Asia report: Traders shrug off stateside sell-off, stocks close higher

Stock markets in Asia-Pacific were in the green on Tuesday, as investors shrugged off another sell-off stateside overnight.

In Japan, the Nikkei 225 was up 0.52% at 26,571.87, as the yen strengthened 0.35% on the dollar to last trade at JPY 144.24.

Tech investing giant SoftBank Group was down 0.71%, while robotics specialist Fanuc added 1.2% and Uniqlo owner Fast Retailing was 0.88% firmer.

The broader Topix index was 0.47% firmer by the end of trading in Tokyo, settling at 1,873.01.

On the mainland, the Shanghai Composite was up 1.4% at 3,093.86, and the technology-centric Shenzhen Component was 1.94% higher at 11,175.12.

Fresh data out of Beijing showed China’s industrial profits falling 2.1% year-to-date in August, compared to 1.1% in July.

Craig Botham at Pantheon Macroeconomics said the data echoed the industrial production data - a deterioration for mining, and especially for manufacturing, but an improvement for utilities, amidst “scorching weather” that boosted energy demand and imposed rationing on some industrial users.

“The main takeaway is how much pressure Chinese manufacturers remain under, despite the subsidies and tax cuts rolled out this year.

“We see little prospect of a revival in fortunes, given slowing domestic and external demand.”

South Korea’s Kospi managed gains of 0.13% to 2,223.86, while the Hang Seng Index in Hong Kong eked out a rise of 0.03% to 17,860.31.

Seoul’s blue-chip technology stocks were on the back foot, with Samsung Electronics up 0.56%, while SK Hynix lost 0.61%.

The moves higher in Asia came despite the World Bank slashing its growth forecasts for the region.

It lowered its 2022 full-year growth expectations for the East Asia and Pacific region to 3.2% from its previous projection of 5%, set in April.

“The slowing growth is mostly due to China,” the World Bank said in its statement, cutting its forecast for that country to 2.8% from 5%.

Oil prices were higher as the region went to bed, with Brent crude futures last up 1.56% on ICE at $85.37 per barrel, and West Texas Intermediate rising 1.62% to $77.95 on NYMEX.

In Australia, the S&P/ASX 200 was up 0.41% at 6,496.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 slid 1.93% to 11,214.49 after a public holiday on Monday.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.58% at AUD 1.5400, and the Kiwi advancing 1.117% to NZD 1.7534.

Reporting by Josh White at Sharecast.com.