Asia stocks mixed: China ticks up as PBoC stays pat; Japan drops after strong CPI

Investing.com-- Asian stocks were mixed in Monday’s holiday-thinned session, as Chinese equities rose after the country’s central bank kept loan prime rates steady, while Japanese shares fell after stronger-than-expected inflation data from last week.

Stock markets in Australia, New Zealand, and Hong Kong were closed for the Easter holiday, contributing to lower trading volumes and subdued moves across the region.

Major U.S stock indexes suffered weekly losses last week, while futures tied to these benchmark indexes opened lower in Asian trading on Monday.

China stocks edge up, PBoC keeps loan prime rate unchanged

Data on Monday showed that the People’s Bank of China held its benchmark loan prime rate steady, in line with expectations, signaling Beijing’s preference for boosting economic growth through fiscal measures rather than additional monetary easing.

The PBOC left its one-year LPR at 3.1%, while the five-year LPR, which is used to set mortgage rates, was left at 3.6%. 

Chinese authorities have recently proposed additional measures to boost consumer spending, including enhanced social welfare programs and subsidies for household goods.

China’s Shanghai Composite edged 0.3% higher, while the Shanghai Shenzhen CSI 300 gained 0.2%.

Japan’s Nikkei drops after strong CPI print complicates BOJ rate path

Data on Friday last week showed that Japan’s core consumer price index (CPI), which excludes fresh food prices, grew 3.2% y-o-y, matching estimates, but above the 3.0% rise seen in February. 

A core reading that excludes both fresh food and energy prices also rose 2.9% in March from 2.6% in the prior month. 

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The reading is closely watched as a gauge of underlying inflation by the Bank of Japan, and it remained well above the central bank’s 2% annual CPI target.

Despite rising inflation, analysts moved their rate hike forecast from May to July, citing uncertainty around U.S. tariff policies.

Japan’s Nikkei 225 index fell 1.2% on Monday while TOPIX declined 1.1%.

Investors remain cautious around Trump tariffs

Investors were still cautious in light of the ongoing global economic uncertainty fueled by trade tariffs introduced by U.S. President Donald Trump.

Trump’s trade tensions with China remain elevated. Last week, Bloomberg reported that China was open to beginning trade talks with the Trump administration, but demanded that the White House show more respect.

U.S. President Donald Trump has also said “big progress” was made after a meeting with a Japanese trade delegation in Washington last week. 

These developments alleviated some concerns, although investors still remained on edge.

South Korea’s KOSPI was largely unchanged.

Thailand’s SET Index fell 0.4%, while Singapore’s Straits Times Index gained 1%.

Futures for India’s Nifty 50 were 0.4% higher.

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