Asia report: Stocks mixed as investors look ahead to data

Asia-Pacific stock markets presented a varied picture on Tuesday, with some indexes gaining ground while others struggled to make headway.

Investors exercised caution, tightening their purse strings in anticipation of vital data releases later in the week, especially the inflation report due from Australia on Wednesday.

“Asian equity markets had a mixed performance overnight as the risk sentiment gradually improved following a mostly negative performance in the US market,” said Patrick Munnelly at TickMill.

“The major indices in the US were subdued as the quarter-end approached, with the Nasdaq underperforming due to weakness in the technology and communications sectors.

“The Nikkei 225 index experienced pressure, extending its pullback from the 33,000 handle.”

Munnelly said speculation had increased that the recent weakness in the currency could prompt the Bank of Japan to make adjustments to its yield curve control (YCC) policy.

“On the other hand, the Hang Seng index in Hong Kong Shanghai Composite index both rose.

“Hong Kong's market was led by gains in the technology and property sectors, supported by the People's Bank of China's continued liquidity efforts.

“Additionally, Premier Li pledged to implement effective policy measures, and there were reports of US Treasury Secretary Yellen planning a trip to China early next month, indicating potential positive developments in US-China relations.”

Japan's benchmark indexes, the Nikkei 225 and Topix, closed the day with minor losses of 0.49% and 0.28% respectively, bringing the Nikkei to 32,538.33 points and the Topix to 2,253.81.

Among the largest losers in Tokyo were CyberAgent, with a drop of 4.08%, Sumitomo Dainippon Pharm, slipping by 3.44%, and Z Holdings, closing 2.67% lower.

China, on the other hand, witnessed gains in its main indexes, as the Shanghai Composite rose by 1.23% to reach 3,189.44, and the Shenzhen Component grew by 0.97% to end at 10,978.08.

Market participants saw considerable gainers in Guangdong Hotata and China Shipbuilding Group, soaring by 10.03% and 10.02%, respectively.

In Hong Kong, the Hang Seng Index saw a substantial rise, adding 1.88% to settle at 19,148.13.

Stocks like Country Garden Services, Longfor Properties, and Sunny Optical Tech experienced a surge, with gains of 11.26%, 8.17%, and 7.49% respectively.

South Korea's Kospi index edged down by a mere 0.03% to 2,581.39.

Celltrion suffered one of the steepest falls in the market, plunging by 8.66%, while Hyundai Engineering & Construction closed 4.17% lower.

Australia's S&P/ASX 200 climbed 0.56% to reach 7,118.20.

Leading the pack were Scentre Group, with a rise of 3.98%, and Ingenia Communities Group, increasing by 3.13%.

New Zealand's S&P/NZX 50 ticked up slightly, adding 0.09% to settle at 11,649.20.

Pacific Edge was a notable performer, rocketing by 15.58%, while Scales Corporation saw a respectable gain of 3.88%.

In the currency markets, the dollar was last 0.24% stronger on the yen to trade at JPY 143.86.

However, it slipped against the Aussie and the Kiwi by 0.23% and 0.17%, to change hands at AUD 1.4947 and NZD 1.6194 respectively.

On the energy front, Brent crude futures were last down 0.66% on ICE at $73.69 per barrel, while the NYMEX quote for West Texas Intermediate followed suit, sliding 0.68% to $68.90.

Reporting by Josh White for Sharecast.com.