Asian Shares Mixed Ahead Of Fed Meeting

Asian stocks ended mixed on Monday as investors awaited the outcome of this week’s Federal Reserve meeting for any comments about rising yields and the U.S. economic outlook.

Chinese shares fell sharply as an ongoing crackdown on technology companies and tightening financial conditions sapped investor confidence. Traders also reacted to a slew of data painting a mixed picture of the world’s second-largest economy.

The benchmark Shanghai Composite Index slumped 33.13 points, or 1 percent, to 3,419.95. Hong Kong’s Hang Seng Index edged up 0.3 percent to 28,833.76 as Xiaomi Corp. shares surged after a temporary halt to a U.S. ban.

Industrial production in China jumped 35.1 percent year-on-year in the period including January and February, the National Bureau of Statistics said, beating forecasts for an increase of 30 percent following the 7.3 percent gain in the previous month.

The bureau also said that fixed-asset investment was up an annual 35 percent – shy of expectations for 40 percent. Retail sales spiked an annual 33.8 percent, exceeding expectations for 32 percent after rising 4.6 percent in the previous month. The jobless rate came in at 5.5 percent, up from 5.2 percent previously.

Japanese shares edged up slightly after data showed the value of core machine orders in Japan slipped a seasonally adjusted 4.5 percent sequentially in January – exceeding expectations for a decline of 5.5 percent following the upwardly revised 5.3 percent increase in December. On a yearly basis, core machine orders climbed 1.5 percent.

The Nikkei 225 Index inched up 49.14 points, or 0.2 percent, to 29,766.97, while the broader Topix closed 0.9 percent higher at 1,968.73. Cyclical stocks rose on hopes of a faster economic recovery in the United States, while tech stocks succumbed to selling pressure.

Ship builder Mitsui E&S Holdings surged 7.8 percent, while shipping firms Kawasaki Kisen and Nippon Yusen climbed 7 percent and 4.7 percent, respectively.

Aviation Company ANA Holdings gained 4.4 percent and Japan Airlines added 3.8 percent. E-commerce firm Rakuten soared 24 percent after it announced a capital tie-up with postal giant Japan Post Holdings. Shares of the latter advanced 2.5 percent.

Automakers Toyota and Honda rose 2-3 percent, while banks Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group added around 4 percent each.

On the flip side, heavyweight SoftBank Group declined 2.5 percent. Tokyo Electron fell 1.6 percent and Advantest gave up 1.3 percent in the tech space.

Australian markets swung between gains and losses before finishing marginally higher. Qantas Airways surged 3.8 percent on news that Singapore and Australia are discussing the possibility of setting up an air travel bubble.

The big four banks ended flat to slightly higher ahead of RBA policy meeting minutes due Tuesday, with governor Philip Lowe saying the central bank would continue to support the economic recovery from the coronavirus pandemic.

Mining heavyweight Rio Tinto fell 2.2 percent and Fortescue Metals Group lost 4.1 percent on lower iron ore prices, while gold miners Evolution Mining and Newcrest gained 2.5 percent and 1.4 percent, respectively. Technology stocks underperformed, with Afterpay tumbling 4.5 percent.

Seoul stocks ended a choppy session lower as benchmark 10-year Treasury yields hit 1.6 percent once again, reviving concerns of earlier-than-expected post-pandemic inflation. The benchmark Kospi slipped 8.68 points, or 0.3 percent, to 3,045.71.

Tech stocks paced the decliners, with Samsung Electronics losing 1.2 percent and SK Hynix giving up 2.5 percent. Among the prominent gainers, LG Chem rallied 2.3 percent and Kia Motors jumped 3.6 percent.

New Zealand shares rose sharply after Infratil said it expects gross proceeds of NZ$1.93 billion ($1.4 billion) from the sale of its 65 percent stake in windfarm owner Tilt Renewables. The benchmark NZX-50 Index climbed 165.49 points, or 1.3 percent, to 12,592.26, while shares of the infrastructure investor jumped 3.6 percent.

The services sector in New Zealand continued to contract in February, albeit at a slower pace, the latest survey from BusinessNZ showed, with a Performance of Services Index score of 49.1, up from 48.0 in January.

U.S. stocks ended mixed on Friday as rising yields after the passage of a $1.9 trillion stimulus bill and positive economic data reinforced expectations the economy was headed to a high-growth recovery.

The Dow climbed 0.9 percent to extend its winning streak for the sixth day and close at a fresh record high. The S&P 500 inched up 0.1 percent to a new record closing high, while the tech-heavy Nasdaq Composite index gave up 0.6 percent.

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