Asian shares mostly gain after uptick in inflation pulls US stocks lower

MANILA, Philippines — Asian are generally higher after most stocks on Wall Street fell following a disappointing report that said inflation was worse last month at the U.S. wholesale level than economists had expected.

U.S. futures rose while oil prices slipped.

China reported data showing its economy was feeling pressure from higher U.S. tariffs in July, while property investments fell further.

Retail sales rose 3.7% year-on-year, down from 4.8% in June, while investments in factory equipment and other fixed assets rose a meager 1.6%, compared with 2.8% growth in January-June.

Uncertainty over tariffs on exports to the United States is still looming over manufacturers after President Donald Trump extended a pause in sharp hikes in import duties for 90 days following a 90-day pause that began in May.

The Shanghai Composite index added 0.8% to 3,694.91, but Hong Kong’s Hang Seng index fell 1.2% to 25,216.45.

“Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, and value added of industry growth all reaching the lowest levels of the year. After a strong start, several months of cooling momentum suggest that the economy may need further policy support,” ING Economics said in a market commentary.

In Japan, the Nikkei 225 gained 1.7% to 43,381.10 after the government reported that the economy grew at a 1% annual pace in the April-June quarter. That was better than analysts had expected.

Elsewhere in Asia, Australia’s S&P/ASX 200 rose 0.7% to 8,938.60, Taiwan’s TAIEX gained 0.4%. India’s BSE Sensex edged 0.1% higher.

Attention later Friday will likely focus on an update on U.S. retail sales and on a meeting between U.S. President Donald Trump and Russian President Vladimir Putin.

On Thursday, seven out of every 10 stocks within the S&P 500 fell, though the index edged up by less than 0.1% to set another all-time high. The Dow Jones Industrial Average dipped 11 points, or less than 0.1%, and the Nasdaq composite fell less than 0.1% from its record set the day before.

The inflation report said that prices jumped 3.3% last month at the U.S. wholesale level from a year earlier. That was well above the 2.5% rate that economists had forecast, and it could hint at higher inflation ahead for U.S. shoppers as higher costs make their way through the system.

The data led traders to second guess their widespread consensus that the Federal Reserve will cut interest rates at its next meeting in September. Lower…