Asia’s major stock indexes took different turns on Tuesday with investors in uncertain mood ahead of a key US inflation report and the Federal Reserve’s policy decision on interest rates.
Concerns about a faltering Chinese economy also dampened any market enthusiasm, with imports missing forecasts amid weak domestic demand, though that did see increased bets on more stimulus being rolled out by Beijing lifting domestic stocks.
But Japan’s Nikkei share average fell for a sixth straight session as investors exercised caution ahead of that US data release on Wednesday.
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The Nikkei ended 0.16% lower at 36,159.16. The index had risen as much as 0.9% earlier in the session as investors scooped up cheaper stocks after recent sell-offs.The broader Topix dipped 0.12%, or 3.19 points, to 2,576.54.
Drug-maker Daiichi Sankyo tanked 8.64% to become the top drag on the Nikkei after trials showed an experimental drug, which the firm has jointly developed with UK-based AstraZeneca, did not significantly improve overall survival in lung cancer patients in a late-stage trial.
Technology stocks rose, with chip-making equipment maker Tokyo Electron rising 3.53% to become the biggest support for the Nikkei. Technology investor SoftBank Group rose 1.96%.
China stocks staged a turnaround after looking like they were on track for a fresh seven-month low, after strong export data failed to allay market concerns about trade disputes and domestic deflation.
China’s exports grew at their fastest pace since March 2023 in August, suggesting manufacturers are rushing out orders ahead of tariffs expected from a number of trade partners, while imports came up short.
That followed Monday’s inflation figures that pointed to still-fragile domestic demand as producer price deflation worsened, keeping alive calls for further stimulus from Beijing to shore up its economy.
The Shanghai Composite Index rose 0.28%, or 7.70 points, to 2,744.19, while the Shenzhen Composite Index on China’s second exchange advanced 0.27%, or 4.01 points, to 1,500.24.
China’s blue-chip CSI300 index was ahead 0.09% with, earlier in the session, its financial sector sub-index 0.15% lower, the consumer staples sector down 0.03%, the real estate index down 2.63% and the healthcare sub-index down 1.34%.
Hong Kong shares gained, thanks to the jump in Alibaba’s Hong Kong shares as it was added to the Stock Connect Scheme, allowing mainland investors to buy the stock.
Oil Prices Slip
Chinese H-shares listed in Hong Kong – stocks belonging to companies from the Chinese mainland – rose 0.39% to 6,026.18, while the Hang Seng Index gained 0.22%, or 37.13 points, to 17,234.09.
Elsewhere across the region, in earlier trade, Sydney, Singapore, Wellington, Manila, Mumbai and Jakarta edged up but Seoul, Taipei and Bangkok dipped.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last up a marginal 0.05%, languishing near a one-month low hit in the previous session.
Wall Street had staged an impressive rebound in the previous session, after all three major US stock indexes surged more than 1%, recovering from last week’s selloff.
US futures pared some of their gains on Tuesday, with S&P 500 futures falling 0.13%, while Nasdaq futures slipped 0.32%. Eurostoxx 50 futures similarly eased 0.02%. FTSE futures lost 0.43%.
Investors will next turn their attention to Wednesday’s US inflation report, which could provide more clarity on whether the Federal Reserve would deliver an outsized 50-basis-point cut when it meets next week.
In currencies, the US dollar eased slightly, falling 0.05% against the yen to 143.075. The euro rose 0.06% to $1.1041, while sterling ticked 0.02% higher to $1.30755.
Later on Tuesday, Democrat Kamala Harris and Republican Donald Trump will debate for the first time ahead of the Presidential election on November 5, with the two locked in a tight race for the top job.
Meanwhile, oil prices slipped, with Brent crude futures last down 0.25% to $71.66 a barrel, while US crude eased 0.33% to $68.48 per barrel. Spot gold fell 0.06% to $2,503.93 an ounce.
Key figures
Tokyo – Nikkei 225 < DOWN 0.16% at 36,159.16 (close)
Hong Kong – Hang Seng Index > UP 0.22% at 17,234.09 (close)
Shanghai – Composite > UP 0.28% at 2,744.19 (close)
London – FTSE 100 < DOWN 0.41% at 8,237.34 (0934 BST)
New York – Dow > UP 1.20% at 40,829.59 (Monday close)
- Reuters with additional editing by Sean O’Meara
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