Asian stocks mixed after China-fuelled rally

A man shelters from the rain in front of an electronic stock price indicator in Tokyo, Tuesday, Nov. 25, 2014. Asian stocks mostly fell Tuesday as the boost from China’s surprise interest rate cuts faded and investors awaited US economic data and an OPEC meeting. AP PHOTO/SHIZUO KAMBAYASHI

Hong Kong–Asian markets were mixed Tuesday after a Chinese rate cut had fueled a rally in the previous session, while Tokyo played catch-up following a long holiday weekend.

The yen made inroads against the dollar and euro after the Bank of Japan chief indicated he was concerned about the impact of a weak currency on the economy, while minutes showed policymakers split on last month’s stimulus boost.

Tokyo rose 0.29 percent, adding 50.11 points to finish at 17,407.62, while Seoul was slightly higher, gaining 1.67 points to 1,980.21.

Sydney shed 0.50 percent, or 27.0 points, to end at 5,334.8, while Hong Kong slipped 0.21 percent, or 49.23 points, to 23,843.91.

Shanghai rallied 1.37 percent, or 34.72 points, to close at 2,567.60–adding to a 1.85 percent rise Monday and the highest since August 2011.

Traders largely took their foot off the pedal after Monday’s surge that came on the back of China’s surprise decision last week to slash interest rates for the first time in two years, in a bid to kickstart growth.

Wall Street provided a positive lead Monday ahead of the release of US third-quarter growth figures later in the day as well as data on consumer confidence, home prices and business activity.

The Dow edged up 0.04 percent to its third straight record close and the S&P 500 gained 0.29 percent, also an all-time high. The Nasdaq tacked on 0.89 percent.

In foreign exchange markets the yen enjoyed a pick-up after BoJ governor Haruhiko Kuroda said policymakers were aware of the impact of its sharp decline on the world’s number-three economy.

Worry over yen weakness

The currency has tumbled to multi-year lows against the dollar and euro since the central bank expanded its stimulus program on Oct. 31.

“We will monitor (market movements) carefully, including their impact on the actual economy,” Kuroda was quoted by the Nikkei business daily as telling business leaders in a speech on Tuesday.

Also Tuesday minutes showed the bank’s policy board split 5-4 in favor of the ramped-up asset-purchasing, with some warning a weak yen would batter small domestic firms owing to soaring import costs.

Others questioned its likely ultimate impact on boosting growth.

In afternoon trade the dollar was at 117.90 yen, down from 118.25 yen in US trade, while the euro bought 146.48 yen compared with 147.10 yen in New York.

The single currency was also at $1.2421 against $1.2439.

However, the single currency is up from levels seen earlier Monday in Asia after the Ifo index of German business confidence rose this month, providing some welcome news from the eurozone’s biggest economy which has shown signs of struggling recently.

“The downturn in the German economy has ground to a halt for the moment at least,” said Ifo chief Hans-Werner Sinn.

Oil prices were mixed before a closely watched meeting of the OPEC cartel, which will decide whether to cut output to prevent prices falling further.

US benchmark West Texas Intermediate for January delivery fell five cents to $75.73 while Brent crude for January fell 38 cents to $79.30 in afternoon trade.

Gold was at $1,200.71 an ounce, compared with $1,195.75 late Monday.

In other markets:

— Taipei ended marginally lower, dipping 6.09 points to 9,116.24.

Taiwan Semiconductor Manufacturing Co. rose 0.36 percent to Tw$139.0 while smartphone maker HTC fell 0.37 percent to Tw$135.0.

— Wellington fell 0.53 percent, or 29.01 points, to 5,442.68.

Fletcher Building slipped 1.6 percent to NZ$8.17 and Chorus lost 2.0 percent to end at NZ$2.00, while Spark shed 2.9 percent to NZ$3.07.

— Manila closed 0.52 percent lower, giving up 38.28 points to 7,286.85.

Philippine Long Distance Telephone Co. fell 1.07 percent to 2,960 pesos while Aboitiz Power closed 0.60 percent down at 41.60 pesos.

— Singapore rose 0.13 percent, or 4.46 points, to 3,344.99.

Singapore Telecom gained 0.26 percent to Sg$3.90 while public transport firm ComfortDelgro fell 2.71 percent to Sg$2.51.

— Jakarta ended down 0.44 percent, or 22.82 points, at 5,118.95.

Bank Negara Indonesia rose 0.86 percent to 5,875 rupiah, while state miner Aneka Tambang fell 1.00 percent to 990 rupiah.

— Malaysia’s main stock index gained 0.26 percent, or 4.79 points, to close at 1,838.56.

Malayan Banking rose 0.74 percent to 9.59 ringgit, Public Bank added 0.77 percent to 18.44 while Sime Darby lost 0.10 percent to 9.70 ringgit.

— Bangkok rose 0.42 percent, or 6.66 points, to 1,596.80.

Bumrungrad Hospital gained 4.36 percent to 143.50 baht, while telecoms company True Corporation soared 6.14 percent to 12.10 baht.

— Mumbai fell 0.57 percent, or 161.49 points, to end at 28,338.05.

Diversified conglomerate ITC fell 4.99 percent to 355.70 rupees, while Bharat Heavy Electricals rose 2.95 percent to 265.20 rupees.