Asian Shares Move Mostly Higher In Cautious Trading

Asian stocks rose broadly on Tuesday, though the upside remained capped due to caution over the tightening of U.S. monetary policy.

Investors kept an eye on upcoming U.S. inflation data amid heightened expectations for a half-point interest rate hike by the Federal Reserve in March.

Chinese shares ended higher despite rising tensions between the world’s two largest economies. The benchmark Shanghai Composite Index climbed 23.05 points, or 0.7 percent, to 3,452.63.

Healthcare companies sold off after the U.S. Commerce Department added pharmaceutical group WuXi Biologics to its “unverified” list for receiving U.S. exports.

Hong Kong’s Hang Seng Index dropped 250.06 points, or 1 percent, to settle at 24,329.49. Hong Kong’s IHS Markit SAR Purchasing Manager’s Index (PMI) fell to 48.9 in January from 50.8 in December, data showed earlier in the day.

Japanese shares ended slightly higher as investors reacted to a string of positive earnings results. The Nikkei 225 Index inched up 35.65 points, or 0.1 percent, to 27,284.52, while the broader Topix closed 0.4 percent higher at 1,934.06.

Marine transportation, farm and fishery, and air transportation issues topped the gainers list. Musical instrument maker Yamaha Corp. rallied 3.2 percent after announcing positive earnings.

Australian markets rallied, as iron ore prices rose on demand optimism from China and Macquarie Group reported a record third quarter.

The benchmark S&P/ASX 200 Index jumped 75.90 points, or 1.1 percent, to 7,186.70, while the broader All Ordinaries Index ended up 74.80 points, or 1 percent, at 7,489.

Mining heavyweight BHP surged 3.7 percent and Rio Tinto climbed 2.2 percent after reports that China is moving swiftly to expedite infrastructure projects.

Investment bank Macquarie Group rallied 3.9 percent after saying it would benefit from an increase in interest rates around the world. Insurer Suncorp Group soared 5.5 percent after its first-half cash earnings beat analysts’ estimates.

Seoul stocks ended largely unchanged with a positive bias after the U.S. tightened export regulations on China.

Market bellwether Samsung Electronics rose 0.7 percent and No. 2 chipmaker SK Hynix advanced 1.6 percent, while bio giant Samsung Biologics surged 4.9 percent as the country reported a record high in daily Covid-19 cases.

New Zealand shares eked out modest gains, with travel stocks rising after Australia announced it would fully reopen its borders to all vaccinated visa holders from February 21.

The benchmark NZX 50 Index rose 39.78 points, or 0.3 percent, to 12,319.34. Air New Zealand surged 4.7 percent and Serko added 2.9 percent.

U.S. stocks gave up early gains to end mostly lower overnight as Meta Platforms continued to fall after its bleak forecast last week and amid data privacy issues with the European Union.

The Dow finished marginally higher, while the S&P 500 and the tech-heavy Nasdaq Composite Index shed 0.4 percent and 0.6 percent, respectively.