Asian Shares Mostly Higher In Cautious Trading

Asian stocks ended mostly higher on Tuesday as China recovery hopes outweighed concerns about further increases in U.S. interest rates.

Chinese shares fluctuated before finishing higher ahead of a reading on the Purchasing Managers’ Index (PMI) due to be released on Wednesday.

The benchmark Shanghai Composite Index closed 0.7 percent higher at 3,279.61, while Hong Kong’s Hang Seng Index dropped 0.8 percent to 19,785.94 after data showed exports plummeted nearly 37 percent in January – marking their worst drop in 70 years.

In another development, the city’s Chief Executive John Lee announced plans to drop its mask mandate starting March 1.

Japanese shares gave up early gains to end on a flat note as factory output posted its biggest fall in eight months due to declining overseas demand.

The Nikkei 225 Index and the broader Topix both finished marginally higher at 27,445.56 and 1,993.28, respectively. While shipping firms led losses, real estate and technology stocks closed mostly higher.

Japan Post Bank advanced 1.7 percent after Japan Post Holdings said it would reduce its stake in the banking unit.

Seoul stocks posted modest gains, led by large-cap financials and tech stocks. The Kospi edged up 0.4 percent to close at 2,412.85.

Australian markets ended higher after data showed retail sales rose more than expected in January. The benchmark S&P/ASX 200 Index gained 0.5 percent to settle at 7,258.40, while the broader All Ordinaries Index ended 0.5 percent higher at 7,458.

Mining and energy stocks topped the gainers list after the release of positive U.S. economic data.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index climbed 0.9 percent to 11,894.58.

U.S. stocks finished mostly higher overnight as investors sought bargains after steep losses last week.

The Dow inched up 0.2 percent, the tech-heavy Nasdaq Composite rose 0.6 percent and the S&P 500 added 0.3 percent after the release of mixed readings on durable goods orders and pending home sales.

All the three indexes closed well off their session highs as Treasury yields moved off the day’s lows on uncertainty about where the economy and interest rates are headed.

Market Analysis