Asia-Pacific shares mixed as Wall Street struggles for direction

Asian-Pacific shares were mixed on Wednesday, with Wall Street struggling for direction. China and Hong Kong markets remain closed for the Lunar New Year holidays.

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In South Korea, the Kospi index rose by 1.39% to close at 2,428.57 points, while the Kosdaq index climbed by 2% to end at 732.35 points. In Japan, the Nikkei 225 index added 0.35% to 27,395.01 points, and the Topix index inched up by 0.39% to 1,980.69 points. Australia's S&P/ASX 200 index declined by 0.3% to 7,468.3 points as the country's inflation rate hit a post-1990 peak.

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Markets in China and Hong Kong are closed today in observance of a holiday. New Zealand's inflation rate rose 1.4% in the fourth quarter of 2020. This was higher than the previous quarter's inflation rate of 0.9%. In the U.S., overnight trading was relatively flat, with the Dow Jones Industrial Average closing up for the third day in a row. However, the S&P 500 and Nasdaq Composite both dipped slightly.

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Adani group stocks fell in early trading in Mumbai after short seller firm Hindenburg announced its short position in the company.
Adani Port shares fell more than 6%, while Adani Power and Adani Transmission shares both fell more than 4%. Adani Enterprises shares fell more than 2.6%.
Hindenburg also accused founder and Indian billionaire Gautam Adani of engaging in what they called "brazen" stock manipulation and accounting fraud.
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Singapore's core inflation rate rose 5.1% in December on an annualized basis, according to the Ministry of Trade and Industry.
The inflation rate in December remained unchanged from November, and slightly beat expectations. Smaller price increases for retail and other goods, as well as electricity and gas were offset by higher food and services inflation. This is good news for consumers and businesses alike, as it indicates that prices are stabilizing.
The core inflation rate does not include costs for private transport and accommodation.

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The consumer price index for all items in December decreased from 6.7% to 6.5%. The ministry said in a statement that prices of energy and food commodities had come down from their earlier peaks in 2022, but that they remain elevated. According to Rajiv Batra, chief southeast Asia strategist for JPMorgan, Thailand's interest rate is expected to peak within this quarter. Batra told CNBC's "Squawk Box Asia" that the Bank of Thailand is likely to pause after delivering two consecutive rate hikes of 25 basis points - one later today and another later this quarter.

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Batra said that there could be an additional interest rate hike of 25 basis points in the next quarter if China's reopening drives inflation higher.
There could be an upside risk of another 25% in the second quarter, if China's reopening leads to a significant increase in demand, according to one analyst.
He said that Thailand is likely to be the only nation to see an expansion in 2023. According to Batra, Thailand is the one country in ASEAN that is likely to see positive growth revision this year, compared to other countries in the region which may see some amount of slowdown.

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According to JPMorgan, foreign tourist arrivals are expected to reach 26 million this year, which is about 65% of the total number of arrivals in 2019. This is higher than the Thai government's estimates of 25 million, according to the Tourism Authority of Thailand. Inflation in Australia rose to a new 32-year high of 7.8% in the final quarter of the fiscal year of 2022. This marks the fastest pace since March 1990 and is cause for concern among economists.

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According to the Australian Bureau of Statistics, the annualized figure of a rise in consumer prices was backed by higher prices in food, automotive fuel, and new residential construction. Prices for domestic and international travel rose by 13.3% and 7.6%, respectively. This was the biggest increase in prices for any category.
Economists polled by Reuters had forecasted the quarter’s consumer price index to rise 7.5%. This is lower than the Reserve Bank of Australia’s forecasts to see a print of 8%.

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Berenberg has predicted that shares in an independent video game developer will increase by more than 200%. The company is said to have provided a very encouraging outlook for 2023.

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The investment bank is not the only one that likes the developer - although it is the most bullish. The consensus price target of six analysts covering the stock indicates a potential upside of over 70%, according to FactSet data. All but one have a buy rating on the company's shares. New Zealand's inflation rate remained steady at 7.2% in December, just below a three-decade high. This is a positive sign for the country's economy, as it indicates that prices are stabilizing.

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According to a report released by Statistics New Zealand, housing and household utilities was the largest contributor to the December 2022 annual inflation rate. This was due to rising prices for both constructing and renting housing.

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New Zealand's CPI reading for the fourth quarter rose 1.4% on a quarter-on-quarter basis. This is an increase from the previous quarter's reading.
On Tuesday, stocks were volatile but ultimately ended up in positive territory. The Dow Jones Industrial Average was the biggest winner, closing up for the day.
The 30-stock index gained 104.40 points, or 0.31%, to close at 33,733.96. The S&P 500 dipped 0.07% to settle at 4,016.95, while the Nasdaq Composite dropped 0.27% to end at 11,334.27.

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Alphabet's stock took a hit on Tuesday after the U.S. Justice Department filed its second antitrust lawsuit against Google in just over two years. The suit alleges that Google has been using its dominance in the online search market to stifle competition and harm consumers. The first lawsuit against Google under the Biden administration is calling for a breakup of the company's advertising business. This is the first such lawsuit against Google, and it could have major implications for the company.

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Manufacturing and services activity slowed in January, as signs of a looming recession continued to build.
S&P Global's flash readings released Tuesday morning showed both sectors in contraction. The services purchase managers index registered a 46.6 reading, up from 44.7 in December, but still in contraction territory. Likewise, the manufacturing reading was at 46.8, up 0.6 percentage points from the previous month.
Surveys with readings below 50 indicate contraction, as indicated by the percentage level of businesses reporting expansion.

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According to Chris Williamson, S&P Global's chief business economist, the US economy started 2023 on a disappointingly soft note, with business activity contracting sharply again in January. Although the rate of decline moderated compared to December, it was still among the steepest seen since the global financial crisis, reflecting falling activity across both manufacturing and services.

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According to the reports, input prices rose in January after several months of softening trends. This is a positive development for the economy, as it indicates that inflationary pressures are beginning to build again.