HONG KONG ? Lingering fears China may introduce new credit-tightening after higher-than-expected inflation data were offset Friday by calls from Japan's premier for a weaker yen, leaving Asian stocks mixed.

Shanghai fell 0.52 percent in early trade after figures showed Thursday that China's inflation rate continued to accelerate at a time when the government is trying to cool the fast-expanding economy.

Beijing announced that the consumer price index, the main gauge of inflation, rose 2.7 percent year on year in February, well up from the 1.5 percent recorded in January and higher than a forecast 2.4 percent rise.

Although officials insisted the increase was in line with the three percent target for 2010 put forward by Premier Wen Jiabao last week many investors fear Beijing will extend measures to keep a lid on growth.

The government has already ordered banks to increase their capital reserves three times since December ? effectively limiting the amount of money they can lend.

Hong Kong, Seoul and Singapore were flat.

Many regional investors look to the Chinese economy for indicators as many countries rely on its voracious appetite for everything from commodities to electronics to boost their exports.

Tokyo was up 0.41 percent by the break after Premier Yukio Hatoyama on Friday made rare comments that action should be taken to weaken the yen, which would help key exporters as the country struggles to recover from recession.

He said the current high value of the yen gave a misleading impression of the world's second-largest economy, adding: "Japan's economy and industries aren't necessarily strong," in comments cited by Dow Jones Newswires.

His comments come as the government ups pressure on the central bank to take more action to shore up the economy and combat deflation.

The market will now focus on a Bank of Japan meeting next week that could herald further moves to boost the economy, dealers said.

In morning trade the dollar firmed to 90.58 yen in Tokyo from 90.48 in New York late Thursday and the euro was higher at 123.84 yen from 123.77.

The yen surged to 14-year highs against the dollar in November. A strong yen hurts the competitiveness of Japanese exporters when their overseas earnings are repatriated.

Sydney firmed 0.14 percent. Earlier data showed Australian exports of iron ore and coal hit record levels in the final quarter of last year on strong demand from Asia.

Oil was slightly higher, with New York's main contract, light sweet crude for April delivery, rising 12 cents to $82.23 while Brent North Sea crude gained one cent to $80.29.

Gold opened at $1,109.00-1,110.00 an ounce in Hong Kong, up from Thursday's close of $1,107.00-1,108.00.