Asia-Pacific stocks mostly fall after hotter-than-expected U.S. inflation report

SINGAPORE — Shares in Asia-Pacific mostly slipped in Wednesday morning trade following a hotter-than-expected U.S. inflation report for June overnight.

The Shanghai composite in mainland China declined 0.61% while the Shenzhen component fell 0.55%. Hong Kong’s Hang Seng index shed 0.52%.

In Japan, the Nikkei 225 slipped 0.14% while the Topix index sat above the flatline. The Kospi in South Korea dipped 0.26%.

Meanwhile, Australia’s S&P/ASX 200 edged 0.37% higher.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.19%.

In other developments, Singapore’s economy grew 14.3% year-on-year in the second quarter, official advanced estimates showed Wednesday. It was slightly above economist expectations for a 14.2% year-on-year jump, according to a Reuters poll.

Still, the economy contracted by 2% as compared with the previous quarter, Singapore’s Ministry of Trade and Industry said.

The Straits Times index in Singapore was about 0.2% higher in Wednesday morning trade.

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Overnight on Wall Street, the Dow Jones Industrial Average declined 107.39 points to 34,888.79 while the S&P 500 slipped 0.35% to 4,369.21. The Nasdaq Composite dipped 0.38% to 14,677.65.

The losses stateside came after the U.S. Labor Department reported Tuesday that in June inflation surged at its fastest pace in nearly 13 years. Consumer prices increase 5.4% in June as compared with a year earlier — the largest monthly gain since August 2008.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.755 after a recent rise from below 92.4.

The Japanese yen traded at 110.47 per dollar, weaker than levels around 110 against the greenback seen earlier in the week. The Australian dollar changed hands at $0.745, lower than levels around $0.75 seen yesterday.

Oil prices fell in the morning of Asia trading hours, with international benchmark Brent crude futures slipping 0.07% to $76.44 per barrel. U.S. crude futures shed 0.12% to $75.16 per barrel.

(With Inputs from CNBC)

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