Asian stocks ended Tuesday’s session on a mixed note after the release of weak Chinese trade data and ahead of key inflation readings from the world’s largest economies due this week.
The dollar traded firm in Asian trade while oil and gold prices edged lower as investors awaited U.S. consumer price and producer inflation data that might influence the Fed’s plans for possible interest rate hikes.
Chinese and Hong Kong stocks fell after data showed China’s exports and imports both fell more than expected in July, threatening recovery prospects and adding to pressure on policymakers to unveil additional stimulus.
Chinese exports fell 14.5 percent from a year earlier in July, while imports tumbled 12.5 percent in a sign of weak overseas and domestic demand.
China’s Shanghai Composite index dropped 0.25 percent to 3,260.62 while Hong Kong’s Hang Seng plummeted 1.81 percent to 19,184.17.
Property developers were hit hard, with Longfor Properties and Country Garden Holdings plunging 5.6 percent and 13.6 percent, respectively after Moody’s flagged increased headwinds to the country’s property sector.
Chinese e-commerce giant Alibaba Group fell 2.7 percent ahead of its earnings release due on Thursday.
Japanese shares eked out modest gains despite wage growth and household spending data missing expectations.
The Nikkei average rose 0.38 percent to 32,377.29 while the broader Topix index ended 0.34 percent higher at 2,291.73.
Tech investor Softbank Group rose 1.5 percent after quarterly loss narrowed from last year. Sony Corp closed half a percent higher ahead of its earnings results due on Wednesday.
Seoul stocks fell for a fifth consecutive session after China’s disappointing trade data and amid apprehensions over additional rate hikes by the Federal Reserve.
The Kospi average slipped 0.26 percent to 2,573.98, dragged down by tech heavyweights.
Samsung Electronics fell 1.3 percent and SK Hynix lost 2.7 percent. Internet portal operator led losses to close 4.9 percent lower.
Australian markets ended on a flat note, with the benchmark S&P/ASX 200 ending with a positive bias at 7,311.10. The broader All Ordinaries index finished marginally lower at 7,519.70.
Commonwealth Bank of Australia, the country’s largest lender, rose 0.4 percent ahead of its fiscal 2023 earnings report, due Wednesday.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX-50 index settled 0.55 percent lower at 11,868.75.
U.S. stocks advanced overnight, with financials, consumer services and industrial stocks pacing the gainers ahead of key inflation readings.
The Dow climbed 1.2 percent, the S&P 500 added 0.9 percent and the tech-heavy Nasdaq Composite gained 0.6 percent.
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