Shares in Asia were mixed on Tuesday, with record gains in the US market overnight offset by a dip in oil prices and a firmer yen.
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The Nikkei stock Average dropped by 1.1% in early morning sessions before reversing to cover some of its losses finally settling for a 0.2% drop.
The S&P 500 Index climbed 0.3 per cent on Monday, regaining an all-time high and pushing valuations to 18.6 times estimated earnings.
Looking ahead, South Korea is set to release revised trade data that could dictate momentum for shares.
It was last 0.51% weaker at JPY 100.82 per $1.
But the benchmark Shanghai Composite Index fell 0.17 per cent, or 5.44 points, to 3,104.11, while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, slipped 0.05 per cent, or 1.05 points, to 2,042.22. Taiwan’s Taiex Y9999, -0.41% was down 0.3%, while Australia’s S&P/ASX 200 XJO, -0.13% slipped 0.2% as a downswing in oil hit commodity producers.
Mainland Chinese markets traded mixed, with the Shanghai composite down 0.34 percent while the Shenzhen composite was near flat at 2,038.32.
Mainland China’s second stock exchange, in the southern city of Shenzhen, was due to follow past year, but the launch was delayed by a market rout.
The Japanese yen has grown above 100 to the dollar for the second time this week as the U.S. currency’s campaign to escape a previous 3 month low that was stalled after the released Fed minutes signalled that officials were divided on the topic of how soon an interest rates hike should be performed.
“As the world economy is slowing down, many countries now need a cheaper currency to support share prices”.
Sharp shares were up 12.40 percent, after Taiwanese manufacturer Hon Hai completed its acquisition of the Japanese electronics maker earlier this week, following regulatory approval from China’s antitrust body. New York Fed President William Dudley said the central bank could potentially raise interest rates as soon as next month, warning investors that they are underestimating the likelihood of increases in borrowing costs.
Investors were digesting mixed reports on the health of the global economy and awaiting US data later in the week.
Dai-ichi Life Insurance, Komatsu, Inpex Corp, Nippon Steel & Sumitomo Metal and Sumitomo Heavy Industries rallied 5-8 percent, while Shiseido, Nissan Chemical Industries and Dainippon Screen Manufacturing dropped 2-4 percent. Mining giant BHP Billiton rallied 3.3 percent despite reporting its biggest annual loss amid writedowns and impairments.
Asian stocks climbed, trading at the highest level in a year, after USA shares regained records and a rally in crude futures bolstered commodity producers.
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Australian biotechnology firm CSL reported net profit after tax of $1.24 billion for the full year ended June 30, slipping from $1.38 billion booked in the previous year.
