Asia: Mixed stocks following disappointing Chinese data

Stocks in Asia finished mixed on Wednesday following disappointing data from China.

The Shanghai composite index and Hong Kong's Hang Seng fell 0.58% after retail sales in the world's second biggest economy dropped to 10% in April from 10.2% the month before, missing forecasts of a 10.5% growth rate.

Industrial production also came below expectations of 6% growth at 5.9%, despite being better than March's 5.6%.

Julian Evans-Pritchard, China economist at Capital Economics noted: "The rebound reflects the fading of distortions caused by the unusually late timing of Chinese New Year, which we think dragged down output growth in March.

The economist added, however, that he remains optimistic that the government’s annual growth target of “about 7%” can be achieved.

"The People’s Bank’s looser policy stance should begin to shore up activity in the coming months," Evans-Pritchard said.

Still in economic news, growth in Chinese fixed asset investment slowed to a 12% year-on-year from 13.5% in March.

In Japan, the Nikkei 225 was up 0.71% on hopes of the Bank of Japan maintaining its stimulus course thanks to improving economic data.

The Eco Watchers Survey released by the Japanese Cabinet Office showed on Wednesday its outlook for economic trends improved to 54.2 points in April from 53.4 the month before.

Australia's ASX also closed at 0.71% after the publication of the federal budget for 2015, which included a $20,000 tax cut for small business.

Fitch Rating analysts warned, however, that the budget highlights the "continued weakening of the country's long-term fiscal consolidation plans".

"Australia does benefit from a credible policy framework and Fitch expects Australia to continue to have a significantly lower debt burden than its 'AAA'-rated peers."

In corporate news, Japanese car manufacturers Toyota and Nissan were down following news that they are recalling 6.5m cars to replace potentially faulty airbag inflators made by Takata. Honda also said it would follow suit.

Australian retailer Wesfarmers gained 1.49% following news that Michael Chaney will return as chairman of the group next month.