Stocks in Asia Pacific were lower in Tuesday morning trade, as Chinese inflation data for April missed expectations.
Hong Kong’s Hang Seng index led losses among the region’s major markets as it fell 1.84% in early trade. Mainland Chinese stocks also dipped, with the Shanghai composite down 0.3% while the Shenzhen composite shed 0.348%.
Meanwhile, the S&P/ASX 200 in Australia fell 1.42%.
Overall, the MSCI Asia ex-Japan index traded 1.26% lower.
“It’s hard to see equities powering further higher,” Rob Carnell, chief economist and head of research for Asia-Pacific at ING, told CNBC’s “Squawk Box” on Tuesday. He said much of the boost that the markets had gotten was attributable to the “extraordinary accomodative monetary policies and fiscal policies that governments around the world … have been throwing at their ecoomies.”
“Surely we’ve had just about all we’re gonna get of those,” Carnell said. “Any further dollops of stimulus are gonna be fairly marginal.”
On the economic data front, China’s inflation for April released by the country’s National Bureau of Statistics missed expectations. The consumer price index for April rose 3.3% year-on-year, versus expectations of a 3.7% increase in a Reuters poll. Meanwhile, China’s producer price index for April declined 3.1% year-on-year, as compared to a 2.6% fall expected in a Reuters poll.
Overnight stateside, the Nasdaq Composite saw its sixth straight day of gains, rising 0.78% to close at about 9,192.34. The S&P 500 ended its trading day largely flat at 2,930.32 while the Dow Jones Industrial Average fell 109.33 points to close at 24,221.99.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 100.359 after rising from levels below 100 seen yesterday.