Asia markets mostly slipped on Thursday following lower-than-expected Chinese inflation data while investors digested the conclusion of a three-day trade negotiation between the Beijing and Washington.
Mainland Chinese markets, watched by investors in relation to the ongoing trade war, experienced a turbulent trading day that saw stocks close in negative territory. The Shanghai composite slipped 0.36 percent to close at 2,535.28 while the Shenzhen composite shed 0.265 percent to 1,303.48. The Shenzhen component also fell 0.259 percent to close at around 7,428.61.
The moves came after official Chinese inflation data for December, released at the same time as the market open, came in below expectations.
China's December consumer inflation (CPI) — a gauge of prices for goods and services — rose 1.9 percent on year. That was lower than economists' expectations of a 2.1 percent growth, according to a Reuters' poll. Producer inflation rose 0.9 percent on-year in December, which was lower than the 1.6 percent economists were expecting.
The latest inflation figures came on the back of poorer-than-expected Chinese manufacturing data for December.
Economic data from the world's second-largest economy has been closely watched by investors for signs of damage inflicted by the trade war between Beijing and Washington. To stimulate a slowing economy, the Chinese government has taken measures such as reducing the reserves required to be held by banks in the country to encourage lending.
"There is clearly a big slowdown ... (in) the Chinese economy and the measures so far are not enough to revive (it). At best, they could stabilize the situation probably in the second half, and we're still at the beginning of the first quarter," David Gaud, chief investment officer of Asia at Pictet Wealth Management, told CNBC's "Street Signs" on Thursday.
"Whatever they do right now, it's gonna be really tough and the first quarter is going to be challenging," said Gaud.