Global indicators were mixed for North American stock markets Wednesday as U.S. inflation at the consumer level rose by a larger-than-expected amount in January and the Bank of Japan hiked interest rates.

Here at home, Canadian retailers posted their highest monthly sales gain in nine years in December, with widespread increases in all eight retail sectors, Statistics Canada reported.

Total retail sales jumped 2.3% in December to an estimated $33.5 billion, the fastest monthly growth rate since December 1997. This gain more than offset losses in September and October and a lacklustre 0.3% increase in November.

For 2006 as a whole, retailers sold $391.4 billion worth of goods and services, up 6.4% from 2005 and the highest rate in nine years.

The Canadian dollar opened at US85.51¢, up 0.11 of a cent.

South of the border, consumer prices rose 0.2% during January, the U.S. Labor Department said. The increase was higher than expected as food costs jumped and medical care posted the biggest increase in 15 years. Core inflation increased 0.3%.

Overseas, the Bank of Japan raised interest rates a quarter-point to 0.5% in spite of near-zero inflation, in an attempt to ensure the country’s super-easy monetary policy won’t distort world financial markets.

In earnings news, home-improvement retailer Rona Inc. said its fourth-quarter profit rose 1.3% to $38.1 million as sales were up 13%.

Hewlett-Packard late Tuesday reported a 26% rise in fiscal first-quarter profit and an 11% increase in revenue.

Anglo American said its 2006 net profit rose 76% to US$6.2 billion and that it’s planning to return another US$3 billion in shares through a buyback program.

Crude-oil prices fell 54¢ to US$58.31 a barrel on forecasts for warmer-than-average temperatures across the northeastern U.S. from now until March.
European indexes were mostly lower, with the FTSE 100 down 0.4% in London.

Following the Bank of Japan’s rate hike, the Nikkei 225 fell 25.91 points, or 0.14%, to end the day’s session at 17,913.21

In Hong Kong, the blue-chip Hang Seng Index rose 83.51 points, or 0.41%, to 20,651.42. The market was closed Monday and Tuesday for the Chinese New Year holiday.

Toronto stocks moved higher Tuesday, setting a new all-time high record close, as financial shares offset a fall in energy issues.

The S&P/TSX composite index gained 28.10 points, or 0.21%, to 13,319.65.

Six of the 10 TSX main groups finished higher for the session.

Financials moved up 0.88%.

The S&P/TSX Venture composite index gained 1.22 points, or 0.04%, to 3,124.15.

In New York, markets were up on strong corporate news and the lower price of oil.

The Dow Jones industrial index gained 19.07 points, or 0.15%, to 12,786.64, the Nasdaq composite index moved up 16.73, or 0.67%, to 2,513.04, and the S&P500 lifted 4.14, or 0.28%, to 1,459.68.