Asia report: Stocks mostly lower as investors digest RBA minutes

Most stock markets closed lower in the Asia-Pacific region on Tuesday, pulling back from their positive moves on Monday, as investors pored through the minutes of Australia’s latest central bank meeting.

In Japan, the Nikkei 225 was up 0.65% at 29,961.68 with traders returning from a long weekend, as the yen strengthened 0.44% on the dollar to last trade at JPY 137.53.

Robotics specialist Fanuc was up 1.83%, Uniqlo owner Fast Retailing added 1.72%, and tech investing giant SoftBank Group was 1.42% firmer.

Those moves for SoftBank came after the Financial Times reported that it had paused its plans to list chip firm Arm in London amid the political turmoil being caused by the Tory leadership race.

The broader Topix index was ahead 0.54% by the end of trading in Tokyo, settling at 1,902.79.

On the mainland, the Shanghai Composite was 0.04% firmer at 3,279.43, and the technology-centric Shenzhen Component was 0.3% weaker at 12,494.77.

South Korea’s Kospi was 0.18% lower at 2,370.97, while the Hang Seng Index in Hong Kong lost 0.89% to 20,661.06.

The blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 1.62% and SK Hynix losing 0.99%.

Oil prices were on the back foot as the region went to bed, with Brent crude futures last down 1.12% on ICE at $105.08 per barrel, and the NYMEX quote for West Texas Intermediate 1.16% weaker at $101.41.

In Australia, the S&P/ASX 200 was 0.56% lower at 6,649.60, after the minutes from the Reserve Bank’s latest meeting suggested more rate hikes were on the way, as policymakers said the current level was “well below” neutral.

The Reserve Bank of Australia tacked 50 basis points onto its cash rate in its July meeting, taking its official interest rate to 1.35%.

“The level of interest rates was still very low for an economy with a tight labour market and facing a period of higher inflation,” the minutes read.

“Members viewed it as important that inflation expectations remained well anchored and that the period of higher inflation be temporary.”

Across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.01%, or just 0.9 points, to 11,162.73, with fleet management technology company Eroad sliding 3.2%.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 1.28% at AUD 1.4493, and the Kiwi advancing 1.34% to NZD 1.6036.

Reporting by Josh White at Sharecast.com.