Stocks in the Asian region were seen trading mixed on Tuesday as the market focus on the release of two main monetary policy statements from the Bank of Japan and the Reserve Bank of Australia with expectations of no change to the bank’s policies.
Asian Stocks
Hong Kong’s Hang Seng index rose 0.32% higher to trade at 23,389.62 points at the time of writing, while the Chinese mainland markets remained closed in celebration of National Day. The pro-democracy protests in Hong Kong eased as the demonstrators and the government agreed to begin formal talks.
In Japan, the benchmark Nikkei 225 index gained 0.04% to 15,897.31 points at the time of writing, while Tokyo’s Topix index was up 0.45% to 1,302.26 points. The nation’s yen was trading slightly lower against the greenback, trading around 108.93 yen versus 108.76 yen on Monday. Meanwhile the spotlight today as on two closely-watched monetary policy statements, one from the Bank of Japan (BoJ) which is expected to keep its monetary base by 60-70 trillion yen per year. However, analysts are concerned the bank may not be able to reach its 2% inflation target by April, marking two years since the bank began its stimulus program.
Exports in Japan that saw gains from the weaker yen included, Isuzu Motors was up by 0.9%, Fujitsu and Pioneer gained 1.4% each. While Electric companies saw major losses during the session on Tuesday, with Yokogawa Electric down by 2% and Mitsumi Electric declined 3%.
The South Korean Kospi index traded flat at 1,968.13 points at the time of writing. In Korea, Samsung added 1% on Tuesday following the announcement of a 60% decline in operating profit in its September quarter.
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Australia
In Sydney, the benchmark S&P/ASX 200 index slumped 1.02% to trade at 5,238.70 points, dragging financial stocks lower.
National Australia Bank lost more than 2% during the early hours of the session, while ANZ, Westpac and Commonwealth Bank of Australia declined by almost 1.5% each.
As for mining stocks, the world-largest miner Rio Tinto advanced by nearly 4% after reports revealed that the company turned down a takeover bid from rival Glencore. Fortescue Metals was up by 2%, while BHP Billiton gained 1%.
The Reserve Bank of Australia will be releasing its monetary policy statement later in the day and expected to make no changes to its current policy rate.
European Stocks
European stocks opened lower on Tuesday, weakening economic performances from Eurozone’s strongest economy Germany as the market awaits UK’s factory report.
The European Euro Stoxx 50 fell 0.83% to 3,112.50, while the French CAC 40 declined 0.65% to trade at 4,258.30. In Germany, the benchmark DAX index edged 0.86% to 9,130.40 and UK’s benchmark FTSE 100 lost 0.52% to 6,529.30.
Economic reports
Germany’s industrial output dropped 4% in August on a seasonally adjusted basis, compared to the 1.6% growth reported in July, according to the Federal Statistical Office.
On Tuesday, the UK’s industry report is expected to be released and expected to show no growth in August on a monthly basis and a 2.6% hike on an annual basis. While the UK’s manufacturing production is projected to climb 0.1% on a monthly basis and 3.3% on a yearly basis.
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