Asian stocks turned in a mixed performance on Tuesday, as concerns over China’s growth prospects and a new political order in the country offset hopes of a Fed pivot.
The U.S. dollar stabilized at lower levels amid growing bets that a pronounced economic slowdown will push the Federal Reserve into softening its hawkish stance after a 75 basis point rate hike in November.
China’s Shanghai Composite Index finished marginally lower at 2,976.28 amid signs that the country won’t compromise on issues over Taiwan and the zero-COVID policy.
Hong Kong’s Hang Seng Index edged down 0.1 percent to 15,165.59 amid fears about Xi Jinping’s shocking move to tighten his grip on power at a major leadership reshuffle.
The Taiwan Weighted Index, which is heavily exposed to the Chinese market, tumble 1.5 percent to 12,666.12 on concerns over U.S. restrictions on semiconductor exports to China.
Japanese stocks rallied on earnings optimism after electric motor maker Nidec Corp. posted record second-quarter operating profits. The Nikkei 225 Index jumped 1.0 percent to 27,250.28, while the broader Topix closed 1.1 percent higher at 1,907.14.
Nidec shares surged 5 percent, while market heavyweight SoftBank Group climbed 3.8 percent. Tsuburaya Fields Holdings, a pachinko machine maker, soared 16.6 percent after raising its full-year operating profit forecast.
Seoul stocks ended little changed with a negative bias as caution set in ahead of earnings reports to be released by major companies later this week.
Chemical and steel companies led losses, with LG Chem tumbling 4 percent and Posco Holdings declining 3.4 percent.
Australian stocks eked out modest gains, led by tech and financial stocks. The benchmark S&P/ASX 200 Index rose 0.3 percent to 6,798.60 as investors awaited the country’s annual budget for cues on economic outlook.
The broader All Ordinaries Index edged up 0.2 percent to 6,993.70. Fuel refiner Ampol slumped 12.6 percent after missing its earnings estimates.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 Index ended the session 1.1 percent higher at 10,902.31.
U.S. stocks rose sharply overnight, as investors awaited tech earnings and weak PMI figures for October bolstered hopes that the Fed might pivot from its tightening of monetary policy.
The Dow climbed 1.3 percent and the S&P 500 added 1.2 percent to reach their best closing levels in a month, while the tech-heavy Nasdaq Composite advanced 0.9 percent.
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