Most of Asia’s major stock markets ended flat to lower Tuesday, weighed down by weak global manufacturing data, although China’s stocks gained back their sparkle to end higher after setting fresh lows early in the session.
The Nikkei 225 Index in Japan shed 25.72 points, or 0.3%, to 9,432.46
In Hong Kong, the Hang Seng index forged ahead 32.12 points, or 0.2%, to 21,767.85
Asian markets had started off sharply weaker, but things turned more favorable after the Reserve Bank of Australia announced a quarter-point easing, bringing the base rate down to 3%, where it stood at the peak of the global financial crisis.
RBA Gov. Glenn Stevens said in a statement accompanying Tuesday’s decision that the central bank’s rate-setting board judged it was appropriate to ease rates further to "help to foster sustainable growth in demand and inflation outcomes consistent with the [RBA’s] target over time."
Société Générale economist Klaus Baader in Hong Kong said Australia was facing complex issues in dealing with a “substantial slowdown” as its mining-investment boom draws to a close.
The weakness in Asia followed on from a lower finish Monday on Wall Street, where stocks were pressured after a measure of U.S. factory activity unexpectedly contracted in November and as uncertainty lingered over the fiscal cliff of automatic tax hikes and spending cuts.
Euro-zone manufacturing activity also contracted in November, falling for a 16th month, with the headline index at 46.2, below the 50 level, which separates expansion from contraction.
The weaker European and U.S. numbers saw exporters slipping in Hong Kong on Tuesday, as Esprit Holdings Ltd. lost 2.9% and Belle International Holdings Ltd. declined 1.6%.
Luggage firm Samsonite International SA tumbled 1.7%. Airline Cathay Pacific Airways Ltd. slipped 1%, amid a CNBC report that flight attendants had set a 3 p.m. local-time deadline for management to respond to salary demands or face possible labour action.
Still, top Hang Seng Index component HSBC Holdings PLC managed to gain 0.6% to support the benchmark, while number-two component China Mobile Ltd. rose 1.4%.
Industrials and mining stocks were among the worst performers in Australia, with gold extractor Newcrest Mining Ltd. down 1.8%, copper miner PanAust Ltd. declining 2.9% and engineering group Leighton Holdings Ltd. down 1.6%
In Japan, tech exporters saw some weakness, with Hitachi Ltd. lower by 1.9%, and camera-maker Nikon Corp. falling 3.1%.
Advantest Corp. tumbled 3.6% after Crédit Suisse cut its rating on the firm to underperform from outperform.
Sharp Corp. rose 1.2%, however, after a Nikkei news report that it plans to join Qualcomm Inc. to develop an energy-efficient LCD smartphone panel.
South Korea trading saw heavyweight tech major Samsung Electronics Co. dip 0.1%, and LG Electronics Inc. move down 1.8%.
CHINA
The Shanghai CSI 300 Composite Index added 22.62 points, or 1.1%, to 2,131.47
Other airlines traded mixed in Shanghai, as Air China Ltd. added 0.2% and China Eastern Airlines Corp. slipped 1.5%.
In other markets
In Singapore, the Straits Times Index lost 3.62 points, or 0.1%, to 3,062.12
Korea’s Kospi index docked 4.84 points, or 0.3%, to 1,935.18
Taiwan’s Taiex Index gained 1.07 points to 7,600.98
New Zealand’s NZX 50 dropped 33.40 points to 4,015.69
Australia’s ASX Index slid 27.93 points, or 0.6%, to 4,503.57
