Asian shares mostly lower, China inflation eases

A man walks past an electronic board of a local bank showing the Hong Kong share index in Hong Kong Wednesday, Sept. 10, 2014. Asian shares mostly fell Thursday, Sept. 11, as China released data showing inflation remained tepid in August while the dollar broke the 107 yen barrier for the first time in six years. AP PHOTO/VINCENT YU

HONG KONG–Asian shares mostly fell Thursday as China released data showing inflation remained tepid in August while the dollar broke the 107 yen barrier for the first time in six years.

The pound rallied on easing concerns about Scotland’s independence vote and hawkish comments from the governor of the Bank of England on interest rates.

Tokyo climbed 0.76 percent, or 120.42 points, to finish at an eight-month high of 15,909.20. However, Sydney fell 0.51 percent, or 28.18 points, to 5,546.1 and Seoul, which was closed from Monday to Wednesday for a public holiday, eased 0.74 percent, or 15.25 points, to 2,034.16.

Shanghai ended 0.29 percent lower, giving up 6.63 points to 2,311.68 while Hong Kong slipped 0.17 percent, or 42.72 points, to 24,662.64.

China said inflation hit 2.0 percent in August, a four-month low and well below the government’s 3.5 percent annual target. It also missed the median estimate of 2.2 percent in a survey of 15 economists by the Wall Street Journal.

The figures come at a time of concern over China’s economy as the effects of steps taken earlier this year to prop up slowing growth have waned and worries intensify over the potential for a bust in the property sector.

The losses came despite a healthy lead from Wall Street.

The Dow added 0.32 percent and the S&P 500 tacked on 0.36 percent, while the Nasdaq rose 0.75 percent.

The positive outlook helped the dollar push above the 107 yen mark briefly, levels it has not seen since September 2008 during the financial crisis.

Pound recovers from 10-month low

In afternoon Tokyo trade the dollar eased slightly and stood at 106.90 yen, from 106.85 yen in New York.

The euro bought $1.2929 and 138.23 yen, compared with $1.2916 and 138.02 yen in New York.

The pound was looking healthier on Thursday, buying $1.6240, well up from the 10-month low of $1.6078 touched earlier this week.

The unit sank in response to an opinion poll on the upcoming Scottish independence referendum showing for the first time a majority of people in favor of leaving the United Kingdom.

However, a new survey showed the “No” to independence campaign had restored its lead, soothing concerns about the economic impact of Britain fragmenting.

Also lending support were comments from Bank of England chief Mark Carney suggesting it could hike interest rates as soon as early 2015, citing the country’s solid economic recovery.

“You can expect interest rates to begin to increase,” Carney said, adding that the bank’s forecasts show that hiking rates by the spring of 2015 would allow it to meet its jobs growth and inflation targets.

On oil markets, US benchmark West Texas Intermediate for October delivery eased 24 cents to $91.43 while Brent crude for October fell 40 cents to $97.64 in afternoon trade.

Gold was at $1,241.02 an ounce, against $1,253.47 late Wednesday.

In other markets:

— Singapore closed up 0.26 percent, or 8.65 points, to 3,347.28.

Oil rig maker Keppel Corp. eased 0.28 percent to Sg$10.78 while vehicle distributor Jardine Cycle & Carriage rose 0.16 percent to Sg$43.75.

— Bangkok fell 0.08 percent, or 1.26 points, to 1,580.87.

Telecoms company True Corporation gained 4.17 percent to 12.50 baht, while Airports of Thailand added 2.58 percent to 239 baht.

— Kuala Lumpur lost 4.74 points, or 0.25 percent, to 1,866.11.

Telekom Malaysia fell 0.3 percent to 6.39 ringgit, while Public Bank shed 0.3 percent to 19.12. Budget carrier AirAsia gained 1.2 percent to 2.55 ringgit.

— Jakarta slipped 0.19 percent, or 9.96 points, to 5,133.03.

Miner Aneka Tambang shed 0.87 percent to 1,140 rupiah, while Bank Negara Indonesia advanced 2.65 percent to 5,800 rupiah.

— Wellington rose 0.49 percent, or 25.67 points, to 5,262.32.

Chorus ended up 0.85 percent at NZ$1.785 and Contact Energy added 1.42 percent to NZ$5.73.

— Taipei fell 0.37 percent, or 34.66 points, to 9,322.95.

Taiwan Semiconductor Manufacturing Co. was unchanged at Tw$125.0 while Hon Hai Precision Industry was 0.99 percent lower at Tw$100.0.

— Manila closed 0.15 percent lower, giving up 10.72 points to 7,202.06.

Philippine Long Distance Telephone dropped 1.18 percent to 3,338.00 pesos, Ayala Corp. eased 0.21 percent to 706.00 pesos and DMCI Holdings retreated 0.99 percent to 80 pesos.

— Mumbai shed 0.23 percent, or 61.54 points, to end at 26,995.87.

Motherson Sumi Systems climbed 9.30 percent to 438.90 rupees, while NHPC lost 4.91 percent to 21.30 rupees.