Asia report: Most markets higher as China inflation meets forecasts

Most markets in Asia finished in positive territory on Monday, as China inflation data for June fell into line with expectations, and traders in the region had their first chance to react to the solid jobs numbers out of the US on Friday.

Japan’s Nikkei 225 was up 0.76% at 20,080.98, as the yen weakened against the greenback, last retreating 0.25% to JPY 114.21.

Core machinery orders were down 3.6% month-on-month in May, according to data out of Tokyo, completely missing the 1.7% improvement forecast by a Reuters poll.

Sony Financial Holdings was up 0.25% on Monday, after Citi initiated coverage of the stock on Friday, setting its rating at ‘sell’ and its target price to JPY 1,600.

“We see more downside risk rather than upside potential for the shares over the next 12 months,” Citi analysts Koichi Niwa and Arisa Yoshikoshi noted.

On the mainland, the Shanghai Composite lost 0.19% to close at 3,211.85, while the smaller technology-heavy Shenzhen Composite was off 0.67% at 1,905.37.

Fresh inflation data for China was released during the day, coming in line with expectations as the consumer price index increased 1.5% year-on-year and the producer price index was up 5.5%.

South Korea’s Kospi was up 0.09% at 2,382.10, while the Hang Seng Index in Hong Kong ended 0.63% firmer at 25,500.06.

Orient Overseas International shares were ahead 20% in Hong Kong, after it emerged shipping giant Cosco Shipping Holdings wanted to buy the firm for $6.3bn.

Sunac shares were suspended from trade in the special administrative region on Monday, ahead of a “substantial” announcement.

Wanda Hotel Development was up 46.55% after it confirmed it was selling 76 of its hotels and 12 tourism projects to Sunac for CNY 63.18bn.

Oil prices were down during Asian trading, with Brent crude last off 1.04% at $46.23 and West Texas Intermediate off 1.03% at $43.78.

Australia’s S&P/ASX 200 was ahead 0.37% at 5,724.44, with the gains underpinned by strong performances from both the information technology and the weighty financials subindexes.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 0.5% to 7,583.95, although flag carrier Air New Zealand rose 2.2% to reach its highest price since a government bailout in 2001.

The airline failed 17 years ago, when the post-September 11 travel slowdown pushed the struggling carrier over the brink, bringing down Australia’s second airline - its subsidiary Ansett - with it.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.17% at AUD 1.3175 and the Kiwi also losing 0.17% to NZD 1.3756.