Chinese shares slide as deflation pressure deepens

Most Asian stocks fell on Thursday as investors reacted to U.S. President-elect Donald Trump's tariff threats, a buoyant dollar and disappointing Chinese inflation data.

The U.S. dollar was underpinned by rising Treasury yields amid expectations that Trump's fiscal and tariff policies may add to price pressures and keep U.S. interest rates higher for longer.

Gold ticked higher in Asian trade after hitting a near four-week high in the previous session.

After Wednesday's private employment data painted a weaker picture of the economy, the focus has now shifted the U.S. nonfarm payrolls report due on Friday that may provide greater clarity on the Federal Reserve's interest rate path for 2025.

 

Oil edged up slightly after falling more than 1 percent on Wednesday.

China's Shanghai Composite index dipped 0.58 percent to 3,211.39 as the latest inflation data pointed to persistent deflationary pressures in the world's second-largest economy. Hong Kong's Hang Seng index eased 0.20 percent to 19,240.89.

China's consumer price inflation softened further in December and producer prices declined for 27 consecutive months despite Beijing initiating stimulus measures to revive domestic demand.

Consumer prices grew only 0.1 percent on a yearly basis in December, slower than the 0.2 percent increase seen in November, figures from the National Bureau of Statistics revealed on Thursday. Data showed that producer prices extended its decline for 27 straight months in December.

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