Asia Pacific stock markets were mixed on Wednesday (27/7/2022), ahead of the Australian inflation report and investors awaiting policy decisions by the United States (US) central bank or the Federal Reserve (the Fed).
Japan's Nikkei 225 index slipped 0.13 percent, while the Topix index fell 0.19 percent. The Hang Seng Index was down about 1 percent in early trade, and the Hang Seng technology index was down 1.19 percent. Alibaba shares fell 3.64 percent after rising in trading Tuesday, July 26, 2022.
The stock market slumped. The Shanghai index slid 0.29 percent and the Shenzhen index slid 0.39 percent. In Australia, the S&P/ASX 200 is moving lower.
South Korea's Kospi Index fell 0.56 percent, and the Kosdaq rose 0.53 percent. MSCI's index of Asia Pacific shares outside Japan fell 0.72 percent.
Australian inflation data rose 6.1 percent in the second quarter compared to the same period the previous year, and rose from 5.1 percent in the first quarter of 2022. The inflation realization was lower than the economic prediction of 6.2 percent.
ANZ Research in a note Wednesday said it saw headline inflation rising to 6.6 percent from a year ago.
"We think the risks are more balanced for this stronger forecast given the ongoing upside inflation shock globally," the note said.
CPI in the US and UK both came in above expectations this month. Economist Kristina Clifton, at Commonwealth Bank of Australia, wrote in a note reading CPI Down Under could influence market expectations for future rate hikes.
"We expect that any impact on the AUD from today's CPI will be short-lived as the darkening global outlook will put a bigger burden on the AUD," he wrote.