Asia report: Markets mixed as investors look to Fed decision

Asia-Pacific markets presented a mixed performance on Tuesday, reflecting a cautious sentiment as traders awaited the US Federal Reserve’s decision on Wednesday.

The key decision was set to follow the release of the May inflation report earlier that same day, potentially influencing global economic outlooks.

“Asian markets are carefully assessing the impact of right-wing parties' success in the European Union and its potential effects on the bloc's unity,” said TickMill market analyst Patrick Munnelly.

“French President Emmanuel Macron attempted to unite left-wing and centrist parties against the right, but has had limited success so far.

“The first opinion poll indicated that the far-right National Rally party could potentially win the snap election, but may not secure an absolute majority.”

Munnelly said that among Asian markets, Japan, South Korea, and Taiwan saw gains, while China experienced a decline as it faced post-payrolls pressure following a holiday on Monday.

“The attention of global markets is currently on the forthcoming US CPI inflation data and the Federal Reserve's monetary policy update, both set to be released tomorrow.”

In Japan, the Nikkei 225 saw a modest rise of 0.25%, closing at 39,134.79, buoyed by gains in the healthcare and technology sectors.

Chugai Pharmaceutical surged by 3.47%, Ebara climbed 3.44%, and Taiyo Yuden increased by 3.35%.

Conversely, the broader Topix index dipped slightly by 0.2% to 2,776.80.

Chinese markets showed divergent trends, as the Shanghai Composite dropped by 0.76%, ending at 3,028.05, with significant declines from Cosco Shipping Holdings and Guangdong Songyang Recycle Resources, both falling by 10.01%.

The Shenzhen Component, however, edged up by 0.07% to 9,262.35.

Hong Kong's Hang Seng Index fell by 1.04% to 18,176.34, with notable losses from Orient Overseas International, which plummeted 9.39%, and Hang Lung Properties, which decreased by 7.81%.

China Hongqiao Group also saw a significant drop of 6.68%.

South Korea's Kospi index increased by 0.15% to 2,705.32.

The index was bolstered by substantial gains from Posco International, which soared by 14.13%, Hanwha Solutions, up 8.74%, and Lotte Chemical Corporation, rising 8.61%.

The Australian S&P/ASX 200 dropped by 1.33%, closing at 7,755.40.

Mining stocks faced steep declines, with Emerald Resources falling 9.69%, Genesis Minerals down 8.79%, and Capricorn Metals losing 7.31%.

New Zealand's S&P/NZX 50 remained relatively flat, slipping just 0.02% to 11,785.48.

Sky Network Television declined by 5.51%, Synlait Milk by 4.11%, and Infratil by 2%.

In currency markets, the dollar strengthened 0.11% on the yen to trade at JPY 157.22, by 0.22% against the Aussie to AUD 1.5163, and NZD by 0.06% on the Kiwi to change hands at NZD 1.6327.

On the oil front, Brent crude futures were last down 0.31% on ICE to $81.38 per barrel, while the NYMEX quote for West Texas Intermediate decreased 0.35% to $77.47.

Reporting by Josh White for Sharecast.com.