China shares eked out gains Tuesday even as most Asian markets retraced some of their recent rally, with traders digesting weaker-than-expected trade data from the mainland.
The Nikkei 225 lost 128.17 points, or 0.8%, to 16,783.15
Japanese automaker Suzuki Motor closed down 3.8%, following a report in the Nikkei that the company will issue 200 billion yen in zero-coupon convertible bonds and use most of the proceeds toward widening its operations in India.
Shares of Japan's Softbank closed up 1.7%, after the company announced reorganization plans to separate its domestic and overseas businesses with separate chief executives. This latest move to boost shareholder value comes after a $4.4-billion U.S. share buyback plan announced in February.
Before the market open, Reuters reported revised government data showed Japan's economy shrank at an annualized 1.1% in the final quarter of 2015. This was revised up from a preliminary reading of a 1.4% contraction.
On the currency front, the dollar struggled to find traction against major Asian currencies.
The Japanese yen strengthened against the greenback as the U.S. dollar/yen pair traded down 0.5% to 112.92.
Major Japanese exporters struggled on the back of the yen's strength, as shares of Toyota finished down 1.8%, Nissan fell 2.6% and Honda was lower by 1%. A strong yen is a negative for exporters as it usually reduces their overseas profits when converted into local currency.
In Hong Kong, the Hang Seng index fell 148.14 points, or 0.7%, to 20,011.58
Major miners in Australia gave up early gains, with Rio Tinto closing down 2.6%, BHP Billiton lower by 1.8% and iron ore producer
Fortescue slipping 9.4%, after surging nearly 24% Monday.
Fortescue announced prior to the market open that it was in talks with Vale to work together to blend iron ore to meet the demands of its customers. The announcement said there was also a possibility that could see the Brazilian miner take a 5-15% minority stake in the Australian miner.
Gold miners, on the other hand, saw an uptick, with shares of Newcrest closing up 1.3% and Alacer Gold adding 0.7%. Overnight, spot gold traded higher at $1,269.57 U.S. an ounce, but below Friday's peak of $1,279.60, the highest since Feb. 3, 2015.
Energy plays in the region were mixed, with Oil Search closing up by 0.3% and Woodside Petroleum finishing 0.3% lower. Japan's Inpex shed 0.7% while Japan Petroleum was up 0.3%.
CHINA
The Shanghai CSI 300 index inched up 2.83 points, or 0.1%, to 3,107.67
Sinopec shares were up 2.9%, while Petrochina slipped 0.5%
China's trade data also wasn't positive for sentiment, with February exports falling 25.4% in U.S. dollar terms, while imports fell 13.8%, with both declines wider than expectations. The drop in exports was the largest on-year drop since 2009
On Monday, official data released after the market close showed foreign currency reserves on the mainland fell to $3.2 trillion U.S. at the end of February, dropping from $3.23 trillion the previous month, marking the fourth straight month of declines, although the pace of outflows slowed substantially. The February figure was in line with analysts' expectations.
The Chinese yuan also strengthened marginally against the dollar, with the dollar/yuan pair trading lower by 0.1% at 6.5058. Prior to market open, the People's Bank of China set the yuan mid-point fix at 6.5041 against the U.S. dollar.
In other markets;
In Korea, the Kospi index dropped 11.75 points, or 0.6%, to 1,946.12
In Taiwan, the Taiex Index added 4.76 points, or 0.1%, to 8,664.31
In Singapore, the Straits Times Index dipped 44.74 points, or 1.6%, to 2,778.77
The NZX 50 in New Zealand gained 27.79 points, or 0.4%, to 6,446.72.
In Australia, the ASX 200 backtracked 34.85 points, or 0.7%, to 5,107.96
