Asian stock markets edge up, China CPI hits 3-year high

China’s consumer price index rose 0.8% year on year in December, the fastest pace in nearly 34 months, while monthly prices gained 0.2%

Most Asian stock markets edged up on Friday. Asian markets mirrored that hesitancy with marginal moves as the tech sector led losses.

South Korea’s KOSPI index was largely flat after hitting record highs earlier this week on chipmaker gains. Samsung Electronics and SK Hynix slid between 1.5% and 3%.

Australia’s S&P/ASX 200 edged up 0.3%, while Singapore’s Straits Times Index traded flat.

Futures for India’s Nifty 50 were also largely unchanged.

In contrast, Japanese equities outperformed the region. The Nikkei 225 index added 1%, while the broader TOPIX index rose 0.3% as the yen weakened, boosting the outlook for export-oriented companies.

In China, official data released on Friday showed consumer inflation rose to its highest level in nearly three years, offering tentative signs of improving demand.

The consumer price index rose 0.8% year on year in December, the fastest pace in nearly 34 months, while monthly prices gained 0.2%. At the same time, producer price deflation dropped, indicating some stabilization in factory-gate prices.

The data indicated that China could be nearing an end to a prolonged deflationary period that has dampened economic growth, squeezed corporate earnings, and restrained consumer spending.

Shanghai Shenzhen CSI 300 index rose 0.3%, while the Shanghai Composite added 0.6%. Hang Seng traded flat.

Investor focus was also on the U.S. nonfarm payrolls report due later on Friday, which is expected to provide clearer insight into the health of that country’s economy and its central bank’s policy outlook. Stocks ended Thursday mixed, with technology shares sliding after recent gains, leaving the Nasdaq under pressure while the Dow and S&P 500 ended little changed. The stock index futures were largely unchanged during Asia hours on Friday.