Asian stocks mostly up, but traders shrug off China GDP

Asian markets mostly rose Wednesday but early gains were pared as dealers shrugged off news that China's economy had stabilised in the third quarter.

Figures showing 6.7 percent growth during July-September came as a relief following a years-long slowdown in China that has been a major drag on economies from Asia to the Americas.

While that figure is within the government's target of 6.5-7.0 percent for the year, it compares to the 6.9 percent annual rate in 2015, the slowest pace in a quarter of a century.

Analysts said there was little in the data to drive any big moves and Beijing would likely delay any fresh stimulus measures.

"China won't do anything new in terms of policy because the economy isn't sliding," Ben Kwong, a Hong Kong-based director at KGI Asia, told Bloomberg News. 

"Under these conditions, the market doesn't really have a direction. It needs to wait for news on US (interest) rates."

Shanghai ended flat and Hong Kong gave up 0.4 percent.

However, Tokyo closed 0.2 percent higher and Sydney -- where several listed firms have interests in China -- rose 0.5 percent. Seoul was slightly higher, Singapore put on 0.2 percent in late trade, Taipei added 0.7 percent and Manila soared 1.8 percent.

- Dollar struggles -

China's yuan benefited from the data release, climbing against the dollar for the first time in eight sessions.

The dollar struggled to recover from Tuesday's losses against the yen after dealers were left unimpressed by US inflation data which analysts said did nothing to strengthen the case for a US interest rate rise.

A below-forecast reading on producer inflation "was not sufficient to derail the prospects of a December Fed liftoff, but certainly continues to support the gradual and flat pace of rate hikes into 2017", Stephen Innes, senior trader at OANDA, said in a note.

The dollar also suffered selling against most high-yielding Asia-Pacific currencies, with the South Korean won up 0.6 percent and Indonesia's rupiah gaining 0.1 percent. There were also healthy gains for Thailand's baht and the Malaysian ringgit.

However, the US unit made inroads against the euro and pound, which rallied Tuesday on a near two-year high reading on British inflation.

Forex traders will be keenly following a European Central Bank meeting on Thursday after recent speculation it is considering tapering its vast stimulus.

Despite the chatter, some analysts expect it to maintain its easing programme and possibly flag fresh measures in December.

In early European trade London eased 0.1 percent, Frankfurt was flat and Paris added 0.1 percent.

- Key figures at 0800 GMT -

Tokyo - Nikkei 225: UP 0.2 percent at 16,998.91 (close)

Hong Kong - Hang Seng: DOWN 0.4 percent at 23,304.97 (close)

Shanghai - Composite: UP 24.60 points at 3,084.72 (close)

London - FTSE 100: DOWN 0.1 percent at 6,995.29

Euro/dollar: DOWN at $1.0977 from $1.0979 Tuesday

Dollar/yen: DOWN at 103.47 yen from 103.87 yen

Pound/dollar: DOWN at $1.2275 from $1.2295 

Euro/pound: UP at 89.50 pence from 89.29 pence

Oil - West Texas Intermediate: UP 50 cents at $50.79 per barrel

Oil - Brent North Sea: UP 49 cents at $52.17

New York - DOW: UP 0.4 percent at 18,161.94 (close)

Source: AFP