Asia-Pacific stock markets mostly saw declines on Wednesday, as investors digested US inflation data and assessed Japan’s latest business sentiment report, CNBC reports.
US inflation data revealed that the producer price index (PPI), a measure of wholesale inflation, rose by only 0.2% in December, falling short of the expected 0.4% increase. The core PPI, which excludes food and energy costs, remained flat. This softer-than-expected inflation figure contributed to positive movement in US markets overnight, with the Dow Jones Industrial Average climbing 0.52%, while the S&P 500 gained 0.11%. In contrast, the tech-heavy Nasdaq Composite edged down by 0.23%.
In Asia, markets responded cautiously. Japan’s business sentiment showed signs of improvement, according to the Reuters Tankan survey for January. Large manufacturers reported a rebound in sentiment, with the reading rising to +2 from a negative -1 in December. Non-manufacturers also saw a modest increase in optimism, moving up to +31 from +30 in the previous month. Despite the positive sentiment, Japan’s Nikkei 225 index ended the day down slightly by 0.08%, marking a fifth consecutive day of losses. The Topix index, however, rose by 0.31%, breaking a four-day losing streak.
In Hong Kong, the Hang Seng index posted a modest gain, up 0.34%, while mainland China’s CSI 300 index fell by 0.64%. This drop followed a strong performance on Tuesday, which saw the index recording its best day since November.
South Korea’s Kospi index also saw a slight decline of 0.02%, while the Kosdaq, which tracks smaller companies, lost 0.9% following the arrest of former President Yoon Suk Yeol. Meanwhile, Australia’s S&P/ASX 200 slipped by 0.22%.
Looking at other key regional markets, Indonesia reported a narrower trade surplus for December, as imports rose sharply, surpassing expectations, while exports fell short of forecasts. On the corporate front, South Korea’s Samsung Heavy Industries saw its shares hit a near nine-year high, gaining 9.45%, likely boosted by favorable expectations surrounding the US oil and gas sector.
