HONG KONG ? Chinese inflation data showing a sharp jump in prices put investors in a cautious mood Wednesday while contrasting economic figures from the US and Japan left Asian stocks mixed.

The anticipated report from Beijing showed consumer prices rose for the fourth straight month in February, leading to fears that the government will introduce monetary tightening measures.

Chinese shares were 0.27 percent down as dealers digested the news, while Hong Kong dropped 0.43 percent.

China's National Bureau of Statistics said Thursday that the consumer price index, the main gauge of inflation, rose 2.7 percent year on year last month, much faster than the 1.5 percent rise recorded in January.

Data also showed new lending slowed to 700.1 billion yuan ($102 billion) in February, from the previous month's 1.39 trillion yuan as Beijing tries to restrict liquidity in a bid to put the brakes on the red hot economy.

The figures have caused concern there will be further restrictions.

"While we continue to believe that policy normalization/tightening should be gradual and measured this year, another reserve requirement ratio hike is likely imminent," Morgan Stanley analyst Wang Qing told Dow Jones Newswires.

China has taken steps to calm inflationary pressures by ordering banks to increase their capital reserves three times since December ? effectively limiting the amount of money they can lend.

And Qian Qimin from Shenyin Wanguo Securities said: "The tightening concerns are still lingering."

Tokyo rose 0.89 percent in the morning despite the government's announcing before the opening bell that the economy grew 0.9 percent in October-December from the previous quarter, down from an initial estimate of 1.1 percent.

Exporters were the main winner, getting a boost from a weaker yen in New York trade on Wednesday. Sony advanced 2.7 percent to 3,465 yen and Honda rose 1.1 percent to 3,280 yen.

The dollar had jumped to 90.49 yen in New York late Wednesday from 89.96. However, it had retreated slightly in Asia to 90.28.

The euro declined to 123.12 yen from 123.60 to $1.3644 from 1.3657.

Markets were given a slight lift from US data indicating a stronger recovery in the world's biggest economy. Washington said Wednesday that wholesale inventories unexpectedly fell 0.2 percent in January. Analysts had expected inventories to rise 0.2 percent.

The report also said that sales by US wholesalers in the first month of 2010 rose 1.3 percent to a seasonally adjusted $346.7 billion.

Meanwhile, Sydney was flat, while Seoul was 0.10 percent lower after South Korea's central bank held the key interest rate at a record low 2.0 percent for a 13th straight month.

The Reserve Bank of New Zealand earlier kept its rate unchanged, but signalled the first rise was likely around the middle of the year. Thailand kept its rates steady Wednesday citing political uncertainty. Wellington was also flat.

Investors were waiting for a central bank meeting in the Philippines later Thursday.

Gold opened lower at $1,111.00-1,112.00 an ounce in Hong Kong, from Wedesday's close of $1,122.00-1,123.00.