China stocks flat on cool inflation data; Hong Kong shares fall

Hong Kong’s Hang Seng Index jumped over 2 percent to the highest level in almost two months.

MSCI’s broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS was down 0.6 per cent in afternoon trade, while Japan’s Nikkei stock index.N225 ended down 1.9 per cent.

While Beijing has generally refrained from launching widespread stimulus measures to boost slowing growth, it has resorted to a steady drip-feed of measures in recent weeks to support various sectors ranging from housing to autos, calming investor sentiment, and sparking a rally in the Hong Kong listed shares of Chinese companies.

Elsewhere in the region today, the Philippine peso dropped 0.7 per cent and the Thai baht fell 0.5 per cent.

The dollar index, which tracks the greenback against a basket of six peers, was down about 0.1% on Wednesday at 94.662, after falling as low as 94.539 on Tuesday, its lowest since September 18.

Anyuan Coal Industry shares surged by their maximum 10 percent daily limit, after the coal miner disclosed in its quarterly report that China’s state investment firm and margin lender had become its major shareholders.

Overnight, soft readings on consumer spending, inflation and jobs in the USA bolstered the case for the Federal Reserve to hold off from raising interest rates in coming months and battered the us dollar. “China’s weakening economy will continue to weigh on the market”, Tim Schroeders, a portfolio manager who helps oversee about $1 billion in equities at Pengana Capital Ltd.in Melbourne, said by phone.

“It was quite disappointing”, said Angus Nicholson, a market analyst at brokerage IG.

The Indonesian rupiah hit a fresh four-month high, ahead of the Indonesian central bank’s interest-rate decision later Thursday.

Meanwhile, the central bank set its yuan weaker against the US dollar in the morning for the first time in eight days.

CURRENCIES: The dollar fell to 119.52 yen from 119.76 yen on Tuesday. While the gains follow authorities’ decision to ease currency policy, the moves weren’t as aggressive as expected and followed improving growth data.

The Malaysian ringgit was last up 0.7% against the US dollar, near its strongest since August.

While most analysts expected the outcome, pressure has been mounting on the Bank of Korea to ease policy after two rate cuts earlier this year have done little to alleviate dismal exports and weak demand at home. China Tower will be 38 per cent owned by market leader China Mobile, according to a statement. Inflation data are due on Wednesday.

After USA markets closed on Tuesday, J.P. Morgan Chase & Co. reported higher third-quarter profits but lower revenue.

Total turnover on the Shanghai and Shenzhen bourses rose slightly to 769.14 billion yuan ($121.3 billion), up from 766.37 billion yuan on the previous trading day.

Corp., the nation’s biggest reinsurer, will sell about half of its as much as $2 billion Hong Kong initial public offering to cornerstone investors.