Asian Shares Mixed Ahead Of US CPI Data

(RTTNews) - Asian stocks ended mixed on Thursday as a drop in U.S. producer prices fueled hopes of Federal Reserve rate cuts and helped offset rising geopolitical tensions and widespread political turmoil in South Asia.

Federal Reserve policymakers look all but certain to reduce short-term borrowing costs by a modest quarter of a percentage point at their policy meeting next week, but a half-point cut might become a real possibility if U.S. core CPI data due later in the day underwhelms.

Consensus estimate show that the headline CPI likely rose 2.9 percent from a year earlier in August, the fastest pace since January, while the core measure likely held at 3.1 percent.

China's Shanghai Composite index climbed 1.65 percent to 3,875.31 on renewed optimism about artificial intelligence technology.

However, pharma stocks tumbled following reports that the Trump administration is considering new curbs on imports of experimental pharmaceuticals.

Hong Kong's Hang Seng index dipped 0.43 percent to 26,086.32 on profit taking after recent strong gains to a four-year high amid expectations for improved earnings growth and policy support from Beijing.

Japanese markets rallied as tariff worries eased and data showed Japan's wholesale inflation rose 2.7 per cent year-on-year in August, matching expectations.

Additionally, a government survey showed that sentiment among big Japanese firms turned positive for the first time in two quarters.

The Nikkei average jumped 1.22 percent to 44,372.50, hitting a new record high boosted by gains in technology shares. The broader Topix index settled 0.22 percent higher at 3,147.76.

Technology investor SoftBank surged nearly 10 percent after its Stargate Project partner, Oracle, gave an aggressive outlook for its cloud business.

Seoul stocks surged to reach a new record high after President Lee Jae Myung said he would not pursue plans to revise a capital gains tax on stock investments.

The Kospi average rose 0.90 percent to 3,344.20, extending its winning streak to an eighth session led by gains in technology stocks.

Australian markets ended slightly lower as healthcare stocks dragged and shares of Nine Entertainment slumped almost 36 percent on going ex-dividend, following the $3 billion sale of Domain.

The benchmark S&P/ASX 200 dropped 0.29 percent to 8,805 while the broader All Ordinaries index ended down 0.26 percent at 9,071.40.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.35 percent to 13,229.15.

The dollar rose modestly against a basket of currencies in Asian trade and gold ticked lower while oil steadied after three days of gains amid geopolitical tensions. U.S. stocks ended mixed overnight while Treasury yields touched their lowest level since April as softer-than-expected U.S. producer inflation data boosted hopes for Federal Reserve interest rate cuts.

The S&P 500 rose 0.3 percent and the tech-heavy Nasdaq Composite inched up marginally to reach new record closing highs while the Dow declined half a percent.