Asia: Chinese stocks rise after inflation slowdown

Asian markets were mixed on Tuesday with Chinese stocks helped by a record low inflation reading in China, but Japanese stocks declining as a result of the uncertainty coming out of the Eurozone.

Shanghai's main index was up 1.5% as the annual rate of Chinese inflation slowed dramatically to a five-year low of 0.8% in January from the 1.5% print seen in the month before, missing consensus forecasts for a slowdown to 1%.

Analysts at Barclays said “there are a number of reasons to worry that deflation in China could reappear” and the lower inflation readings “should induce the People’s Bank of China to ease monetary policy further”.

Japan's Nikkei 225 fell 0.33% following disappointing data released on Monday night. M2 money stock was up 3.4% year-on-year in January, which was a decline from 3.6% last month.

M3 money stock was at 3.4% in January, down from 3.6% the month before.

Forecasts expected both data to remain unchanged from the previous month.

Worries about the future of Greece were also acting as a backdrop ahead of a meeting of Eurozone finance ministers on Wednesday, as the new government looks to ease the terms of its €240bn bailout.

Australia's ASX also fell 0.25% following worst-than-expected data on Tuesday morning. House prices rose to 6.8% year-on-year during the last quarter, against forecasts of 7.1% and compared to a increase of 9% last quarter.

On a more positive note, New Zealand stocks were up 0.25% ahead of consumer confidence and card retail sales later on Tuesday.