Major Asian markets traded higher Tuesday, digesting the surprise move by China's central bank to cut banks' reserve requirement ratio (RRR) to free up liquidity, and shrugging off fresh negative economic data from the mainland.
The Nikkei 225 recovered 58.75 points, or 0.4%, to 16,085.51.
In Hong Kong, the Hang Seng index jumped 295.53 points, or 1.6%, to 19,407.46
Before the markets opened, Japan released a slew of economic data that gave mixed signals. Household spending for January was down 3.1% on-year in price-adjusted real terms. The drop was steeper than the forecast for a 2.7% decline from a poll of economists. On the other hand, the seasonally-adjusted unemployment rate in January dropped to 3.2%, better than the market expectations for 3.3%
The yen maintained its strength against the U.S. dollar, remaining around 112. The pair traded down 0.1% at 112.53. Exporters closed mostly down, with Sony lower by 0.8%, but Honda erased losses to climb 0.6%. Usually, a stronger yen is a negative for exporters as it reduces overseas profits when converted into local currency.
In Australia, miners mostly rebounded, with Rio Tinto gaining 2.7%, Fortescue up 6.4% and BHP Billiton adding nearly 3%. Gold miner Newcrest closed up 4.5%, with spot gold trading up 0.3% at $1,241.10 U.S. an ounce
Elsewhere, the Reserve Bank of Australia kept its cash rate unchanged at a record low of 2% on Tuesday; the decision was widely expected by analysts. The Australian dollar didn't react much, fetching $0.7129 U.S., compared with around $0.7122 U.S. before the data.
Energy plays across Asia were mostly higher, with Santos adding 3.6%, Woodside Petroleum up 1.8% and Japan Petroleum gaining 2.5%
CHINA
The Shanghai CSI 300 index moved up 53.23 points, or 1.9%, to 2,930.69
Chinese government data showed activity in large factories contracted for the seventh straight month in February. The official manufacturing Purchasing Managers' Index (PMI) was at 49.0, lower than a forecast of 49.3. January's official manufacturing PMI reading was at 49.4. China's official services PMI fell to 52.7 in February, from 53.5 in January. A number below 50 indicates a decline, while one above suggests expansion.
The China Caixin manufacturing PMI, which tracks activities in smaller and medium-sized firms and is released after the official report, came in at a five-month low of 48.0 in February, down from 48.4 in January.
Mainland Chinese oil plays mostly retraced losses, with Sinopec closing up 3.5%
In other markets;
In Korea markets were shuttered for holiday.
In Taiwan, the Taiex Index returned from holiday to gain 74.53, or 0.9%, to 8,485.69
In Singapore, the Straits Times Index moved higher 15.88 points, or 0.6%, to 2,682.39
The NZX 50 in New Zealand added 50.03 points, or 0.8%, to 6,280.90.
In Australia, the ASX 200 gained 41.33 points, or 0.9%, to 4,922.25
