Asia report: Markets finish mixed as China keeps rates steady

Markets in Asia finished in a mixed state on Tuesday, as China’s central bank sated market expectations by standing pat on interest rates.

In Japan, the Nikkei 225 was down 0.44% at 23,567.04, as the yen weakened 0.12% against the dollar to last trade at JPY 105.56.

Robotics specialist Fanuc was up 1.02%, while among the benchmark’s other major components, Uniqlo owner Fast Retailing was off 0.25% and technology giant SoftBank Group lost 1.44%.

Japan Exchange Group was down 1.51%, after reports that regulators would be inspecting the Tokyo Stock Exchange after trading was halted by a hardware issue earlier in the month.

The broader Topix index lost 0.75% by the end of trading in Tokyo, closing at 1,625.74.

On the mainland, the Shanghai Composite was up 0.47% at 3,328.10, and the smaller, technology-centric Shenzhen Composite added 1.33% to 2,279.38.

The People’s Bank of China kept the one-year loan prime rate at 3.85%, and the five-year loan prime rate at 4.65%, in its latest decision.

That was in line with what most analysts expected, according to a Reuters poll.

South Korea’s Kospi was ahead 0.5% at 3,258.41, while the Hang Seng Index in Hong Kong managed gains of 0.11% to 24,569.54.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics up 1.5%, while chipmaker SK Hynix was down 1.73%.

SK Hynix confirmed earlier in the session that it had agreed to buy Intel's NAND memory and storage division in a deal worth $9bn.

“Stocks in Asia are mostly lower, with the exception of China after the PBOC kept the loan prime rate steady,” said London Capital Group head of research Jasper Lawler.

“Early optimism gave way to sweeping losses across stock markets on Monday.”

The 48-hour deadline from House Speaker Pelosi had spurred early ideas that a compromise could be found in the next two days.”

But, with no signs of a deal in place halfway through the deadline, Lawler said risk-taking was suspended, turning stock markets lower.

“The 180 in stocks markets had little impact in forex markets.

“The dollar was little moved with GBP/USD and EUR/USD both higher, as USD/CHF turned lower.

“The dollar slid after data from China and a series of speeches from central bankers.”

Oil prices were higher as the region went to bed, with Brent crude last up 0.12% at $42.67 per barrel, and West Texas Intermediate rising 0.15% to $41.12.

In Australia, the S&P/ASX 200 lost 0.72% to 6,184.60, while across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.62% to 12,462.05

The down under dollars were both weaker against the greenback, with the Aussie last off 0.43% at AUD 1.4209, and the Kiwi retreating 0.53% to NZD 1.5218.