Asian shares extend losses after China prices cool
Asian shares tottered on Wednesday, extending losses after consumer inflation in China eased more than expected and heightened concerns about deflationary pressures in the world's second-largest economy.
China's consumer price index (CPI) rose 1.6pc in September from a year earlier, the National Bureau of Statistics (NBS) said, falling short of expectations of 1.8pc and down from August's 2pc.
"Given the lacklustre growth outlook, we continue to expect moderate fiscal stimulus from the central government and continued monetary easing," said economists at Nomura.
Earlier on Wednesday, the Monetary Authority of Singapore said that it will ease its monetary policy for the second time this year by slowing the pace of the Singapore dollar's appreciation. The move was aimed at reviving an economy that narrowly avoided a recession in the third quarter.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.8pc, while Japan's Nikkei stock index shed 1.8pc.
Chinese shares were also lower, with the blue-chip CSI300 index and the Shanghai Composite Index both down 0.6pc.
Australian shares also extended losses after the China price figures, with the S&P/ASX 200 index down 0.5 pc, reflecting China's importance as Australia's main trading partner.