Asian Shares Mixed After US, Chinese Inflation Data

(RTTNews) - Asian stocks ended mixed on Thursday as hotter-than-expected U.S. inflation data stoked fresh uncertainty about the pace of Federal Reserve rate cuts this year.

The dollar firmed up, pushing the Japanese yen down to a 34-year low. U.S. Treasury yields steadied after surging to their highest levels since November on Wednesday.

Oil prices were marginally lower in Asian trading after settling up $1 a barrel in the previous session. Gold eked out modest gains after reports of an imminent Iranian attack on Israel.

The European Central Bank delivers its rate decision later in the day, with no change in policy expected. The focus would be on whether officials would back a rate cut in June.

Chinese shares rose as data showed consumer prices in the world's second-largest economy rose 0.1 percent year-on-year in March - missing expectations for a gain of 0.4 percent and slowing from 0.7 percent in the previous month.

The produce price index fell 2.8 percent on year, matching forecasts following the 2.7 percent contraction a month earlier.

The benchmark Shanghai Composite index edged up 0.23 percent to 3,034.25, led by resource stocks. Hong Kong's Hang Seng index slipped 0.26 percent to 17,095.03.

Japanese stocks ended lower as a spike in bond yields weighed on technology and property stocks.

The Nikkei average dropped 0.35 percent to 39,442.63 while the broader Topix index settled 0.15 percent higher at 2,746.96.

The Japanese currency weakened past the 152 level, prompting a warning from Japan's top currency diplomat, Masato Kanda, that authorities would not rule out any steps to respond to disorderly exchange-rate moves.

Mitsui Fudosan tumbled 4 percent to lead losses in the Nikkei pack. 7-Eleven operator Seven & i Holdings plunged 4.8 percent after an announcement that it is considering separating its Ito-Yokado supermarket arm from the lucrative 7-Eleven franchise.

Seoul stocks ended on a flat note, with the Kospi average finishing marginally higher at 2,706.96 after a choppy session.

Chipmakers and auto companies gained ground, with IT and financial shares closed on a subdued note.

Australian markets declined, with property, technology and financial stocks underperforming after an Israeli strike killed three sons of a Hamas leader.

The benchmark S&P ASX 200 fell 0.44 percent to 7,813.60 while the broader All Ordinaries index closed down 0.44 percent at 8,074.10.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index ended down 0.31 percent at 11,934.31.

U.S. stocks fell sharply overnight while bond yields surged, as signs of sticky inflation and the release of minutes of the Fed's March meeting highlighting upside risks around inflation forecasts dented hopes for a June rate cut.

The Dow fell 1.1 percent to reach its lowest closing level in almost two months while the S&P 500 shed 1 percent and the tech-heavy Nasdaq Composite gave up 0.8 percent.

U.S. consumer inflation rose 0.4 percent month-on-month in March, while the annual inflation came in at 3.5 percent. Both exceeded forecasts for a score of 0.3 percent and 3.4 percent, respectively.

Core inflation too remained hot, rising 3.8 percent on an annual basis, versus 3.7 percent expected.

The yield on the benchmark ten-year note spiked above 4.50 percent for the first time since mid-November as the latest Fed meeting minutes revealed concern among officials over stalling inflation progress.