By Gina Lee
Investing.com – Asia Pacific stocks were mostly down on Thursday morning, with investors digesting mixed inflation data from China. They also continue to monitor a slowing global economic recovery from COVID-19.
China’s inched down 0.05% by 10:04 PM ET (2:04 AM GMT) while the inched up 0.06%. said that the consumer price index grew 0.1% and 0.8% in August. The grew 9.5% year-on-year.
Chinese stocks in the U.S. also fell over renewed concerns about China’s regulatory tightening on various sectors. In the latest development, Chinese authorities summoned gaming companies including Tencent Holdings (OTC:) Ltd. and Netease Inc. to discuss further tightening.
Hong Kong’s edged down 0.12%.
Japan’s was down 0.45% as the country debates extending the current state of emergency.
South Korea’s fell 0.80% and in Australia, the slid 1.07%.
Global shares’ recent rally to record levels is slowing down as investors await further signs that the economic recovery has recovered from the impact of recent Delta-variant outbreaks.
The possibility that central banks will gradually begin to withdraw monetary policy support is also of concern, ahead of the handing down its policy decision later in the day.
Fed Bank of New York president John Williams said “it could be appropriate” for the Fed to begin asset tapering before the end of 2021 in the latest comments on a timeline.
However, other factors are also contributing to shares’ slowdown, according to some investors.
“Momentum definitely seems to be slowing as far as the recovery is concerned. Before we’d been hearing that the Fed would tighten monetary policy and that’s what was unnerving the market. Now, it’s actually slightly softer data and also rising COVID-19 cases,” City Index senior financial markets analyst Fiona Cincotta told Bloomberg.
U.S. President Joe Biden is due to decide whether to nominate Fed Chairman Jerome Powell for a second term within the week.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.