Asian Markets Mostly Lower

Asian stock markets are trading mostly lower on Tuesday, following the broadly negative cues from European markets overnight and a lack of cues from Wall Street, as traders reacted to data that showed China’s services sector growth slowing to an eight-month low in August. However, announcement of new stimulus measures in China helped limit the downside. Asian markets closed mostly higher on Monday.

China’s top economic planner said it would establish a designated department to bolster the country’s faltering private economy. Embattled Chinese property giant Country Garden has also reportedly averted the threat of a possible default.

Traders also looked ahead to monetary policy decisions of major central banks, including the Reserve Bank of Australia, the US Federal Reserve, Bank of England and the European Central Bank.

The Australian stock market is notably lower on Tuesday, giving up the gains in the previous session, with the benchmark S&P/ASX 200 falling below the 7,300 level, following the broadly negative cues from European markets overnight, with losses across most sectors, led by mining and technology stocks. Traders reacted to domestic data showing business activity contracted again in August at the steepest fall in eight months.

They also cautiously await the Reserve Bank of Australia’s monetary policy later in the day, when the central bank is widely expected to keep rates on hold for a third straight month as inflation eases.

The benchmark S&P/ASX 200 Index is losing 40.10 points or 0.55 percent to 7,278.70, after hitting a low of 7,270.60 earlier. The broader All Ordinaries Index is down 45.20 points or 0.60 percent to 7,480.50. Australian stocks closed notably higher on Monday.

Among the major miners, BHP Group is losing almost 1 percent, Rio Tinto is declining more than 1 percent, Fortescue Metals is sliding almost 2 percent and Mineral Resources is slipping more than 2 percent.

Oil stocks are mostly lower. Santos and Woodside Energy are losing almost 1 percent each, while Beach energy is gaining almost 1 percent. Origin Energy is flat.

Among tech stocks, Afterpay owner Block and WiseTech Global are losing almost 1 percent each, while Appen and Xero are declining more than 1 percent each. Zip is gaining almost 2 percent.

Gold miners are mostly lower. Northern Star resources is losing almost 2 percent, Evolution Mining is declining almost 3 percent, Gold Road Resources is slipping more than 2 percent, Newcrest Mining is edging down 0.5 percent and Resolute Mining is sliding 5.5 percent.

Among the big four banks, National Australia Bank and ANZ Banking are edging down 0.3 percent each, while Westpac is losing almost 1 percent. Commonwealth Bank is flat.

In other news, shares in Tietto Minerals plunged almost 26 percent after the gold miner slashed its gold production guidance for the second half of 2023 from its newly opened West African mine.

In the currency market, the Aussie dollar is trading at $0.643 on Tuesday.

The Japanese stock market is modestly lower on Tuesday after opening in the green, snapping the six session winning streak, with the Nikkei 225 falling below the 32,900 level, following the broadly negative cues from European markets overnight, with weakness across most sectors, led by market heavyweights and financial stocks. The losses were limited after domestic data showed August business activity expanded at the fastest pace in three months.

The benchmark Nikkei 225 Index closed the morning session at 32,870.00, down 69.18 points or 0.21 percent, after hitting a low of 32,784.32 earlier. Japanese shares ended notably higher on Monday.

Market heavyweight SoftBank Group is edging up 0.3 percent, while Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Honda is edging down 0.4 percent and Toyota is declining almost 1 percent.

In the tech space, Advantest is losing almost 1 percent and Screen Holdings is edging down 0.2 percent, while Tokyo Electron is flat.

In the banking sector, Sumitomo Mitsui Financial is losing almost 1 percent, Mizuho Financial is declining more than 1 percent and Mitsubishi UFJ Financial is edging down 0.5 percent.

The major exporters are weak. Canon and Mitsubishi Electric are edging down 0.1 to 0.5 percent each, while Sony and Panasonic are losing almost 1 percent each.

Among the other major losers, JFE Holdings is plunging 8.5 percent.

Conversely, Sharp and Mitsui E&S are gaining more than 3 percent each.

In the currency market, the U.S. dollar is trading in the higher 146 yen-range on Tuesday.

Elsewhere in Asia, Hong Kong is down 1.6 percent, while New Zealand, China, Singapore, South Korea, Malaysia and Taiwan are lower by between 0.3 and 0.7 percent each. Indonesia is relatively flat.

The Wall Street was closed on account of Labor Day holiday on Monday. The shares closed mixed on Friday.

The major European markets moved to the downside on the day. The U.K.’s FTSE 100 ended down 0.16 percent, Germany’s DAX slipped 0.1 percent and France’s CAC 40 lost 0.24 percent.

Crude oil prices were subdued on Monday after ending last week at their highest in more than half a year on ongoing concerns about tight supplies. West Texas Intermediate Crude oil futures for October ended little changed at 85.48 a barrel.