Asia report: Markets mixed, RBA upbeat on Australia outlook

Markets in Asia were mixed on on Tuesday, amid more quiet trading as a number of exchanges remained closed for holidays.

In Japan, the Nikkei 225 was up 1.05% at 20,614.07, as the yen weakened 0.2% against the dollar, to last trade at JPY 113.

On the mainland, markets remained closed due to public holidays, as they were on Monday.

South Korean traders also got another day off, while the Hang Seng Index in Hong Kong was ahead 2.25% at 28,173.21, as it resumed trading after being closed on Monday.

Oil prices were lower during Asian trading, with Brent crude last down 0.09% at $56.07 per barrel and West Texas Intermediate falling 0.14% to $50.51.

In Australia, the S&P/ASX 200 closed down 0.49% at 5,701.44, after the Reserve Bank of Australia stood pat on interest rates, leaving the official cash rate at a record low 1.5% for the 14th month.

The central bank’s governor Philip Lowe said it was expecting a pickup in economic growth going forward.

“The Australian economy expanded by 0.8% in the June quarter,” his statement read.

“This outcome and other recent data are consistent with the [Reserve] Bank’s expectation that growth in the Australian economy will gradually pick up over the coming year.”

Lowe also noted that there had been “more consistent” indications in recent months that non-mining investment was growing, along with a “large pipeline” of infrastructure investment.

There were still risks to the sunburnt country’s economy, however, with Lowe specifically fingering slow growth in real wages and concerning levels of household debt as putting a lid on spending.

The major banks were lower, with Australia and New Zealand Banking Group off 0.1%, Commonwealth Bank of Australia down 1.55%, National Australia Bank falling 0.69% and Westpac Banking Corporation 0.37% softer.

Across the Tasman Sea in New Zealand, the S&P/NZX 50 was up 0.06% at 7,933.42, with Metro Performance Glass rebounding 2% after hitting a record low in Monday’s session.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.1% at AUD 1.2789 and the Kiwi retreating 0.24% to NZD 1.3929.