Asian Shares Mixed As Investors Assess Chinese Inflation Data

(RTTNews) - Asian stocks ended mixed on Wednesday as softer-than-expected U.S. retail sales data and growing unease over AI prompted traders to book some profits after recent gains. China's headline inflation readings for January 2026 underscored still-weak household demand and reinforced expectations of continued monetary support.

The dollar slipped and gold traded higher above $5,060 an ounce even as comments from some Federal Reserve officials dampened hopes for interest rate cuts.

Oil ticked higher as supply risks stemming from tensions in the Middle East outweighed industry data showing a big rise in stockpiles.

Japanese markets were closed for the National Founding Day. China's Shanghai Composite index finished little changed at 4,131.98 as deflation worries lingered.

China's annual consumer price inflation unexpectedly cooled from 0.8 percent in December to 0.2 percent in January, raising fresh concerns about persistent deflationary pressures in the world's second-largest economy.

The deflation in producer price inflation persisted, with prices falling 1.4 percent year-on-year in January after declining 1.9 percent in December. Hong Kong's Hang Seng index edged up by 0.31 percent to 27,266.38.

Seoul stocks ended higher for a third consecutive session, with automakers and financials leading the surge. The Kospi average surged 1 percent to close at 5,354.49.

Hyundai Motor soared 5.9 percent and its affiliate Kia Corp jumped 4.6 percent amid expectations for the robotics sector.

Australian markets rallied to hit a three-month high, led by banking ad gold mining stocks. The benchmark S&P/ASX 200 surged 1.66 percent to 9,014.80, while the broader All Ordinaries index settled 1.55 percent higher at 9,281.80.

Commonwealth Bank of Australia shares climbed 6.8 percent after the country's largest bank clocked record-high cash earnings in the half year to December, buoyed by growth in its flagship mortgage business.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 13,507.28.

Overnight, U.S. stocks ended mixed after two days of gains. The Dow inched up 0.1 percent, but the S&P 500 dipped 0.3 percent and the tech-heavy Nasdaq Composite shed 0.6 percent as data showed U.S. retail sales unexpectedly stalled in December and household debt rose to a new record high in Q4 2025.

Financial services stocks tanked after tech platform Altruist introduced a new AI-powered tax planning tool for wealth advisors and clients.

Traders also reacted to comments from Federal Reserve Bank of Cleveland President Beth Hammack that interest rates could be on an extended hold.

Her Dallas counterpart Lorie Logan said she believes the Federal Reserve's interest-rate stance is set well for the risks facing the economy.