Tokyo Nikkei 225 down 2.45%, S&P ASX 200 up 0.88% (Il Sole 24 Ore Radiocor) - Tokyo , 12 Jul - Asian shares closed mixed in cautious trade after yesterday's rally.

Investors digested key US data showing that inflation in the world's biggest economy had fallen more than expected in June, rekindling hopes of an interest rate cut this year.

Both US headline and core consumer-price inflation eased more than expected last month. This comes after dovish comments from Federal Reserve chair Jerome Powell over the last two days had spurred optimism over a soft landing for the US economy.

Back in the region, data showed today that China's imports dropped in June, missing expectations for slight growth, while exports grew more than expected.

In June, China's trade surplus widened to 99.5 billion dollars from 82.6 billion in May on higher exports and lower imports, according to the customs office. Exports rose 8.6% year on year, after rising 7.6% in May. Imports fell 2.3% after rising 1.8%. Economists surveyed by Bloomberg were expecting a 2.5% rise in June.

In May, Japan's industrial production rose a seasonally adjusted 3.6% month on month, according to data released by the Ministry of Economy, Trade and Industry. The reading is above the 2.8% month on month rise estimated with the preliminary data. Year on year, industrial output rose 1.1% against a preliminary reading of a 0.3% gain.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.04%, hovering at a more than two-year high after climbing for a fifth straight month in June, when it rose more than 3%, its best performance since February. The regional index hovered at its highest level since April 2022.

Japan's Nikkei 225 slipped from all-time highs after a three-day rally, slipping below the 42,000 mark hit for the first time yesterday.

Japan's top currency diplomat Masato Kanda said today that authorities would take action as needed in the foreign exchange market, after the yen's spike overnight raised market speculation about currency intervention.

The Nikkei index closed down 2.45% at 41,190 points, in Sydney the S&P ASX 200 closed up 0.88% at 7,959 points, while in Seoul the KOSPI closed down 1.20% at 2,856 points.

The Shanghai Composite index was up 0.10% at 2,973 points and the Hong Kong Hang Seng index was up 2.40% at 18,261 points.

In Mumbai the Sensex index rose 0.75% to 80, 494 points.

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(RADIOCOR) 12-07-24 09:09:57 (0174) 5 NNNN