Geopolitical concerns remained a drag on risk sentiment after U.S. military strikes in Syria last week and recent missile tests by North Korea. China and South Korea have reportedly agreed to impose tougher sanctions on North Korea if it carries out nuclear tests and the U.S. is moving an aircraft carrier to waters off the Korean peninsula. North Korea is "ready to react to any mode of war desired by the U.S.," state-run Korean Central News Agency quoted a foreign ministry spokesman as saying.
In France, polls for many weeks have been showing centrist Emmanuel Macron and far-right leader Marine Le Pen on track to top the first round of voting on 23 April and go through to a 7 May runoff.
Meanwhile, industrial production in the eurozone dropped unexpectedly in February from the month before, led by falling energy output, the European Union's statistics agency said. Output of the eurozone's factory, mines and utilities decreased by 0.3% from the month before, but rose by 1.2% from February last year, Eurostat said.
Among Asian bourses
Australia Shares hit fresh two-year high
Australian equity market advanced for third straight session, hitting a fresh two-year high as energy and big banks stocks gained ground. At the close, the benchmark S&P/ASX 200 index inclined 0.36% to 5,934.20.
Shares of energy sector inclined on tracking a rise in global oil prices, due to Middle East supply concerns. Crude oil climbed to a five-week high on Tuesday, underpinned by a shutdown at Libya's largest oilfield over the weekend and on geopolitical uncertainty in Syria. The Libyan outage added fuel to a rally that started late last week after the United States fired missiles at a Syrian government air base. While Syria produces only small volumes of oil, the Middle East is home to more than a quarter of the world's oil output. Woodside Petroleum was up 1.5% to A$33.71, while Oil Search gained 0.8% to A$7.55.
Financials accounted for most of the market gains, with all four big four banks closed in positive territory, led by National Australia Bank, which was up 1.3% to A$33.09. Commonwealth Bank of Australia, the country's biggest mortgage lender, rose by 0.8% to A$86.20. Westpac Banking added 1.5% to A$34.95, and Australia & New Zealand Banking added 0.6% to A$31.88.
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Material stocks were mixed, with Rio Tinto higher by 2% to A$62.07 while Fortescue Metals shed 1.6% to A$6. Shares in BHP Billiton were down 1.4% to A$25.36 after the mining giant rebuffed a proposal by hedge fund Elliott Advisors to restructure the business by shedding its dual Australia-UK listing and spinning off its petroleum business.
Japan Stocks fall on geopolitical tensions
The Japan share market closed down, a with investor sentiment subdued by a yen's appreciation against the U.S. dollar and rising geopolitical tensions after North Korea on Tuesday denounced Washington's deployment of a naval strike group to the Korean peninsula, warning it was ready for "war". The deployment comes days after an American cruise missile strike on Syria that was widely interpreted as putting Pyongyang on warning over its refusal to abandon its nuclear ambitions. Uncertainty over France's presidential election this month and the rise of the far right also weighed on sentiment. At the close, the benchmark Nikkei Stock Average fell 0.27%, or 50.01 points, to sit at 18,747.87, while the broader Topix index of all first-section issues fell 0.3%, or 4.55 points, to 1,495.10.
Shares of export-related stocks declined on tracking yen appreciation against greenback. Currency traders pushed into the yen, which is seen as a safe investment in times of uncertainty or turmoil. The dollar slipped to 110.71 yen from 110.89 yen in New York. A stronger yen is seen as a negative for Japan's exporters as it can dent their profitability by reducing the value of overseas earnings. The dollar-yen rate also weakened in response to US Federal Reserve chair Janet Yellen's saying the central bank would keep to its plans to raise interest rates only gradually.
Isuzu Motors fell 1.3% to 1,427 yen, Hino Motors shed 1.2% to 1,290 yen, and Panasonic Corp was down 0.4% at 1,266 yen.
Toshiba Corp declined 2.7% to 224 yen, as it faced a looming deadline Tuesday to publish a long-overdue earnings report. If Toshiba fails to release its financial results and regulators refuse to grant another extension, it faces the prospect of being delisted from Tokyo's bourse.
Financials' were also lower. Mizuho Financial Group decreased 0.8% to 194.70 yen, while Daiwa Securities Group sank 1.7% to 659.30 yen.
Bucking the downward trend, jewellery store operator Yondoshi Holdings rose 2.1% to 2,621 yen, after forecasting Monday an 11.8% rise in group net profit for the current business year through February.
China Stocks gain to 4-month high
The Mainland China equity market recouped early losses to finish at a 15-month high, with stocks related to the Xiong'an New Area being major gainers. The blue-chip CSI300 index rose 0.35% to 3,517.33 points, while the Shanghai Composite Index added 0.6% to 3,288.97 points.
Stocks related to the Xiong'an New Area expected to benefit from government plans announcement on 8 April 2017 to build Xiongan New Area, modeled on the Shenzhen special economic zone next to Hong Kong that helped kickstart China's economic reforms in 1980.
An index tracking major developers rose for fifth straight session, with developers operating in Beijing-Tianjin-Hebei area expected to benefit handsomely from the development of Xiong'an New Area.
Banks continued to drag on the market after the country's banking regulator said it had issued guidelines on risk control for lenders as authorities increased their efforts to contain risks from a rapid build-up in debt.
Hong Kong Stocks down on weak global cues
The Hong Kong stock market closed session down for fourth straight session in cautious trade, amid geopolitical uncertainties of East Asia. The benchmark index opened up 18 points at 24,280. It then moved down, and hit an intra-day low of 24,007 (down 255 points) at one stage. But A-share market rally help support the local sentiment. The benchmark Hang Seng index dropped 0.7% at the close, to 24,088.46, while the Hong Kong China Enterprises Index lost 0.9%, to 10,165.98. Turnover increased to HK$76.8 billion from HK$65 billion on Monday.
Shares of coal miners declined as Coal prices slumped nearly 4.8% on Tuesday, after China's customs department issued an official order telling trading companies to return their North Korean coal cargoes.
Energy stocks were the biggest losers in a board-based decline, with an index tracking the sector shedding 1.3%. Kunlun Energy (00135) plunged 4.5% to HK$7.59. It was the top blue-chip loser. The trio PetroChina (00857), Sinopec (00386) CNOOC (00883) slipped 1% to HK$5.68, HK$6.41 and HK$9.39.
Defense counters saw buying orders amid political turmoil. North Korea official news agency said the US deployed its aircraft carrier Carl Vinson in Korean peninsula demonstrated that its ambition to invade North Korea. COMEC (00317) gained 1.4% to HK$17.62.
Sensex, Nifty snap three-day losing streak
Key benchmark indices settled with decent gains despite a weak trend witnessed in most of the global markets. The barometer index, the S&P BSE Sensex, rose 212.61 points or 0.72% to settle at 29,788.35. The Nifty 50 index gained 55.55 points or 0.61% to settle at 9,237. Gains were led by index heavyweights ITC, ICICI Bank, Infosys and L&T. Key indices snapped three-day losing streak today, 11 April 2017.
Suzlon Energy rose 1.55% after the company said it has won a repeat order of 50.40 megawatts (MW) wind power project in Karnataka from a leading independent power producer (IPP) company. The project will be completed by June 2017. Suzlon will execute the entire project on a turnkey basis and will also provide operation and maintenance services. The announcement was made after market hours yesterday, 10 April 2017.
NTPC advanced 0.33% after the company said that Bangladesh India Friendship Power Company (BIFPCL), a 50:50 joint venture company between NTPC and Bangladesh Power Development Board (BPDB) has achieved financial closure on 10 April 2017 to set up 1320 megawatts (MW) (2 x 660 MW) coal based Maitree Super Thermal Power Project at Rampal in Bagerhat District of Khulna division, Bangladesh.
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