Asian stocks ended broadly lower on Friday after the Federal Reserve reiterated its hawkish stance and the populist government in Rome flatly dismissed the EU’s more pessimistic outlook for the Italian economy, deepening a rift with the European Union.
China’s Shanghai Composite index fell 1.39 percent to 2,598.87 as policymakers struggle to dispel stock market gloom with promises of tax cuts and more bank lending. Hong Kong’s Hang Seng index slumped 2.39 percent to close at 25,601.92.
Consumer prices in China rose 2.5 percent year-on-year in October, the National Bureau of Statistics said in a report. That was in line with expectations and unchanged from the September reading.
The bureau also said that producer prices climbed an annual 3.3 percent – matching forecasts and slowing from 3.6 percent in the previous month.
Japanese markets fell as dismal inflation data from China as well as lingering concerns of slowing growth pulled down shares of companies that have large exposure to China. The Nikkei average tumbled 236.67 points or 1.05 percent to close at 22,250.25 after hitting a 2-1/2-week high in the previous session.
The broader Topix index ended down 0.49 percent at 1,672.98. Industrial robotics company Fanuc plummeted 5.8 percent, cosmetics maker Shiseido lost 5 percent and console gaining giant Nintendo shed 2.6 percent.
Australian markets edged lower but scored their second week of gains. The benchmark S&P/ASX 200 index slipped 0.11 percent to 5,921.80 but ended the week up more than 1 percent. The broader All Ordinaries index finished little changed with a negative bias at 6,011.
Mining heavyweights BHP Billiton and Rio Tinto ended narrowly mixed on concerns that they might be hit by the new resource regulations to be unveiled by Australia’s Queensland state next week. South32 declined 2.8 percent and Bluescope Steel lost 3.3 percent