Asian Stocks Reverse Initial Losses to Close Mixed

By Investors Hub

Asian stocks reversed initial losses to close on a mixed note on Wednesday as the final vote on the U.S. tax bill entered a crucial phase.

Senate Republicans voted late Tuesday night to approve their final tax overhaul bill, which would cut taxes for businesses and individuals.

However, a technical vote in the House is still needed before the bill can be sent to President Donald Trump’s desk.

China’s Shanghai Composite Index eased 8.93 points or 0.3 percent to 3,287.61, while Hong Kong’s Hang Seng Index edged down 19.57 points or 0.1 percent to 29,234.09.

Japanese shares ended a choppy session marginally higher as a weaker yen on U.S. tax cut hopes and gains in the financial sector helped outweigh a renewed sell-off in construction shares in the wake of bid-rigging allegations.

The Nikkei 225 Index inched up 23.72 points or 0.1 percent to 22,891.72, and the broader Topix Index closed 0.3 percent higher at 1,821.16.

Banks Mitsubishi UFJ Financial and Sumitomo Mitsui Financial jumped around 2 percent after the 10-year U.S. Treasury yield rose to a seven-week high.

Japan Display rallied 3.1 percent after Kyodo reported that it is discussing an investment of more than 200 billion yen from three Chinese panel makers.

Meanwhile, shares of automaker Subaru lost more than 7 percent after reports that it had falsified fuel economy tests.

Australian shares recovered from initial losses to finish marginally higher, led by miners underpinned by recent strength in commodity prices.

The benchmark S&P/ASX 200 Index crept up 3.80 points to end at 6,075.60, while the broader All Ordinaries Index closed 4.70 points higher at 6,167.90.

Embattled theme park operator Ardent Leisure jumped almost 12 percent after divesting the last of its non-core assets. Downer EDI rallied 1.8 percent on winning a A$400 million mining contract.

Retail Food Group slumped 18 percent to extend Tuesday’s plunge following its profit warning. TPG Telecom lost about 1 percent after saying it would compensate nearly 8,000 customers who paid for national broadband network plans.

On the economic front, the latest survey from Westpac Bank revealed that the Australian economy continued to expand in November, albeit at a slightly slower rate.