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Asian shares higher on muted reaction to China CPI data

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Investing.com -

Investing.com - Asian shares moved higher Tuesday with China data on inflation seen tame, even though it was higher than the previous month, and regional bourses taking cues from Wall Street.

China CPI in May rose 2.5% year-on-year and PPI fell 1.4%.for May. The previous month saw at 1.8% rise for the CPI, and a 2.0% fall for PPI. Market watchers said the inflation in China was well within range and driven by a seasonal blip in pork prices and a low base comparison.

South Korea's KOSPI added 0.5% and Japan's Nikkei 225 was up less than 0.1% and the Hang Seng index added 0.39%.

Australia's S&P/ASX 200 added 0.5% as Sydney came back online after a public holiday on Monday, but with retailers down, including Pacific Brands Ltd (ASX:PBG), down 5.4% after it forecast that it earnings before interest and tax could be as much as 14% below earlier guidance. Also in Sydney, The Reject Shop Ltd (ASX:TRS) fell 10.9% after warning of a double-digit miss to net profit forecasts.

Overnight, U.S. stocks gained as investors continued to cheer news that the U.S. economy added more than 200,000 new nonfarm payrolls in May for a fourth consecutive month.

The Dow 30 rose 0.11%, the S&P 500 index rose 0.09%, while the NASDAQ Composite index rose 0.34%.

The U.S. Labor Department reported Friday that the economy added 217,000 in May, close to market expectations for a 218,000 increase, after a 282,000 rise in April, whose figure was revised down from a previously estimated 288,000 gain.

U.S. stocks also applauded for a second day the European Central Bank's decision to cut its benchmark interest rate on Thursday to a record-low 0.15% from 0.25%, cut its deposit rate to -0.1% and said it will support the banking sector to spur lending via targeted long-term credit injections.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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