Asian equities delivered a mixed performance on Tuesday as investors assessed political uncertainty and positioned for key US inflation readings this week that could shape the Federal Reserve’s next policy move
Hong Kong and China stocks
In Hong Kong, stocks climbed to their strongest level in almost four years, supported by expectations that the Fed will begin easing interest rates this month.
The Hang Seng Index rose 1.2 percent to close at 25,938.13, its highest finish since October 26, 2021.
The Hang Seng Tech Index advanced 1.3 percent.
By contrast, China’s Shanghai Composite slipped 0.51 percent to 3,807.29.
The decline followed data showing export growth slowed to the weakest pace in six months.
Semiconductor Manufacturing International Corp. (SMIC) dropped 10.3 percent after announcing an acquisition deal, weighing heavily on the benchmark.
Japan stocks retreat after rally
Japanese markets retreated after a strong rally in the prior session.
The Nikkei 225 briefly crossed the 44,000 mark for the first time before reversing course to end 0.42 percent lower at 43,459.29.
The broader Topix Index fell 0.51 percent to 3,122.12.
The pullback came amid political uncertainty following the resignation of Prime Minister Shigeru Ishiba, a fiscal hawk whose departure has fueled expectations of looser policy.
Despite the broader weakness, technology stocks were a bright spot, echoing strength in US peers.
Chip-testing equipment supplier Advantest surged 6.5 percent, while Tokyo Electron gained more than 2 percent.
Other regional stocks
In Seoul, the Kospi rallied for a sixth straight session, reaching a yearly high.
The index climbed 1.26 percent to close at 3,260.05, surpassing its previous record from July 30.
Gains were led by technology and chemical stocks amid optimism over potential shifts in tax policies seen as more market-friendly.
Indian equity benchmarks closed higher on September 9, with the Nifty ending just below the 24,900 mark.
The Sensex advanced 314.02 points, or 0.39%, to settle at 81,101.32, while the Nifty gained 95.45 points, or 0.39%, to close at 24,868.60.
The BSE Midcap and Smallcap indices added 0.2% each.
Among the Nifty’s top performers were Infosys, Dr. Reddy’s Labs, Wipro, Tech Mahindra, and Adani Ports.
US market on Monday
Tuesday’s trading in Asia followed a modest rebound on Wall Street.
On Monday, the Nasdaq Composite climbed 0.5 percent to a record close of 21,978.70, while the Dow Jones Industrial Average added 0.3 percent to finish at 45,514.95.
The S&P 500 advanced 0.2 percent to 6,495.15.
The gains reflected optimism that weaker-than-expected US employment data in August would strengthen the case for a Federal Reserve rate cut later this month.
According to the CME FedWatch tool, markets are pricing in an 88.2 percent chance of a quarter-point cut and an 11.8 percent likelihood of a half-point move.
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