Asian stocks drift higher as CPI test approaches; China dips on US tariffs

Investing.com-- Most Asian stocks rose slightly on Wednesday ahead of key U.S. consumer inflation data, while Chinese markets lagged their peers after the Biden administration slapped the country with higher tariffs on several key industries. 

Wall Street indexes provided some positive cues to Asian markets, as they shrugged off a hotter-than-expected producer price index reading. 

But U.S. stock index futures stalled in Asian trade, as the hot PPI reading sparked caution ahead of a reading on U.S. consumer price index inflation, which is more closely tied to interest rates. 

Regional trading volumes were also somewhat muted on account of holidays in Hong Kong and South Korea.

Chinese stocks dip as US imposes harsher tariffs 

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell about 0.5% each on Wednesday, lagging their peers after the Biden administration sharply hiked tariffs on several key imports from the country, including electric vehicle batteries and semiconductors. 

The move drew ire from Chinese authorities, and sowed fears of retaliatory measures from the world’s second-largest economy. 

The tariffs were somewhat telegraphed by a slew of reports last week, and affect up to $18 billion in goods imported from China.  

The increased tariffs further soured sentiment towards Chinese markets, after another major default in the country’s property market pointed to more headwinds from the sector. 

But losses in Chinese stocks were limited by the prospect of more fiscal stimulus in the country, after Beijing said it will begin a massive 1 trillion yuan ($138 billion) bond issuance this week. 

Focus this week was also on Chinese industrial production and retail sales data, due this Friday. 

Japan’s Nikkei 225 buoyed by Sony 

Japan’s Nikkei 225 index was among the better performers for the day, rising 0.4% on sharp gains in electronics and entertainment giant Sony Corp (TYO:6758) (NYSE:SONY). 

The broader TOPIX index rose 0.3%. 

Sony rallied over 10% after it announced a $1.6 billion stock buyback and a five-for-one stock split. The move largely offset a 7% decline in annual profits, and a somewhat middling earnings outlook for fiscal 2025. 

Sentiment towards Japan was also on edge ahead of key first-quarter gross domestic product data, which is due on Thursday.

Broader Asian markets drifted higher. Australia’s ASX 200 index rose 0.4%, taking some support from soft wage data that diminished the prospect of a more hawkish Reserve Bank in the coming months. 

Futures for India’s Nifty 50 index pointed to a muted open, as the 2024 general elections carried on and kept traders largely cautious towards the country. 

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: