Asia report: Markets mostly lower as China data disappoints

In Japan, the Nikkei 225 was down 1.29% at 20,163.80, as the yen strengthened 0.01% against the dollar to last trade at JPY 108.16.

The broader Topix index was off 0.85% at 1,522.01 in Tokyo trading.

On the mainland, the Shanghai Composite was 0.36% lower at 2,535.10, and the smaller, technology-heavy Shenzhen Composite lost 0.27% to 1,303.48.

Fresh official data out of China showed that December’s consumer price index rose 1.9% year-on-year, which was lower than the 2.1% predicted in a Reuters poll of economists.

Producer inflation came in well below expectations at 0.9%, compared to forecasts for a figure of 1.6%.

The inflation data followed weak manufacturing data for December in China, released earlier in the week, as investors looked for clues to any pain the country’s economy was experiencing as a result of the ongoing trade spat between itself and the US.

Vice-ministerial level representatives from both countries met in Beijing earlier in the week to hold trade talks, which extended into an unscheduled third day on Wednesday.

Market watchers took that extension as a positive sign, with China’s Foreign Ministry suggesting it showed both sides were “serious” about developments.

A statement from the office of the US Trade Representative said the discussions included “needed structural changes in China” in areas of concern for Washington, including cybersecurity, intellectual property and technology transfer.

It also suggested China had made a “pledge to purchase a substantial amount of agricultural, energy, manufactured goods, and other products and services from the United States”.

South Korea’s Kospi slipped 0.07% to 2,063.28, while the Hang Seng Index in Hong Kong went against the regional trend to rise 0.22% to 26,521.43.

SK Hynix was a standout performer on the Korean peninsula, rising 2.67%, while oil play SK Innovation was ahead 0.83%.

That firm’s chief executive announced during the session that oil buyers in South Korea would begin importing product from Iran again, later this month or next month.

Oil price were lower at the end of the Asian day, with Brent crude last down 0.41% at $61.19 per barrel, and West Texas Intermediate falling 0.67% to $52.01.

In Australia, the S&P/ASX 200 was also in the green, adding 0.29% to close at 5,795.30.

The hefty financials subindex was up 0.21%, with all of the big four banks in positive territory - Australia and New Zealand Banking Group rose 0.56%, Commonwealth Bank of Australia added 0.17%, National Australia Bank advanced 0.12%, and Westpac Banking Corporation tacked on 0.35%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.3% at 8,919.16, led lower by aged care property developer Ryman Healthcare, which was down 3.3%.

The down under dollars were a mixed bag, with the Aussie last 0.29% stronger on the greenback at AUD 1.3906, while the Kiwi weakened 0.03% to NZD 1.4733.