Asian stock markets surge on Chinese data

Asia-Pacific markets were mixed ahead of key inflation reports this week, including the U.S. consumer price index on Wednesday and producer price index on Thursday. In the region, China’s consumer price index was flat on an annual basis in June, hitting its lowest level since February 2021. Meanwhile, producer prices fell 5.4 percent annually, the fastest pace of decline since December 2015. U.S. Treasury Secretary Janet Yellen ended a visit to Beijing, saying talks were “straightforward” and “productive” and put bilateral ties on “a more solid footing.” Japan’s Nikkei 225 extended losses, shedding 0.87 percent after falling more than 1 percent on Friday, and the Topix lost 0.61 percent. South Korea’s Kospi rose 0.26 percent, while the Kosdaq lost 0.33 percent. Australia’s S&P/ASX 200 rose 0.15 percent. Hong Kong’s Hang Seng index rebounded, rising 1.57 percent, while mainland Chinese markets also rose. The Shanghai Composite Index rose 0.38 percent and the Shenzhen Component Index rose 0.56 percent on Monday. U.S. markets closed lower on Friday, with all three major indexes falling on fears the Federal Reserve will raise interest rates this month. The Labor Department’s June jobs report showed payrolls rose less than expected. Nonfarm payrolls rose by 209,000, while the unemployment rate was 3.6 percent. The Dow Jones Industrial Average lost the most, down 0.55 percent, while the S&P 500 lost 0.29 percent and the Nasdaq Composite lost 0.13 percent.