Asian Shares Mixed As China Worries Linger

(RTTNews) - Asian stocks ended mixed in thin trade on Thursday, with markets in India, Singapore, Indonesia and Malaysia closed for holidays.

Amid continued concerns of a global economic slowdown, investors awaited Chinese PMI data due on Friday for direction.

Technology stocks came under selling pressure after reports suggested that the U.S. is considering new curbs on AI chip exports to China.

The U.S. yield curve inversion deepened, and the dollar held near a more than seven-month high to the Japanese yen after leading global central bankers asserted the need to keep raising interest rates to tackle persistent inflation.

Gold hovered near four-month lows while oil prices gave back some ground after rising sharply in the U.S. trading session overnight on data showing a bigger-than-expected decline in U.S. crude stockpiles.

China's Shanghai Composite index slipped 0.22 percent to 3,182.38 as traders awaited key Chinese economic data this week for additional clues to the country's post-COVID recovery.

Hong Kong's Hang Seng index fell 1.24 percent to 18,934.36 as heavyweight technology stocks tumbled after reports that the U.S. may impose more restrictions on semiconductor exports to China.

Japanese shares edged up slightly after data showed retail sales in the country rose for the 15th straight month in May, adding to signs of economic recovery.

The Nikkei average edged up 0.12 percent to 33,234.14 to extend gains for a second day running, while the broader Topix index ended 0.10 percent lower at 2,296.25. A softer yen lifted exporters, with Suzuki Motor and Nissan Motor rallying 3-4 percent.

Seoul stocks ended lower for a third consecutive session as traders reacted to Fed Chair Jerome Powell's hawkish remarks at an ECB forum in Portugal and awaited the outcome of the first bilateral meeting between Japan and South Korea in seven years. The Kospi average dropped 0.55 percent to 2,550.02.

Australian markets gave up earlier gains to end on a flat note as strong retail sales data stoked concerns over more interest rate hikes by the Reserve Bank.

The benchmark S&P/ASX 200 finished marginally lower at 7,194.90 before next week's RBA policy decision while the broader All Ordinaries index ended little changed with a positive bias at 7,389.60. Miners and gold stocks led losses, while banks ended on a positive note.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index gained 0.64 percent to close at 11,808.12.

U.S. stocks ended a choppy session mixed overnight after Fed Chair Jerome Powell and heads of other top central banks signaled further policy tightening to tame stubbornly high inflation.

Powell indicated that interest rates will stay high and raising rates at consecutive meetings is not off the table.

The S&P 500 finished marginally lower and the Dow slid 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.3 percent.