Asian stocks mixed ahead of US inflation data

SINGAPORE (AP) — Asian stocks were mixed Wednesday ahead of U.S. inflation data offering a glimpse at how the world’s largest economy is recovering.

The Nikkei 225 in Tokyo rose 0.7% to 28,070.51 and the Shanghai Composite Index added 0.1% to 3,532.93. The Kospi in Seoul, however, gave up 0.8% to 3,217.65.

Hong Kong's Hang Seng fell under 0.1% to 26,599.13 in afternoon trading. Sydney's S&P-ASX 200 advanced 0.3% to 7,584.30.

The benchmark in Malaysia rose but those in India, Singapore and Indonesia fell.

Analysts are expecting the latest U.S. headline inflation rate, due Wednesday, to grow at a slower pace of 5.3% in July from a year earlier. This is slightly lower than June's 5.4%.

“A higher-than-expected reading may suggest inflation being more persistent and increase the risk of an earlier tapering timeline from the Fed,” said Jun Rong Yeap of IG.

Where the price increases lie matters, too. While the previous highlights were air travel fares and used cars, the larger determinant for inflation may be food and housing.

Traders will watch for the continued growth of food and housing prices, Yeap said.

They are also contending with the coronavirus delta variant's spread in Asia, which has resulted in travel restrictions being reimposed in China. Parts of Japan, including Tokyo, the capital, remain under a state of emergency.

Over on Wall Street on Tuesday, financial and industrial companies helped lift the market, amid a pullback in technology stocks.

The S&P 500 recovered from an early slip and added 0.1% to 4,436.75. The Dow Jones Industrial Average rose 0.5% to 35,264.67. The tech-heavy Nasdaq slipped 0.5% to 14,788.09.

Banks made some of the strongest gains as bond yields edged higher. Banks benefit from higher yields, which allow them to charge higher...