Asia report: Stocks mixed as investors digest regional data
Asia-Pacific markets concluded trading with a mixed bag of outcomes on Tuesday, as some regions extended their gains from the previous day, buoyed by a resurgence in tech stocks on Wall Street.
Investors were also evaluating preliminary business activity data from Australia and Japan.
“Most Asian stock markets are experiencing gains, influenced by the positive performance of global markets and a reduction in concerns about a larger conflict in the Middle East following measured counterattacks by Iran and Israel,” said TickMill market analyst Patrick Munnelly.
“Traders are also taking advantage of buying opportunities as they await the release of various important US economic reports on personal income and spending.
“However, concerns are mounting in the markets regarding the possibility of the US Federal Reserve refraining from cutting interest rates throughout this year.”
Munnelly said speculation was arising that the next move in US rates could lean towards an increase.
“In the UK, March government borrowing surpassed expectations, leading to a £7bn overshoot in the full-year deficit for 2023-2024 compared to the Office for Budget Responsibility’s forecast.”
Markets finish mixed but little changed across region
In Japan, the Nikkei 225 edged up by 0.3% to reach 37,552.16, while the Topix index showed a modest increase of 0.14% to settle at 2,666.23.
Leading performers on Tokyo’s benchmark included Osaka Gas, jumping 4.84%, NTT Data rising by 3.26%, and Tokyo Gas, climbing by 2.79%.
Conversely, mainland Chinese markets experienced a downturn, with the Shanghai Composite slipping by 0.74% to 3,021.98, and the Shenzhen Component declining by 0.61% to 9,183.14.
Among the notable decliners in Shanghai were Chahua Modern Housewares, plunging by 9.97%, and Hunan Aihua Group, dropping by 9.91%.
Hong Kong’s Hang Seng Index managed gains of 1.92% to 16,828.93, fuelled by gains in Meituan, rising by 8.05%, WH Group climbing by 6.2%, and JD.com advancing by 5.97%.
South Korea’s Kospi index recorded a minor decline of 0.24% to reach 2,623.02, with Krafton dipping 8.11%, and HMM sliding 7.51%.
In Australia, the S&P/ASX 200 index posted a modest gain of 0.45% to settle at 7,683.50.
Top gainers in Sydney included Cleanaway Waste Management, soaring by 15.77%, and Iluka Resources, rising by 5.27%.
Meanwhile, New Zealand’s S&P/NZX 50 index experienced a slight setback, decreasing by 0.42% to 11,803.28.
Notable decliners in Wellington included Ryman Healthcare, slipping by 3.42%, and Oceania Healthcare, down by 3.28%.
In currency markets, the dollar was last 0.01% weaker on the yen to trade at JPY 154.83, while it dipped 0.05% against the Aussie to AUD 1.5498.
Conversely, the greenback managed a modest increase of 0.15% on the Kiwi to change hands at NZD 1.6919.
On the commodities front, Brent crude futures were last up 0.98% on ICE to $87.85 per barrel, while the NYMEX quote for West Texas Intermediate also increased 0.98% to $82.70.
Business activity readings rise in Japan, Australia
In economic news, flash figures from au Jibun Bank showed that business activity in Japan in April reached its highest level in eight months.
The country's composite purchasing managers index (PMI) surged to 52.6, a significant improvement from March's 51.7, indicating a notable uptick in economic expansion.
Japan's manufacturing PMI also showed improvement, coming in at 49.9 compared to March's 48.2, signalling a softer decline.
Meanwhile, the services PMI stood at 54.6, up from 54.1 in March, reflecting strong growth in the services sector.
Similarly, Australia saw a surge in business activity during April, marking its fastest expansion in 24 months.
According to flash figures from S&P Global, the country's composite PMI rose to 53.6, compared to 53.3 in March.
Although the manufacturing PMI climbed to 49.9 from 47.3, just falling short of the expansion threshold of 50, it still indicated a significant improvement.
However, the services PMI experienced a slight dip, slipping to 54.2 from 54.4 in March.
Elsewhere, Singapore's inflation rate dipped to its lowest level since September 2021, coming in at 2.7% for March.
The decrease from February's 3.4% rate was below economists' expectations of 3%.
Singapore’s core inflation rate, which excludes accommodation and private transport prices, also saw a decline to 3.1% from 3.6% in February, reflecting subdued inflationary pressures.
Reporting by Josh White for Sharecast.com.