Japanese Shares Rise as Chinese Stocks Rebound
By Investors Hub
Asian stocks turned in a mixed performance on Tuesday as fears over U.S-China trade tensions offset higher oil prices and upbeat corporate earnings results from the U.S.
Iranian President Hassan Rouhani dismissed calls for talks with the U.S. as the first phase of sanctions came into effect overnight. Rouhani said that America “cannot be trusted” and wants to “create chaos in Iran”.
Chinese shares bounced back on bargain hunting after recent steep losses on concerns about the impact of trade war on businesses.
The benchmark Shanghai Composite index jumped 74.22 points or 2.74 percent to 2,779.37 while Hong Kong’s Hang Seng index rallied 1.54 percent to finish at 28,248.88.
Japanese shares rose as Chinese markets rebounded and heavyweight SoftBank posted strong first-quarter results. The Nikkei average climbed 155.42 points or 0.69 percent to 22,662.74 while the broader Topix index closed 0.76 percent higher at 1,746.05.
SoftBank shares soared 6.5 percent to hit a nine-month high after the company reported a 49 percent jump in quarterly operating profit, helped by its sale of shares in Indian e-commerce firm Flipkart.
Japan Steel Works jumped 18.5 percent and Rakuten advanced 6.8 percent after well-received earnings updates. Pioneer Corp plummeted 23.7 percent after its Q1 net loss widened from last year.
In economic news, a government report showed that the average of household spending in Japan fell an annual 1.2 percent in June, coming in at 267,641 yen. That exceeded expectations for a decline of 1.4 percent following the 3.9 percent drop in May.
Australian shares closed lower after the country’s central bank kept its key interest rate unchanged, as widely expected, saying the unchanged policy is consistent with sustainable growth in the economy and achieving the inflation target over time.
The benchmark S&P/ASX 200 index dropped 19.10 points or 0.30 percent to 6,253.90 while the broader All Ordinaries index ended down 18.20 points or 0.29 percent at 6,340.80.
A drop in base metal prices pulled down mining stocks, with BHP Billiton and Rio Tinto losing 1.4 percent and 0.8 percent, respectively. Packaging firm Amcor tumbled 5.8 percent after it agreed to take over U.S. rival Bemis Company Inc.
Wesfarmers edged up slightly after it agreed to sell its 40 percent stake in the Bengalla Joint Venture thermal coal mine project to partner New Hope Corp for A$860 million (S$867 million). New Hope Corp shares soared 11 percent.
Banks ANZ, NAB and Westpac rose between 0.2 percent and 0.6 percent. Energy firm Santos climbed 2.8 percent and Beach Energy jumped 4.7 percent after oil prices rose on Monday amid reports that Saudi crude production unexpectedly fell in July.
In economic releases, the latest survey from the Australian Industry Group revealed that the construction sector in Australia continued to expand in July, and at a faster pace, with an index score of 52.0, up from 50.6 in the previous month.