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Asia stocks turn lower after China CPI data; Nikkei ends down 0.7%

Published 05/09/2013, 02:43 AM
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Investing.com - Asian stock markets turned lower during late Asian trade on Thursday, erasing earlier gains after data showed that inflation in China accelerated at a faster rate than expected last month.

During late Asian trade, Hong Kong's Hang Seng Index was down 0.4%, Australia’s ASX/200 Index ended little changed, while Japan’s Nikkei 225 Index closed down 0.7% after hitting a five-year high on Wednesday.

Official data released earlier showed that consumer prices in China rose 2.4% in April from a year earlier, above expectations for a 2.3% increase and accelerating from a 2.1% rate of increase in March.

The faster-than-expected increase in the rate of inflation dampened hopes policy makers in Beijing could introduce fresh easing measures to boost economic growth in the world’s second largest economy.

In Hong Kong, the Hang Seng inched lower as property developers came under pressure following the CPI data.

China Overseas Land & Investment shed 1%, Sino Land and Sun Hung Kai Properties lost 0.5% and 0.7% respectively.

Elsewhere, in Australia, the benchmark ASX/200 Index ended little changed as stronger than expected employment data reduced expectations the Reserve Bank of Australia could lower rates again the near-term.

Data released earlier showed that the nation’s unemployment rate fell unexpectedly to 5.5% last month from 5.6% in March.

The economy added 50,100 jobs in April, blowing past expectations for an increase of 11,500.

Australian lenders came were mostly lower, with Australia's top lender, the Commonwealth Bank of Australia shedding 0.5%, while National Australia Bank and ANZ Banking Group dropped 2.1% and 3% apiece.

Meanwhile, in Tokyo, the Nikkei erased earlier gains, as the yen strengthened against the U.S. dollar.

Toyota saw shares fall 1.4% despite reporting robust earnings figures for the quarter ended March 31.

Looking ahead, European stock market futures pointed to a lower open.

The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures shed 0.3%, London’s FTSE 100 futures dipped 0.2%, while Germany's DAX futures pointed to a decline of 0.3% at the open.  

The U.S. was to release official data on initial jobless claims later in the trading day.

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