Asia report: Markets mixed as investors await infaltion data

Asia-Pacific markets experienced a mixed performance on Tuesday, with positive momentum in several key indices as investors eagerly awaited highly anticipated talks between the United States and China and the release of more economic data.

Patrick Munnelly at TickMill noted that markets were awaiting the release of US consumer price index (CPI) data.

“The Nikkei 225 saw advancement, driven by earnings releases and Japan’s consideration of corporate tax breaks for companies implementing an 8% wage increase,” he noted.

“Meanwhile, the Hang Seng and Shanghai Composite indices displayed indecisiveness, influenced by weak new yuan loans and aggregate financing data.

“Price action remained range-bound ahead of the Biden-Xi meeting, where an announcement of a deal on a fentanyl crackdown by China was anticipated.”

Patrick Munnelly said the varied performance across the markets reflected the influence of domestic factors, such as earnings and economic data, and broader geopolitical considerations, such as the upcoming meeting between the leaders of the US and China.

“Investors are navigating a complex landscape influenced by a mix of economic indicators and global events.

“Upcoming Chinese industrial production and retail sales data are highly anticipated as timely updates on the state of the world’s second-largest economy.

“The data releases will provide crucial insights into the current economic activity, given ongoing concerns about growth in China.

“The consensus expectation is that the data will confirm a faltering in activity - the market will closely analyse indicators such as industrial production and retail sales.”

Equity markets close in mixed state across region

In Japan, the Nikkei 225 rose by 0.34% to close at 32,695.93, while the Topix index increased by 0.37% to reach 2,345.29.

Leading the gainers on Tokyo’s benchmark was Taisei, up 6.47%; Isuzu Motors, ahead 4.18%; and Sumitomo Electric Industries, gaining 3.88%.

Mainland Chinese markets showed signs of optimism, with the Shanghai Composite edging up 0.31% to finish at 3,056.07 and the Shenzhen Component gaining 0.17% to settle at 10,005.56.

Among the leading performers in Shanghai were Epoxy Base Electronic Material, which jumped 10.05%, and HangZhou Iron & Steel, which was ahead by 10%.

Meanwhile, the Hang Seng Index in Hong Kong experienced a slight decline of 0.17% to close at 17,396.86, led lower by ANTA Sports Products, which lost 4.94%, while Meituan was off 2.96% and NetEase finished 2.35% lower.

South Korea’s Kospi index posted a gain of 1.23%, reaching 2,433.25, with notable contributors including POSCO Future M, which rose by 7.65%, and SKC advanced by 5.34%.

Australia’s S&P/ASX 200 index advanced 0.83% to 7,006.70, led higher by ALS and Life360, which rose 8.52% and 6.07%, respectively.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.72% to finish at 11,173.28.

Notable performers in Wellington included Restaurant Brands New Zealand, up 6.93%, and Oceania Healthcare, which jumped 4.41%.

In currency markets, the dollar was last down 0.01% on the yen at JPY 151.70, remained stable on the Aussie at AUD 1.5682, and strengthened 0.04% against the Kiwi to change hands at NZD 1.7023.

On the oil front, Brent crude futures were last up 0.18% on ICE at $82.67 per barrel, while the NYMEX quote for West Texas Intermediate gained 0.24% to reach $78.45.

Consumer confidence takes a hit in Australia

In economic news, Australia’s consumer confidence took a hit in November, according to fresh Westpac-Melbourne Institute survey data.

The survey showed a decline in the consumer sentiment index, dropping to 79.9 in November from 82 in October.

According to the survey, that decrease pushed consumer sentiment to notably pessimistic levels.

It pointed to a significant factor contributing to the decline in the recent decision by the Reserve Bank of Australia to raise interest rates by 25 basis points to 4.35%.

That rate hike, implemented last week, caused a decline of about six points in consumer confidence during the survey week.

Reporting by Josh White for Sharecast.com.