Chinese Data Fails Boost Asian Market Sentiment

Asian stocks moved negative in early trading Thursday as investors digested some of the Chinese economic data, which may provide further clues about the health condition of the 2nd largest economy in the world.

China's Shanghai Composite Index pared losses to 1% after the release of inflation data were mixed. China's CPI was reported to grow at an annual pace of 2% in August, exceeding the estimated increase of 1.8%. However, PPI should extend the decline for the month to 42 in a row, with a slump of 5.9%. Market participants also tend to ignore the Chinese premier Li Keqiang statement Wednesday, saying that China has been counteracting the main risk to the financial system while the economic outlook remains positive. The negative sentiment in the mainland China market dragging the Hang Seng index in Hong Kong fell 2.25%.

In Japan, the Nikkei 225 index spectacular rally on Wednesday failed to continue. Japanese stock indexes were to be weakened more than 3% at the beginning of the session on Thursday after the release of the data core machinery orders in July which showed a decrease of 3.6%, a 3.7% increase forecast dispelled. A number of profit-taking that hit financial shares such as Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Nomura Holdings, helped to bring pressure on the stock. While the weakening of the yen versus the US dollar has so far failed to boost the purchase orders for export-oriented stocks.

Elsewhere, South Korea's KOSPI is still able to survive around opening levels amid a decline in large-cap stocks. Samsung Electronics tracked down nearly 1%, while other blue chips such as Posco and KB Financial Group slumped respectively 1.3% and 0.7%.