Investing.com – Most Asian shares traded flat to low on Thursday, amid a lack of immediate trade signals and markets expecting more comments from Federal Reserve officials and key U.S. inflation data in the coming days.
Chinese markets were among the few to rise on the day, extending gains after data showed a stronger-than-expected rise in Chinese imports in April, reflecting some strengthening in local demand.
Regional markets showed little reaction to the mid-hour close on Wall Street as several Fed officials warned interest rates would remain high for a long time. US stock index futures remained unchanged in Asian trading.
Chinese shares continue to rise amid rising imports
China and index stocks rose about 0.9% each on Thursday, extending intraday gains and remaining close to six- to seven-month highs.
Rising mainland Chinese stocks also helped lift Hong Kong’s index, which rose 1.2%. Investors have also been seen pouring funds into Hong Kong and Chinese technology stocks.
Trade data on Thursday showed China’s economy grew significantly better than expected in April, raising some hopes of improving domestic demand.
Although import growth was larger than expected, the sharp rise in imports in April fell short of China’s expectations. However, stronger import data increased optimism about the potential recovery of the Chinese economy, which has also been a key driver of the recent rally in Chinese stocks.
The situation was mixed in broader Asian markets. Japan’s index rose 0.3% amid weak March performance, fueling expectations that the Bank of Japan will have limited room to tighten monetary policy.
remove advertising
.
The Nikkei also shrugged off losses in Toyota Motor (TYO:) (NYSE:), which fell 0.7% amid disappointing earnings guidance for the current fiscal year, despite the company posting stellar earnings for fiscal 2024.
Shares of SoftBank Group Corp. (TYO:) fell 1.7% after its UK chip unit Hand Holdings (NASDAQ:) provided a disappointing full-year profit forecast, indicating that demand for artificial intelligence may not be as strong as originally expected.
Australian shares fell 0.7% as heavyweight mining stocks were hit by falling commodity prices. South Korean shares lost 0.3%, while Indian index futures posted a largely muted opening amid continued uncertainty over India’s 2024 general election.
Fed speakers, US inflation data is ready
More Fed officials are due to speak later on Thursday and Friday, after several officials warned earlier in the week that U.S. rates were likely to remain high for a long time.
is set to perform later on Thursday and will perform on Friday.
In addition to speeches from Fed officials, key data for April will be published next week. Greater understanding of US rates is likely to drive stock market movements.