Asia report: Markets mixed as RBA stands pat on rates
Markets in Asia were mixed on Tuesday, with a number of the larger exchanges returning from a long weekend after various public holidays on Monday.
In Japan, the Nikkei 225 was up 0.7% at 19,445.70, and the broader Topix was 0.68% firmer at 1,550.30.
The yen was weaker against the greenback, last retreating 0.33% to JPY 112.21 per $1.
On the mainland, the Shanghai Composite was down 0.35% at 3,142.71, while the smaller, technology-focussed Shenzhen Composite finished almost flat.
Manufacturing data was putting pressure on Chinese markets, after the country’s purchasing managers index fell to a seven-month low for April.
South Korea’s Kospi was up 0.65% at 2,219.67, while Hong Kong’s Hang Seng Index added 0.33% to 24,696.13.
The Hang Seng hit a 21-month high on Tuesday, as gambling stocks continued to rally after the sector’s strong April.
Eyes were turning stateside as the week progressed, with the Federal Open Market Committee set to begin its two-day policy meeting later on Tuesday.
Oil prices were slightly higher in late Asian trading, with Brent crude last up 0.85% at $51.96 per barrel, and West Texas Intermediate 0.57% firmer at $49.12.
Australia’s S&P/ASX 200 was off 0.1% at 5,950.37, as the weighty financials subindex sank 0.81%.
The Reserve Bank of Australia stood pat on its official cash rate, keeping it at a record low 1.5%.
Governor Philip Lowe explained in his policy statement that the highly variable conditions in the residential property market were behind the decision.
“There's currently no monetary policy bias built into the RBA futures curve for this year, with less than two basis points of easing ‘priced in’ by December - an understandable less-than-10% chance of a cut,” noted National Australia Bank director of economics David de Garis before the decision was released.
One of Australia’s ‘big four’ banks, Australia and New Zealand Banking Group, reported before the open, with its half-year cash profit rising 23% year-on-year to AUD 3.41bn in the six months to 31 March.
Its shares still closed down by 2.12%, with its peers also falling.
Commonwealth Bank of Australia was off 0.72%, National Australia Bank fell 0.23% and Westpac finished 0.91% softer.
In New Zealand, the S&P/NZX 50 rose for the seventh session in a row, adding 0.5% to settle at 7,422.49 as yield hunters descended on the market.
Part-state-owned flag carrier Air New Zealand was the leader, rising 3.3% on Tuesday.
The airline had announced on Monday that New Zealand’s former Prime Minister John Key - who stepped down as the country’s leader in a shock resignation late last year - would join its board from September.
Both of the down under dollars were stronger against the greenback, with the Aussie last ahead 0.08% at AUD 1.3277 and the Kiwi advancing 0.19% to NZD 1.4449 per $1.