Asian stocks generally fell on Tuesday, as a stronger yen weighed on the Japanese market, while the Reserve Bank of Australia’s decision to keep interest rates unchanged lifted the Sydney market.
In Japan, the Nikkei 225 index descended 131.59 points, or 1.1%, to close at 12,003.43, falling to its lowest level since March 6 amid a stronger yen
In Hong Kong, the Hang Seng Index returned from holiday to gain 68.19 points, or 0.3%, to 22,367.82
Japanese exporters dropped, technology stocks bearing the brunt of selling. Nikon Corp. dropped 3.2%, Canon Inc. lost 1.9% and Tokyo Electron Ltd. slid 3.7%.
The yen strengthened against the U.S. dollar ahead of the Bank of Japan’s much-anticipated policy meeting later this week, as investors speculated about whether the central bank will be able to meet the market’s expectations for looser policies.
Prime Minister Shinzo Abe acknowledged Tuesday the Bank of Japan’s challenge in achieving a 2.0% price rise target in two years.
The U.S. dollar fell below ¥93 in early trading for the first time since March 6, and was at ¥93.13 as Asian markets closed, compared with ¥93.21 late Monday in New York.
In Sydney, investors digested the Reserve Bank of Australia’s policy decision. The RBA left its benchmark cash rate target at 3.0% for the third-straight month as it signaled confidence that a yearlong string of cuts is reviving activity across the economy.
The Australian dollar strengthened after the RBA’s announcement, at $1.0465 U.S. compared with $1.0422 U.S. late Monday in New York.
Hong Kong was shut on Monday for a holiday and will close Thursday for the tomb-sweeping festival, while mainland markets will break for the same holiday from Thursday and reopen next week.
CHINA
Chinese markets edged lower, with many investors staying on the sidelines ahead of key first-quarter economic data out of the mainland next week, and with the current trading week cut short by holidays.
The Shanghai CSI 300 Composite 300 index fell 6.80 points, or 0.3%, to 2,486.39
Pharmaceutical stocks fell in China on fears that government price reforms for pharmaceuticals might cut into profits of drug distributors. Shanghai Fosun Pharmaceutical (Group) Co. Ltd. fell 3.3% and Guangzhou Pharmaceutical Co. Ltd. lost 2.8%.
In other markets;
In Korea, the Kospi Index slumped 9.84 points, or 0.5%, to 1,986.15
In Taiwan, the Taiex Index picked up 13.94 points, or 0.2%, to 7,913.18
The Singapore Straits Times Index regained 10.01 points, or 0.3%, to 3,317.55
In New Zealand, the NZX 50 returned from a long weekend to shed 11.34 points, or 0.3%, to 4,411.41
Australia’s ASX 200 gained 19.01 points, or 0.4%, to 4,985.51, also after returning from holiday.
