Asia report: Hong Kong leads gains on mixed day for region

The moves came as Japan’s corporate inflation rate came in marginally above expectations for February.

“Most Asian equity markets are on the rise, although Japan and one key index in China are experiencing declines,” said TickMill market analyst Patrick Munnelly.

“Bank of Japan governor [Kazuo] Ueda, testifying to parliament, refrained from indicating whether the BoJ will raise interest rates next week, stating that ‘more data will come this week’.

“Meanwhile, the New York Federal Reserve's gauge of consumer inflation expectations saw a slight uptick in median and longer-term measures.”

Munnelly said the day's primary focus would be on the February consumer price index (CPI) data out of the United States, which could indicate a slowdown in the downward trajectory of inflation.

“Factors such as higher gasoline prices may influence the headline rate, while persistent issues with seasonal adjustment and relatively stable services inflation are expected.

“The annual headline inflation rate is forecasted to remain unchanged from January at 3.1%, with some upside risks, while the core inflation rate is predicted to have slightly eased to 3.8% from 3.9%.

“US Federal Reserve chair [Jerome] Powell suggested the likelihood of a US interest rate cut by mid-year unless the inflation outlook deteriorates, and today’s data will likely not disrupt that plan.”

Hong Kong surges on mixed day for region

In Japan, the Nikkei 225 fell 0.06% to 38,797.51 and the Topix fell 0.36% to 2,657.24.

Leading the fallers in Tokyo was Renesas Electronics, down 4.03%, followed by Mitsui & Co with a fall of 3.45%, and MS&AD Insurance Group, which lost 3.45%.

In China, the Shanghai Composite dipped by 0.41% to 3,055.94, while the Shenzhen Component edged up by 0.51% to 9,630.54.

Companies such as China Coal Xinji Energy and Cultural Investment Holdings experienced significant declines, of 7.79% and 6.64%, respectively.

Meanwhile, Hong Kong's Hang Seng Index surged by 3.05% to reach 17,093.50, buoyed by robust performances from Longfor Properties, which added 14.11%; Haidilao International, up 13.62%; and Xiaomi, which shot 11.34% higher.

Xiaomi's shares jumped after announcing that it would start deliveries of its first electric vehicle, the SU7 model, from 28 March.

The company said in a post on Chinese social media platform Weibo that orders for the SU7 model would be accepted at 59 stores across 29 cities in China.

South Korea's Kospi index advanced by 0.83% to settle at 2,681.81, with notable gainers including Posco International, up 13.01%, and Samsung SDI, which added 11.12%.

In Australia, the S&P/ASX 200 rose marginally by 0.11% to reach 7,712.50, led higher by Bellevue Gold and Alumina, which were up 10.31% and 8.09%, respectively.

Conversely, New Zealand's S&P/NZX 50 index declined by 0.37% to 11,829.18, with Synlait Milk down 5.33%, and Freightways closing 4.79% lower.

In currency markets, the dollar was last up 0.3% on the yen, trading at JPY 147.39, while it slipped 0.03% against the Aussie to AUD 1.5115.

The greenback meanwhile rose 0.11% on the Kiwi, changing hands at NZD 1.6225.

On the oil front, Brent crude futures were last up 0.75% on ICE at $82.83 per barrel, while the NYMEX quote for West Texas Intermediate was ahead 0.68% at $78.46.

Japan's corporate goods price index tops expectations

In economic news, Japan's corporate goods price index (CGPI) surpassed expectations, showing an increase of 0.6% year-on-year in February.

Economists polled by Reuters had expected 0.5% growth.

On a month-on-month basis, the CGPI climbed 0.2%, surpassing the 0.1% expectation in Reuters polling.

The acceleration came as a stark contrast to the stagnant 0% reading seen in December.

A strong corporate inflation reading could pave the way for Japan’s central bank to consider raising interest rates sooner rather than later.

Reporting by Josh White for Sharecast.com.