Asian stocks skittish before US inflation cues; China rebounds
Investing.com-- Most Asian stocks moved in a flat-to-low range on Thursday in anticipation of more cues on U.S. interest rates from key inflation data, while Chinese markets rebounded from heavy losses in the prior session.
Regional markets tracked a middling overnight session on Wall Street, while U.S. stock futures fell in Asian trade as several Federal Reserve officials also warned that the central bank had much more work to do in bringing down inflation.
Their comments saw markets grow even more anxious ahead of PCE price index data- the Fed’s preferred inflation gauge, which is due later in the day. The reading is expected to reiterate that U.S. inflation remained sticky in January.
Japan’s Nikkei 225 index fell 0.4%, while the broader TOPIX lost 0.3% as both indexes fell further from record highs hit earlier in the week.
A batch of economic readings released on Thursday provided a mixed picture of the Japanese economy. While retail sales grew more than expected in January, industrial production shrank much more than expected.
The data came amid increasing uncertainty over when the Bank of Japan plans to begin raising interest rates. Hotter-than-expected inflation data released earlier this week ramped up bets that the BOJ could end its negative interest rate regime by as soon as April.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.8% and 0.9%, respectively, after tumbling more than 1% each in the prior session on renewed concerns over a property market crisis. The concerns came after embattled developer Country Garden Holdings Company Ltd (HK:2007) was hit with a liquidation petition by a creditor.
Thursday’s gains were driven by China’s security regulator vowing to further tighten its
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