Chinese stocks lost ground at the regional level after the release of data, with the Shanghai composite falling 1.19% while the Shenzhen component falling 2.158%. Hong Kong’s Hang Seng Index fell 2.21%. Shares of Chinese electric vehicle maker Nio, listed in Hong Kong, fell more than 7% after the announcement of production disruptions to supply chain partners as a result of Covid. The most notable fact is the large gap between the CPI and the CPI, and this shows that the pricing power between most companies in China is weak and they are hit by profit margins. Ramiz Chelat Portfolio Manager, Vontobel Asset Management China’s producer inflation in March was higher than expected. Producer price index rose 8.3% year-on-year, according to official data on Monday, above expectations for a 7.9% rise in a Reuters poll. Chinese consumer inflation also rose more than expected in March, with the consumer price index rising 1.5% year-on-year. That was above expectations in a Reuters poll for a 1.2% increase. The data release comes as mainland China struggles to control the worst Covid wave since the pandemic began in early 2020.
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“I think the most notable thing is the large gap between the CPI and the CPI, and that shows that the pricing power between most companies in China is weak and they are being hit by the margins,” said Ramiz Chelat, portfolio manager at Vontobel Asset Management. he told CNBC’s “Street Signs Asia” on Monday. “Given Omicron’s infectivity, we could see more local lockdowns being a recurring issue,” he said. “We believe that you should be very selective in China, looking for companies that can offer in an environment with growth challenges.” Elsewhere, the Nikkei 225 in Japan fell 0.55% while the Topix index fell 0.48%. South Korea’s Kospi fell 0.26%. The Australian S & P / ASX 200 declined the overall trend at the regional level as it rose 0.14%. MSCI Asia’s broader Asia-Pacific stock index traded 1.09% lower outside Japan.
Oil falls 2%
Oil prices were lower in the morning trading hours in Asia, with international Brent crude futures falling 2.31% to $ 100.41 a barrel. US crude futures fell 2.36% to $ 95.94 a barrel. The US dollar index, which tracks the dollar against a basket of peers, was at 99,849 after recently passing the level of 100. The Japanese yen traded at 124.76 per dollar, weaker compared to the levels below 123.2 observed against the dollar last week. The Australian dollar was at $ 0.7427 after falling from over $ 0.763 last week.
