Investing.com - Asian stock markets were mixed during late Asian hours on Tuesday, with shares in Australia ending little changed after the Reserve Bank of Australia cut its benchmark interest rate to a record low earlier in the session.
During late Asian trade, Hong Kong's Hang Seng Index was down 1.1%, Australia’s ASX/200 Index ended 0.1% lower, while Japan’s Nikkei 225 Index jumped 1%.
In Australia, the benchmark ASX/200 Index ended little changed after the RBA cut its benchmark interest rate to 2.5% from 2.75%, citing soft economic growth, tame inflation and a historically high level for the Australian dollar.
In its accompanying rate statement, RBA Governor Glenn Stevens said the Aussie dollar “has depreciated by around 15% since early April, although it remains at a high level.”
He added that further depreciation “would help to foster a rebalancing of growth in the economy.”
Stevens left the door open for further easing, saying “the inflation outlook could provide some scope to ease policy further, should that be required to support demand.”
Following the decision, the Australian dollar was higher against its U.S. counterpart, with AUD/USD rising 0.6% to trade at 0.8983.
The big four banks edged lower, with Australia's top lender, the Commonwealth Bank of Australia shedding 0.3%, while Westpac Banking Group and ANZ Banking Group lost 0.4% and 0.2% apiece. National Australia Bank shares dipped 0.1%.
Meanwhile, in Hong Kong, the Hang Seng was down sharply as index heavyweight HSBC Holdings saw shares tumble 4.5%.
HSBC shares sold off after Europe’s largest bank reported lower-than-expected first-half net profit on Monday. The bank added that the mainland Chinese market slowed unexpectedly in the first quarter of 2013.
Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Market players looked ahead to data scheduled for later in the week on China’s trade balance as well as a report on inflation and industrial production amid ongoing uncertainty over China’s economic outlook.
Elsewhere, in Tokyo, the Nikkei staged a sharp turnaround in afternoon trade to close higher as the yen weakened against the U.S. dollar, boosting sentiment.
USD/JPY rose to hit a session high of 98.54, reversing losses which took the pair to a daily low of 97.82. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Shares in automakers Mazda and Honda rallied 2.3% and 2% respectively, while Panasonic added 1.9%.
Looking ahead, European stock market futures pointed to a mildly lower open.
The EURO STOXX 50 futures pointed to a loss of 0.2% at the open, France’s CAC 40 futures dipped 0.2%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a loss of 0.2% at the open.
Germany was to release official data on factory orders later Monday and the U.S. was to produce data on the trade balance.
During late Asian trade, Hong Kong's Hang Seng Index was down 1.1%, Australia’s ASX/200 Index ended 0.1% lower, while Japan’s Nikkei 225 Index jumped 1%.
In Australia, the benchmark ASX/200 Index ended little changed after the RBA cut its benchmark interest rate to 2.5% from 2.75%, citing soft economic growth, tame inflation and a historically high level for the Australian dollar.
In its accompanying rate statement, RBA Governor Glenn Stevens said the Aussie dollar “has depreciated by around 15% since early April, although it remains at a high level.”
He added that further depreciation “would help to foster a rebalancing of growth in the economy.”
Stevens left the door open for further easing, saying “the inflation outlook could provide some scope to ease policy further, should that be required to support demand.”
Following the decision, the Australian dollar was higher against its U.S. counterpart, with AUD/USD rising 0.6% to trade at 0.8983.
The big four banks edged lower, with Australia's top lender, the Commonwealth Bank of Australia shedding 0.3%, while Westpac Banking Group and ANZ Banking Group lost 0.4% and 0.2% apiece. National Australia Bank shares dipped 0.1%.
Meanwhile, in Hong Kong, the Hang Seng was down sharply as index heavyweight HSBC Holdings saw shares tumble 4.5%.
HSBC shares sold off after Europe’s largest bank reported lower-than-expected first-half net profit on Monday. The bank added that the mainland Chinese market slowed unexpectedly in the first quarter of 2013.
Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Market players looked ahead to data scheduled for later in the week on China’s trade balance as well as a report on inflation and industrial production amid ongoing uncertainty over China’s economic outlook.
Elsewhere, in Tokyo, the Nikkei staged a sharp turnaround in afternoon trade to close higher as the yen weakened against the U.S. dollar, boosting sentiment.
USD/JPY rose to hit a session high of 98.54, reversing losses which took the pair to a daily low of 97.82. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Shares in automakers Mazda and Honda rallied 2.3% and 2% respectively, while Panasonic added 1.9%.
Looking ahead, European stock market futures pointed to a mildly lower open.
The EURO STOXX 50 futures pointed to a loss of 0.2% at the open, France’s CAC 40 futures dipped 0.2%, London’s FTSE 100 futures eased down 0.1%, while Germany's DAX futures pointed to a loss of 0.2% at the open.
Germany was to release official data on factory orders later Monday and the U.S. was to produce data on the trade balance.