Asian Markets Clueless as Mixed China Data Stoke Uncertainty

Sydney: Asian markets were lost for direction on Wednesday after a reading on Chinese growth held up better than many had feared, only for data on retail sales and industrial output to disappoint.

The mixed bag was mirrored in the market reaction with Chinese shares edging higher while commodity currencies such as the Australian dollar took a hit from signs of softer demand.

Shanghai stocks wavered around flat before rising 0.25 per cent, while the CSI300 index of the largest listed companies in Shanghai and Shenzhen added 0.3 per cent.

Shanghai has been rising for six weeks straight as investors have chosen to focus on the prospect of extra policy stimulus.

MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.2 per cent, while Japan's Nikkei was all but flat.

The Australian dollar initially dipped a quarter of a U.S. cent to $0.7591, but then quickly steadied.

China's annual economic growth did slow to a six-year low of 7 per cent in the first quarter, but there was relief it matched expectations. A poor trade performance in March had stirred talk growth might fall short of the psychologically important 7 per cent level.

However, a 10.2 per cent annual rise in retail sales and 5.6 per cent growth in industrial output both missed forecasts.

Major currencies were little moved, with the dollar up 0.16 per cent against a basket of its peers. The euro held around $1.0640 after bouncing on Tuesday following a soft report on U.S. retail sales.

Against the yen, the dollar had drifted back up to 119.57 from a an overnight low of 119.07.

Wall Street had ended Tuesday mostly higher, helped by energy stocks and quarterly earnings reports that topped modest expectations following worries about a strong dollar.

The Dow rose 0.33 per cent and the S&P 500 0.16 per cent, while the Nasdaq fell 0.22 per cent.

After the bell, Intel Corp forecast revenue broadly in line with Wall Street's low expectations and signalled a hefty cut in capital expenditure this year, sending its shares up almost 3 per cent.

The latest U.S data disappointed those hoping for a strong rebound after a soft start to the year. Retail sales for March rose by less than expected and downward revisions to the previous two months left consumer spending looking a lot less healthy than first assumed.

Crude oil was firmer after a forecast that U.S. shale oil output would record its first monthly decline in more than four years and on tensions in Yemen.

U.S. crude was up 23 cents at $53.52 a barrel, having risen 3.3 per cent on Tuesday, while Brent added 44 cents to $58.87 a barrel.