Asian Shares Mixed As China Concerns Weigh

(RTTNews) - Asian stocks turned in a mixed performance on Wednesday as weak China bank lending data and a decision by index provider MSCI to cut China stocks from its indexes offset signs of cooling inflation in the U.S.

The dollar index held steady near a four-month low in Asian trading, gold edged up slightly and Treasuries were little changed ahead of the U.S. CPI report due later in the day that could allow the Federal Reserve to ease policy in September.

Oil prices rebounded on signs of falling U.S. inventories and simmering tensions in the Middle East.

China's Shanghai Composite index dipped 0.60 percent to 2,850.65 ahead of key retail sales, home prices and industrial production data on Thursday that might show the economy is still faltering.

Hong Kong's Hang Seng index slipped 0.35 percent to 17,113.36, retreating from a two-week high ahead of Tencent Holdings Ltd.'s earnings and its share-purchase plans.

Japanese markets advanced and the yen stabilized after Prime Minister Fumio Kishida announced he will not run for re-election, paving the way for a new leader in September.

The Nikkei average rose 0.58 percent to 36,442.43 while the broader Topix index settled 1.11 percent higher at 2,581.90. Insurance, nonferrous metal, and rubber product issues paced the gainers.

Seoul stocks ended higher for a fourth day running on bets the Fed will start cutting interest rates soon. The Kospi average gained 0.88 percent to close at 2,644.50 led by tech stocks and battery makers.

Samsung Electronics gained 1.5 percent and SK Hynix jumped 2.6 percent, tracking AI chip giant Nvidia's rally overnight. LG Energy Solution climbed 2.3 percent to reflect Tesla's gain.

Australian markets eked out modest gains, with healthcare, IT and real estate stocks leading the surge. The benchmark S&P/ASX 200 edged up 0.31 percent to 7,850.70 while the broader All Ordinaries index finished up 0.35 percent at 8,070.20.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 2.06 percent to 12,572.53 after the country's central bank slashed its benchmark rate for the first time since March 2020 and flagged more cuts over coming months.

U.S. stocks rose sharply overnight while Treasury yields dipped as softer producer prices data signaled abating inflation pressures.

Data showed producer prices, the wholesale inflation, grew 2.2 percent in July after climbing an upwardly revised 2.7 percent in June - adding to bets that the Federal Reserve will begin cutting interest rates in September.

The tech-heavy Nasdaq Composite soared 2.4 percent and the S&P 500 surged 1.7 percent to score their biggest four-day rally of 2024 while the Dow gained 1 percent.