Investors in Asia were cautious on Thursday as deflationary pressures in China and mixed earnings reports from Japan dampened market sentiment. A standoff over the U.S. debt ceiling also overshadowed a meeting of G7 finance leaders.
However, Europe’s outlook was more positive with Euro Stoxx 50 futures up 0.26%, German DAX futures up 0.2%, and FTSE futures up 0.17%. U.S. stock futures, the S&P 500 e-minis, rose 0.22%. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1%, reversing gains in the morning session, due to concerns about weak demand in China.
China’s consumer prices rose at a slower pace and missed expectations in April, while factory gate deflation deepened. The Group of Seven finance leaders will meet in Japan for three days and aim to diversify supply chains away from China while also seeking Beijing’s cooperation in solving global debt problems.