Stocks in the Asia-Australian corridor were led by a strong advance on the Sydney exchange, after the country’s central bank delivered a surprise interest rate cut, with the resource sector in the lead.
The Nikkei 225 Index lopped off 10.46 points, or 0.1%, to 8,786.05
Markets in Hong Kong and Shanghai had the day off
The S&P/ASX 200 index climbed to a level it hasn’t seen since early May, after the Reserve Bank of Australia cut its benchmark interest rate by 0.25 percentage points. The decision marks the RBA’s third reduction in the cash rate target since May.
Resource firms were notable gainers in Sydney as the Australian dollar depreciated in the wake of the RBA decision.
BHP Billiton Ltd. added 1.3% and rival Rio Tinto Ltd. put on 1.2%, while energy producer Santos Ltd. climbed 2.4%.
The Australian dollar fell below the $1.03 U.S.-level after the RBA rate cut, briefly dropping as low as $1.0288 from around $1.0368 U.S. before the decision.
Arrium Ltd. leaped 5.2%, on top of a near-25% spike Monday, after the metals and mining company rejected an unsolicited takeover bid from a consortium including South Korea’s POSCO and Singapore-listed commodities trader Noble Group Ltd.. POSCO shares ended flat in Seoul.
Shares of Qantas Ltd. rose 2.5% on news the Australian carrier has sold its 50% holding in freight business StarTrack.
In Seoul, Samsung Electronics Co. rose 1.7% after the Wall Street Journal reported a U.S. court lifted a sales ban on the firm’s Galaxy Tab 10.1 tablet computer related to a patent dispute with Apple Inc.
In Tokyo, some retail stocks lost extended losses amid a subdued economic outlook.
Convenience store operators FamilyMart Co. and Lawson Inc. dropped 1.3% and 2%, respectively, while clothing chain operator Fast Retailing Co. skidded 1.5%.
Shares of Citizen Holdings Co. fell 1.6% following a Nikkei report that its first-half operating profit may fall short of earlier forecasts.
However, Softbank Corp. gained 2.7% on reports the firm will acquire Japanese mobile phone carrier eAccess Ltd.
In other markets
The Singapore Straits Times Index regained 21.28 points, or 0.7%, to 3,079.14
Korea’s Kospi Index slipped 0.18 points to 1,996.03
Taiwan’s Taiex Index added 42.96 points, or 0.6%, to 7,718.68
New Zealand’s NZX index reversed course and added 41.22 points, or 1.1%, to 3,871.25
Australia’s ASX Index picked up 44.36 points, or 1%, to 4,432.98
