Asian shares inched higher on Tuesday, July 10, 2023, as the dollar rally paused. China’s disinflation negatively impacted market sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan increased by 0.25% at 0630 GMT. The index was set to finish the month down approximately 6%.
Japan’s Nikkei experienced a 0.44% rise, while Australia’s S&P/ASX 200 index gained 0.51%. The dollar index, measuring the greenback against major currencies, declined by 0.1%. It had reached a two-decade high the previous week.
China’s consumer price index (CPI) increased by 2.4% in June from a year ago. This growth fell short of expectations of a 2.5% rise, marking the slowest pace in 23 months. Core CPI, excluding food and energy prices, rose by 0.9%. This figure also fell below expectations of a 1% increase. The disinflation data had a negative impact on Chinese markets. The CSI300 index of leading shares declined by 0.3%.
However, other Asian markets saw mostly positive movement. Hong Kong’s Hang Seng index rose by 0.7% and South Korea’s Kospi increased by 0.2%. Investors were eagerly awaiting the release of U.S. jobs data on Friday. This data would serve as a key indicator of the American economy’s strength.
