Asia markets traded mostly lower on Tuesday, though Australian stocks were higher as the Reserve Bank of Australia’s kept rates steady, while Nissan Motor Co. plunged after disappointing interim results.
For the second session in a row, Asia started the day higher before slipping into negative territory, trading close to the break-even mark as the markets waited for a number of events at the end of the week.
On Friday, China’s Communist Party will start the Third Plenum, a meeting during which it is expected to provide details of economic policy for the next decade. Also at the end of the week, the U.S. will release its nonfarm payrolls figures — a key economic indicator that has been watched closely in recent months to see whether the U.S. Federal Reserve will roll back its bond-buying program.
On Tuesday, Australia’s S&P/ASX 200 rose 0.4% as the Reserve Bank of Australia kept the benchmark cash-rate at a record low of 2.5%.
Expectations for a cut were low, though the local currency moved after the decision. The Australian dollar fell as low as 94.67 U.S. cents after the decision, compared with 95.09 U.S. cents late Monday in New York, but later recovered to 94.91 U.S. cents.
Hong Kong’s Hang Seng Index dropped 0.6%, and the Shanghai Composite lost 0.4% on the Chinese mainland.
A rise in Hong Kong’s single largest constituent, HSBC Holdings , wasn’t enough to lift the market. The lender’s stock added 1.4% after reporting a 28% increase in third-quarter profit, as strong performance in the bank’s Hong Kong and North American operations helped offset a fall in revenue in its Latin America and Asian-Pacific businesses.
South Korea’s Kospi fell 0.5%, Singapore’s Straits Times Index rose 0.3%, and the Philippines PSE Composite was flat.
Japan’s Nikkei Average rose 0.1%, reopening after a public holiday on Monday stopped trading. The market gave up its early gains as the yen pushed higher against the dollar — last at ¥98.43 to the dollar, compared with ¥98.66 late Monday in New York.
Investors were reacting to more earnings in Japan, with Nissan Motor plunging 10% after the car maker cut its full-year net profit forecast to ¥355 billion ($3.61 billion) from ¥420 billion due to costly recalls in first half of the fiscal year, as well as disappointing performance in some emerging markets.
The market was also disappointed by Suzuki Motor Corp.’s interim report, with the stock down 0.7% despite the company reporting an record profit, due to a weaker yen and cost reductions.
Source : Marketwatch
