Australian shares finished higher Tuesday after a tame inflation reading spurred hopes for a rate cut, while Japanese stocks declined as a strong yen pressured exporters.
In Japan, the Nikkei 225 Index slid 74.13 points, or 0.8%, to 9,468.04
In Hong Kong, the Hang Seng Index regained 52.77 points, or 0.3%, to 20,677.20
The overall performance in Asia was mixed a day after political uncertainty in the euro-zone drove U.S. and European stocks lower Monday, with failed budget talks that resulted in the collapse of the Dutch government stoking fresh fears about Europe’s political and economic problems.
Australia’s S&P/ASX 200 index reversed early losses to end higher, with banks leading after weaker-than-expected inflation data spurred hopes that interest rates may be cut as early as next week.
Shares of Australia & New Zealand Banking Group Ltd. climbed 1.1% and Westpac Banking Corp. rising 1.5%.
Also in Sydney, shares of Wesfarmers Ltd. put on 1.8% after sales at its Coles grocery store chain climbed nearly 5% in the third quarter.
On the downside, Newcrest Mining Ltd. tumbled 3.6% as the gold miner cut its full-year output guidance after heavy rains hit production at key operations.
Japanese shares declined as the yen appreciated amid worries about Europe.
Sony Corp. dropped 1.7%, Nintendo Co. lost 1.6% and Mazda Motor Corp. shed 1.5%.
Financials also declined, with Mitsubishi UFJ Financial Group Inc. shares easing 2.3%, Sumitomo Mitsui Financial Group Inc. dropping 2.3% and Dai-ichi Life Insurance Co. sliding 2.1%.
Among Japanese advancers, Advantest Corp. surged 4.5% after a Nikkei report tipped strong quarterly sales and a return to operating profit for the company.
Stocks in Hong Kong and China drew some support from expectations of monetary easing by the mainland. The higher finish in Hong Kong came as European markets advanced Tuesday, and as U.S. equity futures pointed toward a likely higher opening on Wall Street.
In Hong Kong, Chalco added 1.3% and HSBC Holdings PLC gained 0.6% to recover some of the previous day’s losses.
CHINA
In Shanghai, the CSI 300 Index lost 1.17 points, or 0.04%, to 2,604.87
Shares of Agricultural Bank of China Ltd. rose 1.1%, property firm Gemdale Corp. advanced 1.8% and Aluminum Corp. of China Ltd., or Chalco, climbed 1%.
In other markets;
Korea’s Kospi Index fell 9.21 points, or 0.5%, to 1,963.42
The Taiex index in Taiwan added 17.75 points, or 0.2%, to 7,489.84
Singapore’s Straits Times Index progressed 12.02 points, or 0.4%, to 2,974.37
New Zealand’s NZX 50 Index tacked on 15.37 points, or 0.4%, to 3,519.86
Australia’s S&P/ASX 200 Index put on 8.01 points, or 0.2%, to 4,360.45
