Asia-Pacific markets were mixed on Wednesday as investors digested regional economic data ahead of key releases from China and Australia.
By 11 am AEST (1 am GMT), Australia’s S&P/ASX 200 was up 0.3%, while Japan’s Nikkei 225 edged higher by 0.1%. South Korea’s Kospi 200 dipped 0.1%.
South Korea’s latest data showed monthly industrial production rose 2.9%, significantly ahead of the 0.2% increase expected. However, retail sales in the country declined by 0.3%, reversing the prior month’s 1.9% gain.
In Japan, monthly industrial production contracted by 1.1%, a deeper fall than the anticipated 0.4% decline. Retail sales also disappointed, slipping 1.2% against forecasts for a 0.4% rise.
In Australia, the monthly Consumer Price Index remained steady at 2.4% according to the Australian Bureau of Statistics, while the Reserve Bank of Australia's preferred measure fell to 2.9%.
Meanwhile, China’s manufacturing activity contracted sharply in April, with the official National Bureau of Statistics (NBS) manufacturing PMI dropping to 49.0 - its lowest level in nearly two years - amid rising U.S. trade tensions.
The Bank of Japan commenced its two-day policy meeting on Wednesday, with markets broadly expecting it to keep its benchmark rate unchanged at 0.5% when the decision is announced on Thursday.
Market participants are also preparing for upcoming data across the region. China is set to release its official manufacturing and non-manufacturing purchasing managers' indexes (PMI) figures for April, while Australia will report inflation data.
In the United States, equities posted gains overnight. The Dow Jones Industrial Average gained 0.8%, the S&P 500 rose 0.6%, while the Nasdaq Composite added 0.6%.
Commodities weakened. Brent crude dropped 2.3% to US$63.28 per barrel, while spot gold slid 0.8% to US$3,317.15 per ounce.
In China, equities were subdued. The Shanghai Composite fell 0.1% to 3,286.7, while the CSI 300 slipped 0.2% to 3,775.1. Hong Kong’s Hang Seng Index edged up 0.2% to 22,008.1.
India’s BSE Sensex added 0.1%, climbing to a fresh three-month high of 80,288.4.
European markets also closed mixed. The UK’s FTSE 100 rose 0.6% to 8,463.5, Germany’s DAX gained 0.7% to 22,425.8, while France’s CAC 40 declined 0.2% to 7,555.9.
