Asia report: Markets finish higher as investors look to central bank meetings
Most markets in Asia were in the green on Tuesday, as investors held their breath ahead of a number of key central bank meetings in the coming days and weeks.
In Japan, the Nikkei 225 was up 0.95% at 21,620.88, as the yen weakened 0.24% against the dollar to last trade at JPY 108.13.
Of the major components on the benchmark index, fashion firm Fast Retailing was down 0.38%, while automation specialist Fanuc rose 2.39% and technology conglomerate SoftBank Group surged 4.03%.
Another technology stock, semiconductor firm Tokyo Electron, was also in the green, rising 3% by the end of trading.
The broader Topix index was ahead 0.8% by the time markets closed in Tokyo, settling at 1,568.82.
On the mainland, the Shanghai Composite rose 0.45% to 2,899.94, and the smaller, technology-heavy Shenzhen Composite gained 0.88% to 1,545.87.
South Korea’s Kospi was 0.39% firmer at 2,101.45, while the Hang Seng Index in Hong Kong was ahead 0.34% at 28,466.48.
Both of the blue-chip technology stocks were in positive territory in Seoul, with Samsung Electronics up 0.21% and chipmaker SK Hynix ahead 0.51%.
Korean carmaking giant Hyundai Motor was down 0.75%, after the company’s earnings report missed expectations, even though it was still the biggest rise in quarterly profit since 2012.
Steel producer Posco was in the green by 1.27%, after it reported a 15% fall in second quarter operating profit, which was in line with market forecasts.
Investors were exercising cautious optimism during the Asian session, ahead of the European Central Bank policy meeting later in the week, and the US Federal Reserve’s session next week.
Many analysts were keen to see how the bond market would react to the Fed announcement, with any further pressure on yields suggesting the bond market as feeling the central bank could be doing more.
Markets are broadly anticipating a 25 basis point interest rate cut from the Fed, after the bank left the door open to further easing following its policy meeting in June.
Oil prices were lower as the region went to bed, with Brent crude last off 0.67% at $62.84 per barrel, and West Texas Intermediate falling 0.47% to $55.96.
“The fact that oil prices have not climbed further on Iranian tensions hints at two possibilities,” said London Capital Group senior market analyst Ipek Ozkardeskaya.
“First, the US oil production certainly acts as a powerful buffer face to the Middle East supply-side crisis.
“Second, investors are more concerned about a slowing global demand due to trade tensions. Or both.”
In Australia, the S&P/ASX 200 managed gains of 0.5% to close at 6,724.60, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.4% to reach another record close of 10,867.25.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.06% at AUD 1.4222, and the Kiwi retreating 0.4% to NZD 1.4854.