Asian Shares Mixed Despite China Stimulus Hopes

Business

Asian stocks gave up early gains to end mixed on Tuesday amid Europe’s worsening energy crisis and ahead of a European Central Bank meeting this week.

To cope with soaring energy prices, the European Commission is pushing for caps on wholesale gas prices.

Given the deterioration in the inflation outlook, either a 75 basis point or 50 basis point interest rate hike is possible at Thursday’s ECB policy meeting.

The dollar notched a fresh 24-year high against the Japanese yen, while oil edged lower after rising sharply overnight following an OPEC+ deal to cut output by 100,000 barrels per day in October.

China’s Shanghai Composite Index rallied 1.4 percent to 3,243.45 after senior officials from China’s central bank and leading ministries promised fresh measures to follow a stimulus package released in May.

The yuan rebounded from a more than two-year low against the U.S. dollar after the central bank slashed the amount of foreign-exchange deposits banks need to set aside as reserves for the second time this year.

Hong Kong’s Hang Seng Index ended 0.1 percent lower at 19,202.73 after a choppy session.

Japanese markets fluctuated before ending on a flat note. The Nikkei 225 Index finished marginally higher at 27,626.51, while the broader Topix slipped 0.1 percent to 1,926.58.

Textile maker Unitika soared 7.5 percent on news that its shares would be excluded from the Nikkei 225 in a regular reshuffle.

Seoul stocks ended a tad higher after falling for three straight sessions. The Kospi inched up 0.3 percent to 2,410.02.

Australian markets ended lower as the Reserve Bank of Australia increased the cash rate by 50 basis points as widely expected.

The benchmark S&P/ASX 200 Index slipped 0.4 percent to 6,826.50, while the broader All Ordinaries Index closed 0.3 percent lower at 7,055.90.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX-50 Index dipped 0.2 percent to 11,599.23. Heavyweight Fisher & Paykel Healthcare fell 2.3 percent to hit a two-year low.

The U.S. markets were closed Monday on account of the Labor Day holiday.

Source: Read Full Article