Asian markets mixed on inflation figures

<p>New US inflation data boosted speculation of an interest rate hike.</p>

Asian markets were mixed today (February 27th) after US inflation data sparked speculation of an interest rate hike and Japan reported weaker retail sales. Signals of rising inflation were visible in many industries in the US, including shelter and personal care.

This has led traders to worry about when exactly the US central bank will start raising interest rates this year, although US Federal Reserve Chair said this week that the US central bank would be patient about raising them, as the job market is still healing.

"Given that inflation surprises have been negative around the world, anything above consensus is a sign for optimism and a sign for higher rates in the US," Deutsche Bank strategist Daniel Brehon told Bloomberg News.

Meanwhile, official data revealed Japanese inflation slowed for a sixth straight month in January, while retail spending fell 1.3 per cent month-on-month.

Japan's Nikkei 225 index rose 0.06 per cent to 18,797.94 and the Shanghai Composite Index added 0.1 per cent 3,300.19. Hong Kong's Hang Seng was down 0.32 per cent at 24,823.29 and Seoul's Kospi shed 0.1 per cent to 1,985.80. 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.