Wholesale prices fell 5.9% over the same period as expected, the weakest pace in six years.
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CHINA DATA: Data showed Chinese inflation eased in September, stoking expectations that Beijing would have more leeway for interest rate cuts or other stimulus to prop up slowing economic growth. Customs data Tuesday showed Chinese purchases of foreign goods worsened from August’s 5.5 percent decline, evidence of anemic demand despite repeated stimulus efforts aimed at reversing a decline in economic growth. China’s Shanghai composite index finished 0.2 percent higher at 3,293.23 after trading lower, while Hong Kong’s Hang Seng index shed 0.6 percent to 22,600.46.
The sharp fall in imports posted on Tuesday raised concerns around the world that domestic demand was weakening in China, the world’s second largest economy.
“We should be wary of the possibility that the rally in risk assets driven by easing expectations of a Fed rate hike will run out of steam”, he added.
Most of the advance came after a disappointing jobs report which suggested the Federal Reserve could postpone a long-anticipated interest rate rise for several months.
The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen stock markets rose 3.2 percent, while the Shanghai Composite Index .SSEC gained 3.3 percent.
“China remains a source of market debate, the bears see a hard landing as inevitable, the bulls continue to see bright spots here and there, and have an unrelenting belief that the PBOC will be the shining white knight riding in with a rate slashing sword to save the day”, Lucas wrote in a note to clients on Wednesday.
New Zealand’s dollar dropped 0.4 per cent from near its strongest level since July 14, while the Aussie weakened 0.6 per cent to 73.21 U.S. cents.
The widely-tracked VIX index, a volatility gauge of investor nervousness, was at its lowest since late August, a sign that optimism was returning to the markets after a tumultuous summer in which major indexes lost more than a quarter of their value.
In currencies, the euro rose 0.2% against the dollar to $1.1410, while the dollar was 0.2% lower against the yen at Yen119.49.
“Chances of the China stock market stabilising are high”, said Yeh, who oversees about $US41 million in the fund. The money manager is rebuilding his holdings of Chinese technology companies after they turned from bull-market leaders into the biggest losers of the subsequent crash.
Japan’s Nikkei 225 slid 1.9 percent to 17,891.58 and South Korea’s Kospi dropped 0.5 percent to 2,008.96.
United States benchmark West Texas Intermediate was down 0.04 per cent at US$46.64 and Brent climbed 0.18 per cent to US$49.15 after taking a hit in late on Tuesday trade.
China’s trading and inflation data, to be released this week, may affect market sentiment, while initial public offerings could absorb a few capital from the stock market too, Yip said.
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The CSI 300 Index slipped 0.1 per cent.
