Investing.com - Asian shares fell on Thursday with regional sentiment driven by inflation figures from China which showed consumer prices under control, but producer prices up sharply.
The Shanghai composite edged down 0.70%, while Hong Kong's Hang Seng dropped 0.96% after the data.
Consumer prices in China fell to the lowest in two years at an annual pace of 0.8%, the National Bureau of Statistics said on Thursday, which compared to a gain of 1.7% expected as food prices dropped, and eased pressure after a 2.5% gain in January.
On a month-over-month basis, CPI fell 0.2% in February from a month earlier. Producer prices rose for the sixth straight month in February from a year earlier, up 7.8%.
Japan's Nikkei 225 eased 0.1%, while Australia's S&P/ASX fell 0.36% with a 1.87% drop in its energy sub-index and a 2.34% decline in its materials sub-index. South Korea's Kospi was nearly flat, up 0.04% as eyes turned to Samsung Group and the trial of Jay Y. Lee for bribery and embezzlement, amid a corruption scandal that has led to the impeachment of President Park Geun-hye.
Flagship Samsung Electronics (KS:005930) was down 0.05%.
Overnight, Wall St closed lower on Wednesday, as energy stocks weighed, after oil prices slumped more than 5% while investors digested a better than expected ADP report ahead of Non-farm payrolls.
Energy stocks were the main laggards of the session, as oil posted its worst day in 13 months, after crude oil inventories rose much larger than expected.
Meanwhile, a bullish ADP report boosted expectations the Federal Reserve will increase interest rates at its next meeting in March and lifted optimism for a better than expected Nonfarm Payrolls print on Friday.
ADP and Moody’s analytics said Wednesday, employment in the private sector climbed by 298,000 for the month, which dwarfed economists’ expectations of 190,000.
According to Investing.com’s Fed rate monitor tool, nearly 90% of traders expect a rate hike in March, compared to just under 80% last week.
The Dow Jones Industrial Average closed 0.33% lower at 20,855.73. The S&P 500 shed 0.12% and the Nasdaq Composite gained 0.06% to close at 5,837. The Dow closed lower for a third straight session.