Investing.com - Asian stock markets were mixed on Tuesday, as sentiment improved after data showed that China’s manufacturing activity grew in April while a 0.50% rate cut by the Reserve Bank of Australia gave a boost to domestic stocks, although euro zone debt concerns persisted.
During late Asian trade, Australia's S&P/ASX200 rose 0.75%, while Japan’s Nikkei 225 Index tumbled 1.78%.
Trading volumes in the region were subdued as markets in Hong Kong and mainland China remained closed for a public holiday.
Official data showed earlier that China’s manufacturing activity grew for the fifth consecutive month in April, hurting the case for policy makers to ease monetary policy.
The manufacturing purchasing managers’ index rose to 53.3 from 53.1 in March. Analysts had expected the index to rise to 53.6 in April.
On the index, results above 50 indicate expansion.
Meanwhile, the RBA unexpectedly cut its benchmark interest rate from 4.25% to 3.75%, a two-year low.
Commenting on the decision RBA Governor Glenn Stevens said the rate cut was “judged to be necessary in order to deliver the appropriate level of borrowing rates,” adding that “inflation will probably be lower than earlier expected” and within the RBA’s target range of 2% to 3%.
Australian lenders were broadly higher following the news. Shares in Commonwealth Bank Australia surged 1.58%, while Westpac banking Corp. and ANZ Banking Group added 0.57% and 0.29% respectively.
Woodside Petroleum was also on the upside, jumping 3.67% after the Perth-based petroleum production giant sold a stake in its Browse LNG project for USD2 billion, while mining group Bhp Biliton climbed 1.18% and Newcrest mining gained 0.30%.
Elsewhere, Europe-dependent exporters such as Toyota and Honda Motor turned sharply lower due to sustained concerns over the worsening of the debt crisis in the euro zone, after Standard & Poor’s downgraded 11 Spanish banks on Tuesday. Shares in Toyota plunged 3.48% and Honda plummeted 3.35%.
Yamada Denki also added to losses, sinking 10.29% after the Japanese home electronics retailer cut its earnings forecast, citing falling prices for its products and the end of a government subsidy for eco-friendly products.
Looking ahead, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a 1.60% plunge, France’s CAC 40 futures indicated a drop of 1.64%, Germany's DAX futures fell 0.59%, while London’s FTSE 100 futures lost 0.19%.
Later in the day, the U.S. was to release a closely watched report by Institute for Supply Management on manufacturing activity.
During late Asian trade, Australia's S&P/ASX200 rose 0.75%, while Japan’s Nikkei 225 Index tumbled 1.78%.
Trading volumes in the region were subdued as markets in Hong Kong and mainland China remained closed for a public holiday.
Official data showed earlier that China’s manufacturing activity grew for the fifth consecutive month in April, hurting the case for policy makers to ease monetary policy.
The manufacturing purchasing managers’ index rose to 53.3 from 53.1 in March. Analysts had expected the index to rise to 53.6 in April.
On the index, results above 50 indicate expansion.
Meanwhile, the RBA unexpectedly cut its benchmark interest rate from 4.25% to 3.75%, a two-year low.
Commenting on the decision RBA Governor Glenn Stevens said the rate cut was “judged to be necessary in order to deliver the appropriate level of borrowing rates,” adding that “inflation will probably be lower than earlier expected” and within the RBA’s target range of 2% to 3%.
Australian lenders were broadly higher following the news. Shares in Commonwealth Bank Australia surged 1.58%, while Westpac banking Corp. and ANZ Banking Group added 0.57% and 0.29% respectively.
Woodside Petroleum was also on the upside, jumping 3.67% after the Perth-based petroleum production giant sold a stake in its Browse LNG project for USD2 billion, while mining group Bhp Biliton climbed 1.18% and Newcrest mining gained 0.30%.
Elsewhere, Europe-dependent exporters such as Toyota and Honda Motor turned sharply lower due to sustained concerns over the worsening of the debt crisis in the euro zone, after Standard & Poor’s downgraded 11 Spanish banks on Tuesday. Shares in Toyota plunged 3.48% and Honda plummeted 3.35%.
Yamada Denki also added to losses, sinking 10.29% after the Japanese home electronics retailer cut its earnings forecast, citing falling prices for its products and the end of a government subsidy for eco-friendly products.
Looking ahead, the outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a 1.60% plunge, France’s CAC 40 futures indicated a drop of 1.64%, Germany's DAX futures fell 0.59%, while London’s FTSE 100 futures lost 0.19%.
Later in the day, the U.S. was to release a closely watched report by Institute for Supply Management on manufacturing activity.