Asian Equities Mixed on Final Trading Day for China Before Holiday – Asia Market Wrap

Asian stocks were mixed, with mainland Chinese shares fluctuating on the final trading day before the Lunar New Year vacations. Treasuries pushed higher.

After the midday break, China’s CSI 300 Index swung between gains and losses, while the Shanghai Stock Exchange Composite Index pared its advance. The benchmarks had risen in early trading after the nation replaced the head of its securities regulator on Wednesday, a surprise move that may foreshadow more aggressive steps to support the stock market.

The gains were brief after statistics revealed China’s consumer prices plummeted last month at the highest rate since the global financial crisis, as the economy fights to shrug off persistent deflation pressures. Hong Kong shares fell.

A gauge of the region’s equities slid into the red after Chinese equities lost momentum. Benchmarks in Australia and South Korea bucked the trends, while those in Japan rose after the yen weakened following comments from Shinichi Uchida, a deputy governor of the Bank of Japan, who said it was difficult to see the bank raising its policy rate continuously and rapidly even after the negative interest rate is ended.

US futures were barely changed as the S&P 500 finished at a new high. The gauge moved within striking distance of 5,000 index points as traders wagered that a strong economy will continue to fuel corporate earnings. Contracts for European markets indicated a higher open.