Asian markets mostly down ahead of China data

Asian markets were mostly down yesterday with traders booking profits after another strong rally in the previous session, while they are also awaiting the release of Chinese economic indicators.

Tokyo’s Nikkei suffered a deep correction after storming almost four percent to its highest level since September 2008 as the yen reclaimed some of its losses in recent days.

Tokyo fell 0.93 percent, or 106.68 points, to 11,357.07 and Seoul slipped 0.23 percent, or 4.42 points, to 1,931.77.

Sydney rose 0.30 percent, or 14.7 points, to 4,935.7, Hong Kong fell 0.34 percent, or 79.93 points to 23,177.00, and Shanghai closed down 0.66 percent or 15.95 to 2,418.53.

Traders opted out of big risks ahead of the latest numbers from China due to be released on Friday before the country shuts up shop for the Lunar New Year holiday.

Beijing will unveil data on trade and inflation that will provide a clearer idea of the state of the world's number two economy after a string up upbeat figures indicated it has emerged from a severe slowdown.

“After gyrating quite aggressively over the past couple of weeks, markets are taking pause ahead of the Chinese (inflation) data,” said Matthew Sherwood, head of investment market research at Perpetual Investments in Sydney.

“In essence, we are probably stuck in a bit of a trading zone after we had such a strong rally in January,” he told Dow Jones Newswires.

Eyes were also on a European Central Bank meeting later Thursday that is expected to keep monetary policy on hold. Analysts said ECB board members would not undertake any more loosening despite worries about slow growth and the strengthening euro. I(

AFP)