Asian shares mixed, Japan shrugs off weak inflation data

HONG KONG, Jan 30 (AFP): Asian stock markets were mixed Friday, with Tokyo's main index rising as traders took heart from news employment hit its lowest level since 1997, despite a slowdown in inflation and weak consumer spending.

Tokyo's gains were in line with a broad rally on Wall Street the day before, after the Federal Reserve signalled that growth and jobs in the world's top economy remained robust and a raft of generally solid US corporate earnings.

The benchmark Nikkei-225 index on the Tokyo Stock Exchange rose 0.39 per cent, or 68.17 points, to 17,674.39 at the close, with traders buoyed by a weaker yen, which boosts Japanese exporters.

Sydney gained 18.82 points, or 0.34 per cent, to close at 5,588.3 while Seoul finished flat, closing down 1.76 points at 1,949.26.

But in mainland China, shares closed the week nearly four per cent lower, pressured by concerns about market liquidity and regulatory inspections of margin trading, dealers said.

The Shanghai Composite index fell 1.59 per cent, or 51.95 points, to 3,210.36 while Hong Kong declined 0.36 per cent, or 88.8 points, to 24,507.05.

Official data released Friday showed Japan's consumer inflation slowed for a fifth month in December to 2.5 per cent year-on-year, down from 2.7 per cent in November, on the back of plummeting oil prices and weaker consumer spending.

Adjusted for a sales tax increase, the rate rose just 0.5 per cent, well short of the Bank of Japan's 2.0 per cent inflation goal. The news stoked fears Tokyo is losing its war on deflation, hiking pressure on the Bank of Japan to unleash more stimulus to combat the potentially damaging downward spiral of prices.

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