Asia report: Shares mixed as Australian interest rates lifted to 3.35%

Asia-Pacific stocks were mixed on Tuesday as traders and investors digested the Reserve Bank of Australia’s widely-expected 25 basis point rate hike.

Australia's S&P/ASX 200 lost early gains to fall 0.46% to 7504.1, while the Australian dollar strengthened 0.67% to last trade at 0.6926 against the US dollar. The RBA moved lifted rates to 3.35%, the highest since 2012.

“Inflation is expected to decline this year due to both global factors and slower growth in domestic demand,” RBA Governor Philip Lowe said in a statement.

Lowe added the central bank’s forecast for Australia’s consumer price index is 4% 2023 and expects to reach 3% by mid-2025.

South Korea’s benchmark Kospi was up 0.55% to 2,451.71. In Japan, the Nikkei 225 fell fractionally to end its session at 27,685.47 and the Topix rose 0.21% to 1,983.4.

Hong Kong’s Hang Seng index rose 0.4% to 21314.69.

Shares in Baidu surged more than 13% in Hong Kong’s trading session as the company said its artificial intelligence chatbot was almost ready for public launch.

In mainland China, the Shenzhen Component rose 0.12% to 11,926.88 and the Shanghai Composite rose 0.29% to 3,248.09.

Indian shares were down again, finishing 0.72% lower. Most shares of troubled Adani Group companies rose on Tuesday after the company said its promoters pre-paid over $1bn in loans through share pledges.

In South Korea shares in Kakao Entertainment climbed more than 4% after it announced a 112 billion won ($89.1m) deal to acquire 1.23 million more shares in South Korean entertainment giant SM Entertainment. The deal will take Kakao’s stake in SM Entertainment to 9.05%.

Reporting by Frank Prenesti for Sharecast.com