HONG KONG: Asian stocks were mixed early on Tuesday as dealers digested news that Chinese inflation came in below five percent, although oil was higher as violence erupted in several Middle East states.
Shanghai was 0.30 percent higher in the first few minutes of trade and Seoul gained 0.14 percent while Taipei added 0.13 percent.
Tokyo and Sydney were flat and Hong Kong dipped 0.42 percent.
Beijing announced that annual inflation in January came in at 4.9 percent, which although above the government's target of four percent for the year was below what many had expected.
It was slightly higher than December's 4.6 percent rate but off the two-and-a-half-year high 5.1 percent posted in November.
There are hopes that the figures will provide the central bank an opportunity to keep interest rates on hold as it struggles to keep a lid on rising prices, which the government fears could lead to social unrest.
Beijing has already raised interest rates three times in the past four months and has also increased banks' reserve requirement in effect cutting the amount they can lend on several occasions.
On currency markets the dollar was at 83.36 yen in early Tokyo trade, slightly up from 83.29 yen in New York Monday. The euro was at $1.3484, compared with $1.3486 in New York and the European unit fetched 112.46 yen, compared with 112.38 late Thursday.
Oil moved higher as pro-democracy movements spread to other Arab states days after Egyptian president Hosni Mubarak was forced out after three decades of rule.
New York's main contract, light sweet crude for March delivery, was up 24 cents at $85.05 per barrel while Brent North Sea crude for April advanced 13 cents to $103.21.
Iran saw security forces clash with demonstrators in Tehran, firing gas and paintballs, while there has also been violence in the Gulf state of Bahrain as well as Yemen.
Investors are concerned that the troubles around the oil-rich region could lead to supply problems, leading to higher prices.
Gold opened at $1,361.00-$1,362.00 an ounce in Hong Kong, up from Monday's close of $1,360.00-$1,361.00.
Comments
Comments are closed.