TOKYO (AP) – Asian stock markets were mostly lower Wednesday as data from both China and Japan pointed to continued weakness in the world’s second and third-largest economies.
KEEPING SCORE: Japan’s benchmark Nikkei 225 slipped 2.5 percent to 17,377.40 after a government survey showed a deterioration in business sentiment in the current quarter, especially among smaller companies. Hong Kong’s Hang Seng index slipped 0.2 percent to 23,446.43 while the Shanghai Composite rose 0.4 percent to 2,867.55 after a dramatic tumble Tuesday. South Korea’s Kospi lost 1.2 percent to 1,947.82 and Australia’s S&P/ASX 200 fell 0.2 percent to 5,271.60. Shares in Southeast Asia were mixed.
CHINA INFLATION: China reported Wednesday that its consumer price index rose 1.4 percent in November, the slowest pace in five years, and a sign of weak domestic demand. That was way below the government’s target of 3.5 percent, though lower oil prices are seen as an important factor.
THE QUOTE: “China has entered into a rapid dis-inflation process, and faces the risk of deflation as commodity prices continue to trend lower and growth is expected to slow further in the coming year,” ANZ economists Li-Gang Liu and Hao Zhou said in a commentary.
HANGOVER: China’s benchmark fell 5.4 percent on Tuesday, snapping a buying frenzy that has pushed it up by 41 percent since June. Investors remained cautious following sharp declines in Asia and Europe, where jitters over political developments in Greece added to uncertainty.