Asia report: Most markets higher as Oz keeps rates steady

Markets in Asia managed a rebound on Tuesday, after a red start to the week, as the Reserve Bank of Australia kept rates in the sunburnt country on hold.

Japan’s Nikkei 225 finished 0.47% firmer at 18,360.54, with the yen gaining strength against the dollar.

It was trading slightly weaker after the island nation went to bed, however, and was last 0.26% behind the greenback at JPY 114.15 per $1.

On the mainland, the Shanghai Composite lost 0.17% to 3,199.37 and the Shenzhen Composite added 0.16% to 2,071.44.

The People’s Bank of China set renminbi’s loose peg at CNY 6.8575 per $1 on Tuesday, stronger than its CNY 6.8870 fix on Monday.

Beijing allows the onshore yuan to trade 2% above or below the loose peg.

South Korea’s Kospi closed up 1.35% at 1,989.86, after the country’s finance ministry revealed plans to spend 68% of the 2017 budget in the first six months, in a bid to boost domestic growth.

The country’s political crisis was also back at the fore, as nine of South Korea’s big business leaders faced interrogation in a televised session in parliament.

Politicians were looking into whether leaders of such conglomerates as Hyundai Motor and Samsung faced pressure from president Park Geun-hye or her associate Choi Soon-sil to donate to specific foundations in return for special treatment.

Hong Kong’s Hang Seng Index added 0.75% to 22,675.15.

Oil prices continued to take a tumble after a weak finish during US hours, with Brent crude last down 0.07% at $54.90 per barrel, and West Texas Intermediate losing 0.45% at $51.56.

In Australia, the S&P/ASX 200 added 0.52% to 5,428.7, with industrials rising 1.17% while the materials subindex advanced 0.66%.

The country’s central bank held its official cash rate at 1.5%, as widely expected, in its last monetary policy session for the 2016 calendar year.

In its statement, the Reserve Bank added that the rising Australian dollar could be a spanner in the works of the country’s economic transition from a resources-based economy.

Across the Tasman Sea, New Zealand shares rose unfazed by Monday’s shock resignation from Prime Minister John Key ahead of next year’s general election.

The S&P/NZX 50 added 0.8% to finish at 6,910.37, led higher by outdoor and activewear manufacturer and retailer Kathmandu Holdings, up 3.8%.

One of the South Pacific’s preeminent casino operators, SkyCity Entertainment, rose 0.5% after it names John Mortensen to the newly-created role of group chief operating officer.

The down under dollars were both weaker against their American namesake, with the Aussie last off 0.39% at AUD 1.3435 and the Kiwi retreating 0.25% to NZD 1.4038 per $1.