Asian stock markets were mixed Tuesday as markets traded on local cues, while steel companies gained on expectations for higher Chinese steel prices.
Japan’s Nikkei 225 Index settled back 75.32 points, or 0.8%, to close the session at 9,226
Hong Kong’s Hang Seng Index surged 46.02 points, or 0.2%, to 21,401.79
Steelmakers across the region were higher on hopes that they would benefit from higher steel prices in China.
In Tokyo, JFE Holdings was up 4.3% and Nippon Steel rose 3.1%, while Taiwan's China Steel gained 2.3% and Tung Ho Steel was 4.6% higher. In Hong Kong, Angang Steel and Maanshan Iron & Steel were up 3.8% and 4.8% respectively, while their mainland-listed counterparts climbed 1.7% and 6.1% respectively.
Advantest was down 0.4% and Kyocera shed 0.6%. Real estate developer Tokyo Tatemono rose 3.6% and Nippon Electric Glass rose 2.2% on news they would be included in the Nikkei 225 Share Average, while Clarion lost 8.1% as it was removed from the index. Mitsubishi Rayon, which was also removed, was up 1.8% in line with a rise by Mitsubishi Chemicals, as the two companies are to be merged.
Australian mining shares were mixed with BHP up 0.2%, Rio Tinto down 0.4% and Newcrest off 0.3%.
Investors were waiting for the formation of Australia's new government as independent lawmaker Bob Katter put his support behind the Liberal-National coalition, leaving the fate of the nation's leadership in the hands of two remaining independents Tony Windsor and Rob Oakeshott.
The two were expected hold a press conference early Tuesday and say which major party -- Prime Minister Julia Gillard's centre-left Labour Party or Tony Abbott's conservative Liberal-National coalition -- they will support.
That could have implications for the mining sector as Labour plans to impose a tax on mining sector profits, while Abbott's coalition has said if elected it would scrap such a tax.
Trade in Korea was cautious before the Bank of Korea's policy meeting on Thursday, which is also "quadruple-witching day"-- when stock index options and futures, plus stock options and futures all expire.
In currencies, the euro dropped to $1.2812 U.S., from $1.2879 U.S. late in Europe on Monday, and to Y107.81, from Y108.51. The dollar was at Y84.14 from Y84.22.
As widely expected, the Bank of Japan announced no change in its monetary policy after its board meeting and left interest rates on hold while keeping its economic view unchanged. The market was now watching if BOJ Governor Masaaki Shirakawa would hint at additional steps to ease monetary policy at his press conference later.
CHINA
Shanghai’s CSI 300 Index inched up 8.02 points, or 0.3%, to 2,983.11
The SHFE benchmark January rebar contract was up 0.5% at CNY 4,569 per ton after it rose 3.9% Monday on a report from the state-run Economic Information Daily on Monday, citing unnamed sources as saying 18 small-sized steelmakers in Wuan city, Hebei province were ordered to suspend steel production Sunday for between 20 days to a month in a bid to meet China's target to cut energy consumption.
Elsewhere;
Singapore’s Straits Times Index eked out a gain of 1.51 points to 3,036.09
Korea’s Kospi index backpedaled 4.68 points, or 0.3% to 1,787.74
Taiwan’s Taiex Index slid 6.55 points, or 0.1%, to 7,884.40
New Zealand’s NZX index moved 31 points, or 1%, higher to 3,174.14
Australia’s S&P/ASX 200 declined 2.30 points to 4,573.20
