Stocks in Asia Pacific were mixed on Tuesday as a private survey showed Chinese manufacturing activity in August expanding at its fastest pace in nearly 10 years.
In Japan, the Nikkei 225 edged lower 1.69 points to 23,138.07. The Japanese yen traded at 105.70 per U.S. dollar after seeing levels around 105.5 against the greenback yesterday.
In Hong Kong, the Hang Seng eked higher 7.8 points to 25,184.85.
Meanwhile, the Reserve Bank of Australia (RBA) on Tuesday maintained its targets for the cash rate and yield on three-year Australian Government bonds.
In a statement announcing the monetary policy decision, RBA Governor Philip Lowe also said the central bank would expand a program of funding for banks and extend its availability.
"Under the expanded Term Funding Facility, authorized deposit-taking institutions (ADIs) will have access to additional funding, equivalent to 2 per cent of their outstanding credit, at a fixed rate of 25 basis points for three years. ADIs will be able to draw on this extra funding up until the end of June 2021," Lowe said.
Commonwealth Bank of Australia’s Gareth Aird wrote in a note that the Term Funding Facility "provides a source of low-cost funding for the banking system that keeps borrowing costs low for households and businesses."
Following the RBA’s announcement, the Australian dollar last changed hands at $0.739 following a rise yesterday from levels around $0.735.
CHINA
The CSI 300 regained 25.9 points, or 0.5%, to 4,842.12.
The moves came as the Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) for August came in at 53.1. On Monday, China’s official manufacturing PMI for August came in at 51.0, according to the country’s National Bureau of Statistics.
Following the release, the onshore Chinese yuan strengthened to 6.825 per dollar, as compared to levels above 6.84 against the greenback seen yesterday. Its offshore counterpart changed hands at 6.8245 per dollar.
Economic data releases from China have been watched by investors for signs of the country’s recovery from the coronavirus pandemic. PMI readings above 50 signify expansion, while those below that figure indicate contraction. PMI readings are sequential and indicate on-month expansion or contraction.
In other markets
In Singapore, the Straits Times Index added 6.04 points, or 0.2%, to 2.538.55.
In Korea, the Kospi recovered 23.38 points, or 1%, to 2,349.55.
In Taiwan, the Taiex index reached skyward 111.83 points, or 0.9%, to 12,703.28.
In New Zealand, the NZX 50 slumped 144.4 points, or 1.2%, to 11,739.16.
In Australia, the ASX 200 fell 107.06 points, or 1.8%, to 5,953.41.
