Investing.com – Asian stock markets swung between small gains and losses on Tuesday, pausing after a five-day rally amid fears of an imminent tightening in Chinese monetary policy.
During late Asian trade, Hong Kong's Hang Seng Index dipped 0.1%, Australia’s ASX/200 Index fell 0.18%, while Japan’s Nikkei 225 Index eased up 0.07%.
In a statement on Monday, the People’s Bank of China reiterated that it would continue with its "prudent" monetary policy and stressed that inflation pressures remain high.
The Economic Information Daily, a newspaper backed by the Xinhua News Agency, said the PBOC statement has raised market expectations for a rate hike as soon as this weekend.
China Construction Bank saw shares fall 1.4%, Bank of China Hong Kong shares slipped 0.9%, while shares in China’s largest lender Industrial and Commercial Bank of China shed 1.1%.
But Hong Kong-listed retailers were stronger after the city’s retail sales rose 27.8% in May, with Esprit Holdings gaining 1.35% and Milan Station Holdings up 1.1%.
In Japan, Tokyo Electric Power Company saw shares jump 5.1% after it said a self-contained cooling system was operating without interruption at three Fukushima reactors damaged in the March disaster.
Shares in regional lenders performed strongly after Nomura Holdings raised its investment rating on the sector to ‘buy’ from ‘neutral,’ citing cheap valuations.
Bank of Yokohama shares gained 1.45%, Fukuoka Financial Group rose 1.75%, while shares in The 77 Bank climbed 1.65% after Nomura said the bank was its “top pick” on improved earnings prospects.
On the downside, shares in the country’s largest retailer Fast Retailing slumped 1.8% after it said that same-store sales figures for June slipped 0.5%.
The outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a loss of 0.2%, France’s CAC 40 futures dipped 0.1%, the FTSE 100 futures eased down 0.15%, while Germany's DAX futures edged 0.2% lower.
Later in the day, the euro zone was to release official data on retail sales, as well as revised data on service sector growth. Meanwhile, the U.S. was to publish government data on factory orders.
During late Asian trade, Hong Kong's Hang Seng Index dipped 0.1%, Australia’s ASX/200 Index fell 0.18%, while Japan’s Nikkei 225 Index eased up 0.07%.
In a statement on Monday, the People’s Bank of China reiterated that it would continue with its "prudent" monetary policy and stressed that inflation pressures remain high.
The Economic Information Daily, a newspaper backed by the Xinhua News Agency, said the PBOC statement has raised market expectations for a rate hike as soon as this weekend.
China Construction Bank saw shares fall 1.4%, Bank of China Hong Kong shares slipped 0.9%, while shares in China’s largest lender Industrial and Commercial Bank of China shed 1.1%.
But Hong Kong-listed retailers were stronger after the city’s retail sales rose 27.8% in May, with Esprit Holdings gaining 1.35% and Milan Station Holdings up 1.1%.
In Japan, Tokyo Electric Power Company saw shares jump 5.1% after it said a self-contained cooling system was operating without interruption at three Fukushima reactors damaged in the March disaster.
Shares in regional lenders performed strongly after Nomura Holdings raised its investment rating on the sector to ‘buy’ from ‘neutral,’ citing cheap valuations.
Bank of Yokohama shares gained 1.45%, Fukuoka Financial Group rose 1.75%, while shares in The 77 Bank climbed 1.65% after Nomura said the bank was its “top pick” on improved earnings prospects.
On the downside, shares in the country’s largest retailer Fast Retailing slumped 1.8% after it said that same-store sales figures for June slipped 0.5%.
The outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a loss of 0.2%, France’s CAC 40 futures dipped 0.1%, the FTSE 100 futures eased down 0.15%, while Germany's DAX futures edged 0.2% lower.
Later in the day, the euro zone was to release official data on retail sales, as well as revised data on service sector growth. Meanwhile, the U.S. was to publish government data on factory orders.