Asian markets down as data shows China trade weak

A woman walks past a man examining an electronic board showing Japan’s Nikkei average and stock quotations outside a brokerage, in Tokyo, Japan, March 20, 2023. REUTERS/Androniki Christodoulou/File Photo
SYDNEY, Aug 8 (Reuters) – Asian share markets were mostly weaker on Tuesday as investors digested weaker Chinese trade data ahead of key inflation readings from China and the United States to deliver an updated outlook on the health of the global economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.7% on Tuesday, after U.S. stocks ended the previous session with mild gains. The index is down 2.9% so far this month.
The yield on benchmark 10-year Treasury notes rose to 4.0885% compared with its U.S. close of 4.078% on Monday. The two-year yield , which rises with traders’ expectations of higher Federal Reserve fund rates, touched 4.7682% compared with a U.S. close of 4.758%.
Data showed China’s imports contracted at 12.4% in July, missing forecasts for a drop of 5%, while exports fell 14.5%, compared with a fall of 12.5% tipped by economists.
Hong Kong’s Hang Seng Index (.HSI) started to recover some ground lost earlier in the day, but was still down 1.26% after opening 1.73% in the red.
Sentiment rebounded in China as the blue chip CSI300 index (.CSI300) turned positive to be up 0.07% after initially losing 0.54%.
Australian shares (.AXJO) were up 0.15%, while Japan’s Nikkei stock index (.N225) rose 0.29% after early trading up by nearly 0.8%.
The mixed day in Asia follows a stronger night in U.S. markets.
On Wall Street, the Dow Jones Industrial Average (.DJI) rose 1.16%, the S&P 500 (.SPX) gained 0.90% and the Nasdaq Composite (.IXIC) added 0.61%.
Global investors are keenly awaiting inflation readings from China on Wednesday and the U.S. on Thursday, expecting them to show stark differences in price movement in the world’s two biggest economies.
U.S. inflation likely accelerated slightly in July to an annual 3.3%, while the core rate was likely unchanged at 4.8%, according to a Reuters poll of economists. ANZ predicts China’s July consumer price index to come in at minus 0.4% year-on-year.