Asia report: Markets mixed as China cuts growth rate forecasts

Markets in Asia finished in a mixed state on Tuesday, although Chinese bourses were in the green even after officials in Beijing cut their growth targets for the world’s second-largest economy.

In Japan, the Nikkei 225 was down 0.44% at 21,726.28, as the yen weakened 0.15% against the dollar to last trade at JPY 111.92.

The broader Topix index was 0.51% lower in Tokyo, closing at 1,619.23.

Technology conglomerate SoftBank Group was among the losers of the day, falling 0.51% to 1,619.23.

On the mainland, the Shanghai Composite was ahead 0.88% at 3,054.25, and the smaller, technology-heavy Shenzhen Composite rose 2.28% to 1,635.98.

China’s politburo began its annual parliamentary meeting on Tuesday, with premier Li Keqiang confirming the country’s growth targets would be between 6.0% and 6.5% for the current year.

That was lower than the official 6.6% growth rate reported for 2018, and would be the slowest pace of growth for the People’s Republic in 29 years.

Premier Li told parliamentarians that China would need to be braced for a difficult period ahead, explaining that it was faced with a “grave and more complicated environment”.

South Korea’s Kospi was off 0.52% at 2,179.23, while the Hang Seng Index in Hong Kong eked out gains of 0.01% to settle at 28,961.60.

Of the blue-chip technology stocks in Seoul, SK Hynix reflected the broader marker and fell 0.57%.

Oil prices were higher as the region went to bed, with Brent crude last up 0.2% at $65.80 per barrel, and West Texas Intermediate rising 0.35% to $56.79.

In Australia, the S&P/ASX 200 slipped 0.29% to close at 6,199.30, after the Reserve Bank of Australia stood pat on its monetary policy, and kept the country’s official cash rate on hold at 1.5%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.1% at 9,399.69, falling from the record high close it hit on Monday.

Energy generator and retailer Mercury led the losses in Wellington, as it fell 3.4%, also falling from a record close a day earlier.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.28% at AUD 1.4139, and the Kiwi retreating 0.49% to NZD 1.4728.