Asian stocks pare gains, unimpressed by robust China CPI

Despite stronger-than expected Chinese CPI data, risk-on trades are seen losing steam, weighing on the sentiment around the Asian stocks.

The Asian equities are paring early gains on Friday as investors remain confused in wake of mixed economic releases from China, with the CPI figures beating estimates, while yesterday’s trade data disappointed markets big time. China stocks dipped as the yuan picked-up strength on the release of Chinese CPI data, which showed the first increase in 55 months.

The Japanese stocks came under pressure over the last hour, as the yen regained strength somewhat after the USD/JPY pair ran into offers near 104 handle once again. Meanwhile, the CBOE Volatility Index, the "fear gauge" of near-term investor anxiety held near 16.70, up almost 5%, which indicated broader market uncertainty.

Meanwhile, Japan’s Nikkei 225 trade muted around 16,776, the Australian S&P/ASX 200 gains +0.10% to 5441. The Chinese equities turn negative, with the benchmark Shanghai Composite index down -0.25%, while CSI300 index also drops -0.20%. Hong Kong markets rise +0.45% to trade around 23,150 levels.