Asia report: Markets mostly higher as Australia stands pat on rates

Markets in Asia finished higher on Tuesday, with Australia stalling after its central bank stood pat on interest rates.

In Japan, the Nikkei 225 added 0.83% to 16,735.65, with the yen weakening 0.76% to JPY 102.42.

Markets on the mainland remained closed for the Golden Week of public holidays.

South Korea’s Kospi was up 0.55% to 2,054.86, while in Hong Kong the Hang Seng Index tacked on 0.45% to 23,689.44.

China Evergrande Group leapt 8.4% on the Hong Kong bourse, after it revealed a proposal for its property assets to split away to be listed as a separate entity on the Shenzhen stock exchange, in a bid for a better valuation.

Evergrande said it would be the controlling shareholder in Shenzhen Real Estate.

Beauty and cosmetics giants were leading the boards in Seoul, after China’s announcement on Friday that it would abolish consumption tax on non-luxury cosmetic products.

The rate of tax on luxury cosmetics and beauty products was revised down to 15% from 30% at the same time, with immediate effect.

Amorepacific - manufacturer of the popular Innisfree brand - was up 1.41% on Tuesday, with LG Household & Health Care adding 1.57%.

Cosmex, which has plans to open a new manufacturing facility in the People’s Republic, also rose, surging 6.27% on Tuesday.

Staying in Seoul, Samsung released more details about the planned initial public offering for its biopharmaceutical division BioLogics, saying it expects to raise up to KRW 2.25trn.

Oil prices were lower during Asian trading, with Brent crude last down 0.71% at $50.53 per barrel and West Texas Intermediate losing 0.83% at $48.41.

“The lack of bearish news, which traditionally includes higher crude oil production and downside risk to global demand, has left market-watchers nothing to lean on except last week's surprise cut in OPEC oil production,” noted analysts at OCBC Bank.

“Events into the weeks ahead may potentially cap oil gains - US oil inventory data tomorrow (market estimates show another week of gain) and higher OPEC production (Libya production rose and will continue to gain into the months ahead according to officials).”

The S&P/ASX 200 finished 0.1% higher at 5,484, barely moving after the Reserve Bank of Australia confirmed it would keep the official cash rate on hold at 1.5% as it assessed the outcome of its previous rate cuts in August and May.

“Going into the announcement ASX futures had only priced in a 2 percent odds of a cut whilst the AUD remained elevated to back up this consensus view,” noted ThinkMarkets senior market analyst Matt Simpson.

Gaming systems developer Aristocrat Leisure was up 1.5% to its highest price in nine years, after it emerged that the firm was penning a cross-licensing deal with International Game Technology in the United States.

New Zealand was the region’s odd one out, with the benchmark S&P/NZX 50 dropping 0.3% to 7,352.47 in light trading.

The self-listed stock exchange operator NZX finished the day down 1.9% after it emerged CEO Tim Bennett will leave at the end of 2016, earlier than was planned when he signed on in 2012.

It was a mixed picture for the down under dollars, with the Kiwi last 0.11% stronger at NZD 1.3734 against the greenback, but the Aussie weakening 0.1% to AUD 1.3047 per $1.