Shares in China rallied on hopes that Beijing will ease monetary policy to address the country’s slowest growth in years, but lower oil prices dragged down energy shares, knocking Hong Kong and Australia lower.
The Nikkei 225 index moved higher 75.92 points, or 0.4%, to 18,207.15,
The Hang Seng index in Hong Kong erased 86.39 points, or 0.4%, to 22,989.22. Markets in Hong Kong are closed for a holiday Wednesday.
Energy shares were among the hardest hit in Australia, with Woodside Petroleum falling 5%, Santos losing 3.1% and Origin Energy declining 2%.
The Hang Seng China Enterprises Index dropped 0.4%, as Hong Kong-listed state-owned Chinese oil producers PetroChina Co. Ltd. and China Shenhua Energy Co. Ltd. lost 1.5% and 3%, respectively.
These declines came after U.S. crude oil prices fell roughly 3% overnight after data showing China’s economy expanded at its slowest rate in six years in the third quarter and amid concerns about potential new Iranian supplies.
China’s economy grew by a better-than-expected 6.9% in the third quarter, but it was met with skepticism. It also fueled worries that Beijing could miss its 7% growth target for the year.
Slumping energy shares had capped gains in U.S. stocks overnight.
Japan shares were buoyed by expectations of easing from global policy makers and decent U.S. earnings. Central bankers will gather for policy meetings this week in Europe and next week in the U.S. and Japan.
Two financial units of state-owned Japan Post Holdings Co. priced their initial public offerings at the top of their proposed ranges Monday, reflecting strong retail demand for Japan’s biggest share offering in nearly two decades.
The Australian dollar rose to as high as $0.728 U.S. from $0.725 U.S., after the country’s central bank pointed to significant risks in property markets yet remained upbeat on the broader economy, according to minutes released from its policy meeting earlier in October.
Australia’s Oil Search fell 1.8% after it reported a 3% quarter-over-quarter fall in sales revenue to $379 million U.S. for the three months through September, despite record oil-and-gas production for the period due to the fall in oil prices.
CHINA
The CSI 300 in Shanghai gained 43.52 points, or 1.2%, to 3,577.70, buoyed by expectations for stimulus from China’s central bank, as well as gains in small-cap stocks.
A drop in oil prices heightened concerns about China’s economic slowdown for those investing in commodity plays reliant on Chinese appetite.
In China, small-cap consumer, I.T. and health-care stocks rose as Monday’s figures showed resilience in domestic consumption.
In other markets
The Kospi index in Korea gained 9.09 points, or 0.5%, to 2,039.36
Taiwan’s Taiex index was positive 22.1 points, or 0.3%, to 8,653.60
In Singapore, the Straits Times Index slipped 5.47 points, or 0.2%, to 3,019.03
The NZX 50 gained 60.66 points, or 1%, to 5,895.49
The ASX 200 Index dropped 34.13 points, or 0.7%, to 5,235.57
