Asia: Stocks decline after disappointing Japanese retail sales data

Asian stocks closed in the red following the release of disappointing Japanese retail sales and as depressed oil prices continued to drag.

Japan's Nikkei 225 declined 1.06% as retail trade sales increased 0.2% in December year-on-year, compared to 0.5% the month before and expectations of 0.9%.

Hurting exporters, the yen price of a dollar rose to ¥117.96 by 14:00 on Thursday.

China's Shanghai index was down 1.31% and Hang Seng dropped by 1.07% afterChinese regulators were said to be preparing to launch a fresh investigation into stock margin trading in 46 companies, according to reports.

"The inspection belongs to normal regular supervision and should not be over-interpreted," Xinhua news agency said, quoting the China Securities Regulatory Commission.

Subdued oil prices also continued to weigh on the market. Oil prices have fallen by almost 60% since June due in part to the boom in US shale production.

Brent crude rose 0.14% to $48.54 per barrel in morning trade, according to the ICE.

Meanwhile, CMC Markets analyst Jasper Lawler, noted a drop in copper prices amid weak demand in China. “Copper prices drifted back below $2.50 per lb on Wednesday towards the $2.45 which saw a big bounce on Monday.The drop in US durable goods orders reported on Tuesday doesn’t bode well for the prospect of US demand offsetting slowing demand from China.”

In the US, the Federal Reserve decided to keep interest rates unchanged at 0.25%, saying it would not raise borrowing costs any earlier than June. Analysts at Danske Bank said the statement “raises the likelihood of a later hike than we currently anticipate (June 2015)”.

Among companies, Nintendo was a big faller after issuing a profit warning on Wednesday.

Canon also slumped as the camera maker reported sluggish digital camera sales in the fourth-quarter.

Construction equipment makers Hitachi Construction and Komatsu also edged lower on worse-than-expected corporate reports.