Market Update
Chinese markets led gains in Asia Tuesday after the official gauge of China's manufacturing activity saw a small improvement in March.
The Nikkei traded flat. The Shanghai Composite was up 0.7% while the Hang Seng gained 1%. The Sensex also traded flat while the All Ordinaries slipped 0.2%.
China's official manufacturing PMI rose to 50.3 from 50.2 in February.
The privately compiled manufacturing PMI by HSBC showed a decline in activity with the index falling to a reading of 48 from 48.5, marking the third straight month of decline.
The Shanghai Composite slipped to a marginal 0.1% loss but recovered quickly.
However, Japanese markets were weighed by the Bank of Japan's closely watched tankan survey on manufacturing which rose less-than-expected in the last quarter. The data was released Monday after the market close. The BoJ said the manufacturing index rose to a seasonally adjusted 17 from 16 in the last quarter. However, the recovery was slower than expected with the median estimate calling for a reading of 18.
In Australia, as was widely expected, the Reserve Bank kept its benchmark cash rate at a record low 2.5%.
Crude oil prices were lower.
Stocks on the Move
Retailers were weaker in Tokyo with the country's first consumption-tax hike in 17 years going into effect today.
Aeon was down 1.2% and J. Front Retailing 1.1% lower. Seven & i Holdings declined 0.7% while FamilyMart Co. and Takashimaya fell 1.7% and 2.3% each, respectively.
Tokyo Electric Power was down 2.4%. The utility said it would lay off 1,000 jobs by June but also said it wouldn’t raise rates this year, according to a Bloomberg news report.
Nikon was up 0.4% despite a Nikkei report the company is set to miss its full-year operating-profit forecast.
CAPCOM Co. dropped almost 8% after the company slashed full-year profit forecast.
Mitsubishi UFJ Financial, Sumitomo Mitsui, and Mizuho were all higher, again possibly on the back of another Nikkei report saying the three megabanks are set to post record profits.
Index heavyweight Sony was up 2.6% and Panasonic also gained about the same. Bellwether Toyota slipped 0.2%.
In Hong Kong, CNOOC climbed 0.9% despite a broker downgrade.
Casino stocks, as usual, gained before their results announcements. Galaxy Entertainment was up 5.5% while Wynn Macau was up 6.7%. MGM China added 6.6% and SANDS CHINA was up 6.3%.
Stocks were flat in Mumbai ahead of the Reserve Bank's policy decision later in the day. The Sensex was marginally higher, hitting a record lifetime high for the seventh straight session.
ONGC was up 1.9% while TCS and Wipro gained 1.8% and 1.6% each, respectively.
Dr. Reddy’s and Tata Motors were up slightly over a percent each.
Oil shares were lower in Sydney, tracking a decline in crude prices. Woodside Petroleum slipped 1.3% while Oil Search was off 0.7%.
A sharp gain in spot iron-ore prices boosted some miners and Fortescue Metals added 1.2%. Rio Tinto was up 0.7%.
Banks traded mostly slightly lower.