ASIA-PAC EQUITY WRAP: Asian stocks were mostly in the green but with gains capped after softer-then-expected Chinese inflation data

Analysis details (05:57)

Asia-Pac stocks were mostly positive albeit with gains capped for many of the regional bourses as participants digested softer-than-expected inflation data from China. ASX 200 (-0.3%) gave back early gains with price action rangebound as the gains in the commodity-related sectors are offset by losses in industrials, real estate and consumer stocks. Nikkei 225 (-0.2%) spent most of the session extending on last week’s slump before rebounding in late trade. Hang Seng (+0.8%) and Shanghai Comp. (+0.2%) traded higher with the Hong Kong benchmark boosted by the tech sector amid hopes that China could be nearing the end of the tech crackdown. Conversely, the gains in the mainland were capped after the latest Chinese inflation data missed estimates with zero consumer inflation in the mainland and a deeper contraction in factory gate prices, while there were recent comments from Treasury Secretary Yellen that they made some progress during her trip to Beijing and that ties were put on a super footing, although expectations had been set at a low level with the objective of her visit was to establish and deepen ties to the new Chinese economic team and reduce the risk of misunderstanding.

10 Jul 2023 - 05:54- Fixed IncomeEconomic Commentary- Source: Newsquawk