Asian shares mixed as China reports so-so economic data

BANGKOK (AP) — Shares were mixed in Asia on Monday as China reported a variety of data that painted a complicated picture of its recovery from the pandemic.

Benchmarks rose in Hong Kong and Tokyo but fell in Shanghai and South Korea.

The passage of a $1.9 trillion aid package for the U.S. economy has added to investor confidence that the U.S. and global economy will likely experience a strong recovery from the pandemic in the second half of the year but also potentially increase the rate of inflation.

China has led the global recovery, reopening earlier than other countries from coronavirus shut-downs that emerged in the central city of Wuhan in early 2020.

Retail sales jumped nearly 36% year-on-year in January-February from a year earlier. But the surge was mostly driven by strong demand for cars, catering and jewelry, suggesting Chinese consumers were splashing out during the Lunar New Year, ING economists said in a report.

The data were exaggerated by low base effects from the shutdowns last year, they said.

Meanwhile, the jobless rate rose to 5.5% from 5.2% a year earlier, possibly affected by flare ups of coronavirus in some areas, analysts said.

“Travel restrictions weighed on retail sales but boosted industrial output and investment. We think activity will remain strong during the first half of this year, before giving way to a weaker second half," Julian Evans-Pritchard of Capital Economics said in a commentary.

“Domestic policy support is being gradually withdrawn. And foreign demand for Chinese goods will drop back as vaccines start to reverse the recent shift in global consumption patterns," he said.

The Shanghai Composite index fell 0.6% to 3,432.01. Tokyo's Nikkei 225 index edged less than 0.1% higher, to 29,732.98, and the Hang Seng in Hong Kong...