Asian Shares Mixed After Solid China Data

(RTTNews) - Asian stocks ended mixed on Thursday as investors weighed worries over an economic slowdown against improved Chinese data.

The dollar edged lower after central bank chiefs signaled a resolution to bring down inflation despite threats to economic growth.

Gold traded flat lower yields, while oil extended losses in Asian trade after declining about 2 percent on Wednesday on worries that an economic slowdown or recession would lead to lower oil demand growth through demand destruction.

China's Shanghai Composite index climbed 1.10 percent to 3,398.62 after China's official gauges of factory and services activity returned to expansion in June following three months of contraction.

Hong Kong's Hang Seng index ended 0.62 percent lower at 21,859.79, giving up early gains.

Japanese shares fell sharply and the yen hovered near a 24-year low after data showed Japan's industrial output fell the most in two years, stoking fears of an economic slowdown.

The Nikki average tumbled 1.54 percent to 26,393.04 while the broader Topix index closed 1.20 percent lower at 1,870.82. Energy stocks led losses, with Inpex Corp and Japan Petroleum falling around 4 percent each.

Tech stocks such as Advantest, Tokyo Electron and Screen Holdings lost 4-5 percent. Toyota Motor declined 1.3 percent after the world's largest car manufacturer missed its May production target.

Seoul stocks lost ground amid recession woes. The Kospi average plummeted 1.91 percent to settle at 2,332.64. Samsung Electronics gave up 1.7 percent and SK Hynix shed 3.2 percent as the outlook for chip sales ebbed. Top carmaker Hyundai Motor advanced 2.9 percent.

Australian markets tumbled on fears of rapid monetary policy tightening by major central banks. The benchmark S&P/ASX 200 fell 1.97 percent to 6,568.10 while the broader All Ordinaires index closed 1.91 percent lower at 6,746.50.

Weak iron ore prices weighed on the mining sector, with BHP, Rio Tinto and Fortescue Metals Group losing 3-5 percent. The big four banks fell between 2.2 percent 2.8 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 ended 0.82 percent lower at 10,868.70, posting its worst quarter since March 2020.

U.S. stocks fluctuated before closing mixed overnight and bond yields tumbled as Fed Chair Jerome Powell reiterated his hawkish stance on fighting inflation and cautioned there's no guarantee the Fed can engineer a "soft landing."

Investors also digested data showing that U.S. GDP shrank at an annual pace of 1.6 percent in the first quarter, slightly more than earlier estimates.

The Dow edged up 0.3 percent while the tech-heavy Nasdaq Composite and the S&P 500 finished marginally lower.