Asian stocks reported mixed results on Tuesday, as the investors focused on the decisions of central banks in Japan and Australia. The markets in Shanghai remained closed for the celebration of the national holiday and trade will resume on Wednesday. Earlier in the day the Bank of Japan to maintain an aggressive monetary policy that began in April 2013, despite expectations of further efforts to permanently maintain the inflation target. The increase in the monetary base will continue to amount to 60-70 trillion JPY per year, showed the official statement of the institution following the two-day meeting of the bank. The expectations of bankers to raise inflation and final withdrawal of Japanese 15-year deflationary spiral.
Meanwhile the Australian central bank also maintained the monetary policy, leaving interest rates at a level of 2.5% as expected. The bank reiterated its concern about the possibility of “overheating” in the housing market and the strength of the currency, which prevents growth. Australian benchmark S&P ASX 200 ended a week-long bed, shrugging But in the end their retreat after earlier reached an 8-month minimum. The AUD hovered around 0.8766 USD, after the central bank said the currency remains above historical standards. The capitalization of National Australia Bank declined by 1%, while Commonwealth Bank of Australia wiped 0.5%. Rio Tinto rose more than 4% after the company said on Tuesday it had rejected a proposal for merge with Glencore in August. Previously listed on the New York Stock Exchange shares of the company rose more than 9%.
The Japanese benchmark Nikkei 225 ended with a decline after a volatile session. The news that the world’s largest pension fund, which is under government control, may postpone the decision until November to restructure its portfolio affected the mood of the market. Fujifilm ended with a growth of 2.7% after Monday Guinea and France announced that they are considering using the company developed a cure for Ebola.
The Hong Kong’s Hang Seng shook off early losses, taking into account its biggest one-day rise in more than a month. The shares of local casinos rose for the second consecutive session. Galaxy Entertainment and Melco International Development Galaxy Entertainment has added more than 1%. The protesters remained on the streets on Tuesday. On Monday evening the association of students and state officials agreed to start negotiations with the authorities later this week.
The South Korean KOSPI rose thanks to the good performance of Samsung Electronics. Shares in technology giant rose more than 1%, although the company predicts 60% drop in operating profit for the third quarter.