Asia’s major stock indexes endured a mixed day on Tuesday with contrasting cues directing sentiment, as a US tech slump weighed in Japan while signs of a long-awaited turnaround in China’s property sector – and hopes of stimulus from Beijing – boosted the mood elsewhere.
Many bourses shook off earlier losses, helped by assurances that Beijing would move to support flagging growth in the world’s second-largest economy, helping investors shift their focus away from risks around interest rates and Russia.
But Japan’s Nikkei share average slumped to its longest losing streak of the year, with many of the nation’s biggest technology names tracking overnight declines in US peers.
Also on AF: Berkshire Shrinks BYD Stake Again With $86.3 Million Sale
Though selling continued to dominate as investors booked profits following the Nikkei’s surge to a 33-year peak last week, losses in the latest session were capped by gains for Chinese equities amid growing expectations of imminent stimulus from Beijing.
The Nikkei ended the day down 0.49% at 32,538.33, paring declines steadily over most of the afternoon session. Earlier, it had slumped as much as 1.2%. The broader Topix slipped 0.28% to 2,253.81.
The Nikkei has lost a combined 3.1% during the current, four-day losing streak, its longest since mid-December. It reached a post-bubble-era high of 33,772.89 on June 19.
Online company CyberAgent led Nikkei decliners with a 4.08% drop, while chip-testing equipment maker Advantest – whose share fortunes have been closely tied to customer Nvidia amid the AI euphoria – slumped 2.49%.
However, China and Hong Kong stocks rose led by property shares as a potential buyout of a developer helped lift sentiment, while investors continued to watch Sino-US tensions for any signs of easing.
Property developer New World Development’s NWS Holdings hit a two-year peak on a buyout offer at premium. Mainland property shares listed in Hong Kong jumped more than 4%, while properties and construction stocks were up 2.7%.
The Chinese yuan also perked up significantly as central bank guidance sent a clear warning to traders that authorities were becoming less tolerant of the currency’s recent weakness.
The Shanghai Composite Index rose 1.23%, or 38.82 points, to 3,189.44, while the Shenzhen Composite Index on China’s second exchange was ahead 1.35%, or 27.05 points, to 2,029.98.
Meanwhile, tech stocks traded in Hong Kong soared 2.2%. The Hang Seng Index gained 1.88%, or 354.00 points, to 19,148.13.
Elsewhere across the region, in earlier trade Sydney, Singapore, Mumbai, Manila and Jakarta also rose. Seoul, Wellington and Taipei retreated. MSCI’s gauge of Asia Pacific stocks outside Japan was ahead 0.66%.
Aborted Russia Mutiny Fallout
Europe and Wall Street were set to open higher with FTSE futures up 0.3% at 0422 GMT and E-mini futures for the S&P 500 index climbing 0.21%.
Geopolitical turmoil has in recent days dampened risk appetite following an aborted mutiny in Russia on the weekend, which appeared to reveal cracks in President Vladimir Putin’s grip on power.
All three major US stock indexes ended in the red on Monday, with megacap momentum stocks pulling the tech-heavy Nasdaq down the most.
“Although the situation has subsided, any subsequent insurrection against Russia remains a potential cause for concern, potentially triggering a defensive reaction in safe-haven assets,” said Anderson Alves, a global macro analyst at ActivTrades.
In currency markets, the dollar index was down 0.136%. Ten-year US Treasury yields were steady in early Asia trade at 3.7154%. Two year yields fell 7 basis points to 4.671%.
In energy markets, US crude went up 0.52% to $69.73 a barrel at 0421GMT while Brent gained 0.51% to $74.56 a barrel.
Spot gold added 0.3% to $1,928.5 an ounce.
Key figures
Tokyo – Nikkei 225 < DOWN 0.49% at 32,538.33 (close)
Hong Kong – Hang Seng Index > UP 1.88% at 19,148.13 (close)
Shanghai – Composite > UP 1.23% at 3,189.44 (close)
London – FTSE 100 > UP 0.13% at 7,463.47 (0937 GMT)
New York – Dow < DOWN 0.04% at 33,714.71 (Monday close)
- Reuters with additional editing by Sean O’Meara
Read more:
S&P Lowers China GDP Outlook, More Stimulus Seen in July
Yield Curve Call Sparks BOJ Policy Doubts as Yen Struggles
China Plays Down Russian Revolt as ‘Internal Affair’
