Most Asian stocks fell Friday after Chinese economic growth rate and inflation rose faster-than-expected, sparking fresh worries that more interest rate increases could soon follow.
The Nikkei 225 Index slid 62.40 points, or 0.7%, to end the trading week at 9,591.52
Hong Kong’s Hang Seng Index sifted off 5.93 points to 24, 008.10
In Tokyo, Hitachi Construction Machinery Co. dropped 1.4% and Sony Corp. fell 1.3%. In Taipei, Asia Cement Corp. dropped 2.1% and Acer Inc. dropped 1.6%, while in Seoul, Kumho Tire Co. shed 1% and Samsung Electronics Co. lost 1.3%.
Shares of Infosys Technologies Ltd. plunged 9.3% in afternoon trading, weighing heavily on the broad market. The fall came after Infosys’ nearly 14% increase in fiscal fourth-quarter net profit, and forecast of 8% to 10% earnings increase in U.S. dollar terms during the financial year started April 1, fell short of some expectations.
In Sydney, mining giants BHP Billiton Ltd. and Rio Tinto Ltd. dropped 1% and 1.1%, respectively, on Thursday’s weakness in copper prices.
But gold miners in and outside Australia were higher after spot gold hit a fresh record high of $1,478.05 U.S. per troy ounce in Asian trade.
Newcrest Mining Ltd. rose 1.5% in Sydney, while Zijin Mining Group Co. rose 1% in Hong Kong and 0.8% in Shanghai.
In foreign exchange markets, the euro slipped to $1.4468 U.S. from $1.4489 U.S. in late New York trade Thursday, and to ¥120.46 yen from ¥120.94, reflecting investor caution toward risk currencies amid fears of policy tightening in China and worries over European sovereign debt issues. The dollar was at ¥83.27, from ¥84.48.
CHINA
China has taken several tightening measures over the past year, including last week’s fourth hike in interest rates in six months, to temper inflationary pressures.
Shanghai’s CSI 300 Composite Index picked up 5.38 points or 0.2%, to 3,358.94
Many property developers, having dropped in the previous session in anticipation of a jump in March consumer prices, rose to lead the rebound.
Shares of Poly Real Estate Group Co. rose 2.3% in Shanghai, while China Vanke Co. gained 1.1% in Shenzhen.
Chinese insurers also climbed on hopes interest rate increases would boost their incomes, with China Life Insurance Co. adding 1.2% and Ping An Insurance Group Co. climbing 1.9%.
Data released earlier in the day showed China’s March consumer price index rose 5.4% from a year earlier, above the 4.9% rise in February, and marking the fastest inflation rate since July 2008.
Other data, including gross domestic product, also painted a picture of an economy still running at a pace that’s likely to keep inflation high. First-quarter GDP rose 9.7% on an annual basis, down marginally from the 9.8% expansion in the fourth quarter of 2010, but above market expectations.
The strong growth data led economists at Standard Chartered to raise their 2011 GDP forecast for China to 9.3% from 8.5%, taking into account the faster growth at the beginning of the year.
In other markets;
Korea’s Kospi Index leaned lower by 0.56 points to 2,140.50
Taiwan’s Taiex Index shed 84.61 points, or 1%, to 8,718.12
Singapore’s Straits Times Index was down 5.62 points, or 0.2%, to 3,153.30
New Zealand’s NZX 50 dropped 1.80 points to 3,452.69
Australia’s S&P/ASX 200 let go of 32.10 points, or 0.7%, to 4,852.10
