Asian stocks fell today (September 10th), putting an end to yesterday's global rally, after the release of weak Chinese and Japanese economic data.
China's consumer inflation was up two per cent August compared to a year earlier, while producer prices fell for the 42nd consecutive month, fuelling worries about deflation.
The producer price index (PPI) declined 5.9 per cent after a 5.4 per cent decline in the previous month.
In addition, Japan's core machinery orders fell 3.6 per cent in July from a month earlier, missing expectations for a rise of 3.7 per cent, which is putting pressure on the Bank of Japan (BOJ) to launch fresh stimulus measures.
"The Bank of Japan may ease policy further in October, but additional easing would not be enough to achieve its inflation target," Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo, told Reuters.
Japan's Nikkei lost 2.5 per cent to 18,299.62, China's Shanghai Composite index closed down 1.5 per cent to 3,196.22 and Australia's S&P ASX 200 lost 2.4 per cent to 5095.02. South Korea's Kospi index gained 1.4 per cent to 1,962.11 and Hong Kong's Hang Seng Index was down 2.5 per cent 21,562.50.
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