Asian markets mixed after U.S. inflation data; European markets seen to open flat

Asian markets trading mixed in Wednesday trade after seeing profit booking in the region as US stocks traded lower.

In Japan, the Nikkei 225 slipped 0.23% while the Topix index on the flatline. The Kospi in South Korea dipped 0.23%, the Shanghai Composite in mainland China declined 0.61% while the Shenzhen component fell marginally.

Hong Kong’s Hang Seng index shed 0.52%, while, Australia’s S&P/ASX 200 edged 0.39% higher. The Straits Times index in Singapore shed 0.18% in Wednesday trade.

US markets finished lower as a higher than expected jump in CPI print for June weighed on investors’ sentiments. CPI for June stood at 5.4%, which is the highest since 2008 and higher than consensus forecast of 4.9%.

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.

Federal Reserve has been treating higher inflation as transitory and short-lived so far. Therefore, considering high inflation for June, investors would be keenly watching out semi-annual testimony from Federal Reserve Chairman Powell beginning today. 10-Year USA treasury yield hardened over 5 bps to 1.42% due to higher CPI. However, JP Morgan and Goldman Sachs reported June quarter performance and both companies exceeded consensus earnings forecast. Powell’s testimony today will in focus.

European stocks are expected to open on a flat note with euro zone industrial production data for May is published and the Netherlands, Sweden and U.K. release June inflation data.

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( With inputs from indiainfoline)