Most countries are easing their monetary policies, with Britain, Australia and New Zealand cutting rates in recent weeks and Japan stepping up purchases of exchange-traded funds. The expected easing posture of central banks globally suggests the Fed may be slower to raise short-term interest rates and that could be reflected in the minutes.
Asian stocks have climbed 24% from their February low as lackluster data from the world's biggest economies fueled speculation central banks will continue to support them with stimulus and loose monetary policy.
Investor sentiment got a boost as oil prices remained near five-week highs on Tuesday, gaining 16% in a rally since early August as speculation intensified over potential producer action to support prices amid a glut. Prices advanced last week as Saudi Arabia signaled it's prepared to discuss stabilizing markets at informal OPEC discussions next month.
Among Asian bourses
Japan Market closed down
The Japan share market declined, weighed by disappointing Japanese second-quarter GDP figures and a stronger yen. Trading was also thin with many investors away for Japan s week-long Obon holiday. The Japanese growth figures missed economist expectations for a modest 0.2% expansion, as weak exports and a fall in business spending held back activity. Total 32 out of 33 TSE sectors declined, with Real Estate, Insurance, Securities & Commodities Futures, Construction, Metal Products, and Precision Instruments issues being major losers. The 225-issue Nikkei stock average stumbled 273.05 points, or 1.62%, to finish at 16596.51. The Topix index of all first-section issues ended down 18.16 points, or 1.38%, at 1298.47.
Cyberdyne Inc., a Japanese maker of robot exoskeletons for patients with spinal difficulties, tumbled 6.8% after short-seller Citron Research said the company's stock is poised to plunge. The report is malicious and contains factual inaccuracies, Cyberdyne Chief Financial Officer Shinji Uga said.
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Pachinko-machine maker Sankyo Co. slid 3.4% after SMBC Nikko Securities Inc. cut its target price on the stock.
Sony Corp. lost 0.2% after rising by as much as 1.4%. Fitch Ratings revised its outlook on the consumer electronics maker to positive, citing higher margins in its non-financial businesses and the management's commitment to improve profitability.
ASX200 falls 0.14%
Australian share market finished lower in subdued trade, as weakness in consumer discretionary, telecom, utilities, and financial stocks were more than offset by gains in materials & resources and energy players. At close of trade, the benchmark S&P/ASX 200 index declined 8 points, or 0.14%, to 5532. The broader All Ordinaries declined 8.10 points, or 0.14%, to 5625.70.
The banks and financial stocks declined, with top four lenders leading downtrend. ANZ Banking Group declined 0.1% to A$26.58, Commonwealth Bank of Australia 0.4% to A$76, Westpac Banking Corp 0.2% to A$29.71, and National Australia Bank 0.6% to A$27.04.
Energy stocks were up, after benchmark oil prices rose on fresh hopes of OPEC members agreeing to a cap on supply. Woodside Petroleum added 1% to A$27.65, Oil Search 0.1% to A$7.38, and Santos 2.5% to A$4.90.
Mining stocks also edged higher after Monday's weak session, with BHP Billiton up 0.5% to A$20.25 ahead of its results which were announced after the market's close. Meanwhile Rio TInto rose 0.9% to A$48.46 and Fortescue Metals gained 1.8% to A$4.52.
China Market falls on profit booking
Mainland China stock market closed down, amid profit booking after the benchmark indices jumped to their highest in more than seven months on Monday. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.45%, to 3378.25. The Shanghai Composite Index declined 0.49%, to 3110.04 points while the Shenzhen Composite index closed 0.67% up at 2036.80 points.
China stocks jumped to their highest in more than seven months on Monday as investors bet that disappointing economic data for July would prod Beijing to unleash fresh stimulus. China reported weaker-than-expected investment, lending, retail spending and factory output data on Friday, on top of weak trade numbers, keeping alive hopes the government will roll out more support measures this year to meet its ambitious economic growth targets.
The banking sector dropped 2.3% on profit-taking, following the previous session's jump. But real estate stocks remained strong, with an index tracking the sector rising 2% to fresh seven-month high, bringing gains so far this month to 26%. Bellwether Vanke jumped 7% to an all-time high.
Hong Kong Stocks closed flat
The Hong Kong stock market closed flat after retreating from nine-month highs, as weak lead from regional market offset news of much-anticipated Shenzhen-Hong Kong stock trading link. The benchmark Hang Seng Index (HSI) opened up 75 points to 23,008. It then soared as much as 152 points to an intra-day high of 23,084, which was also a nine-month high. But the market lacked further momentum, and retreated to the negative territory at one stage, down 91 points to 22,841. The benchmark Hang Seng Index fell 21.67 points, or 0.09%, to 22910.84 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, dropped 0.90 point, or 0.01%, to 9707.99. Turnover decreased to HK$84.2 billion from HK$89.3 billion on Monday.
China Vanke (02202) gained 2.2% to HK$20.95 after Evergrande (03333) became its third largest shareholder. Evergrande edged up 0.7% to HK$5.91. Tencent (00700) put on 2.3% to HK$195.43 ahead of its earnings report tomorrow. Both Macquarie Research and Credit Suisse are optimistic towards Tencent's interim results.
Wheelock (00020) fell 2.9% to HK$42.05 after its interim net declined 29%. Macquarie Research downgraded the stock to "neutral", while Credit Suisse reiterated its "underperform" recommendation.
Elsewhere, Sunny Optical (02382) interim earnings soared 50%. Its shares surged 13.5% to HK$37.9 as both Morgan Stanley and Macquarie are bullish to the outlook for the optical products manufacturer.
Indian indices register small losses
Trading for the week began on a subdued note as losses for IT stocks and index heavyweights HDFC and Reliance Industries (RIL) pushed the two key benchmark indices lower. The barometer index, the S&P BSE Sensex, fell 87.79 points or 0.31% to settle at 28,064.61. The Nifty 50 index fell 29.60 points or 0.34% to setle at 8,642.55.
Index heavyweight Reliance Industries edged lower on reports the petroleum ministry has slapped a penalty of nearly $250 million on the company to make good the government's loss of "profit petroleum" owing to the firm's inability to meet the natural gas production targets from the Krishna-Godavari (KG) D6 block. Infosys edged lower after the company lost a contract from Royal Bank of Scotland (RBS) as RBS decided not to pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G). L&T moved higher after the company won a contract from the Maharashtra state government to convert Nagpur into an integrated smart city.
Hindalco Industries edged higher with the stock extending previous trading session's gains triggered by the company reporting strong Q1 June 2016 earnings. State Bank of India edged higher, with the stock extending previous session's gains triggered by the state-run bank reporting a smaller-than-expected increase in bad loans in Q1 June 2016. Sun Pharmaceutical Industries edged lower on reports that a foreign brokerage has downgraded the stock to neutral from buy, citing increased competition for the company's US subsidiary.
Elsewhere in the Asia Pacific region: New Zealand's NZX50 fell 1.1% to 7310.67. South Korea's KOSPI index dropped 0.1% to 2047.76. Taiwan's Taiex index fell 0.42% to 9110.35. Malaysia's KLCI was up 0.57% to 1699.89. Indonesia's Jakarta Composite index rose 1% to 5371.85. Singapore's Straits Times index fell 0.3% to 2858.80.
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