied following volatility that was a reflection of the uncertainty that surrounds the economic recovery from COVID-19. Investors are also focused on how much longer high inflation will last and central banks’ timelines for interest rate hikes.
Although global shares remain near record highs, some investors remain worried that persistently high inflation could prompt central banks to bring these timelines forward.
“We’ve seen inflation prints that we haven’t seen in decades,” UBS Private Wealth Management managing director Terri Jacobsen told Bloomberg.
Shares can continue rallying as global supply chain issues are resolved and corporate earnings stay strong, with the U.S. Federal Reserve staying patient on further monetary tightening, she added.
However, some central bank officials remain convinced that high inflation will remain temporary. The Fed should not overreact to high inflation even as it causes pain because it is likely to prove temporary, said Fed Bank of Minneapolis President Neel Kashkari. U.S. Treasury Secretary Janet Yellen said controlling COVID-19 in the U.S. will be crucial to easing inflationary pressures
Thomas Barkin, Esther George, Raphael Bostic, and Patrick Harker, who head the Fed Banks of Richmond, Kansas City, Atlanta, and Philadelphia respectively, will speak at various events on Tuesday. The U.S. also releases retail sales figures on Tuesday.
Fed Vice Chairman Richard Clarida and Fed Bank of San Francisco President Mary Daly will speak at Asia Economic Policy Conference on Friday.