Asia: Chinese stocks fall as premier fails to mention market troubles, RBA keeps interest rates unchanged
Asian stocks were mixed on Tuesday with China moving back to losses and Australia rising following its central bank's decision to leave interest rates unchanged.
BHP Billiton Ltd.
$45.23
08:31 24/04/24
Boeing Co.
$162.85
04:35 25/04/24
Dow Jones I.A.
37,926.08
04:30 15/10/20
Fast Retailing Co.
n/a
n/a
FTSE 100
8,053.40
14:35 25/04/24
FTSE 350
4,421.56
14:35 25/04/24
FTSE All-Share
4,375.55
14:35 25/04/24
Mining
10,317.46
14:35 25/04/24
Nikkei 225
37,628.48
09:43 25/04/24
Rio Tinto
5,383.00p
14:35 25/04/24
Santos Limited
$7.75
08:31 24/04/24
Yamato Transport Co.
n/a
n/a
The Shanghai composite index fell 1.30% after surging almost 8% on the previous session underpinned by the government's move to freeze new share offers and establish a market-stabilisation fund in an attempt to halt the sharp decline in the country's stock market.
The Wall Street Journal said on Sunday that initial public offerings had been suspended, news which came just hours after a number of China's leading brokerages posted a statement on the website of the Securities Association of China saying that they would collectively buy at least $19.3bn-worth of shares.
Investors were cautious on Tuesday after the Chinese premier Li Keqiang failed to mention the stock market crises in a statement on the economy. The premier said on a government website that China has the ability to deal with economic risks, but did not mention the recent losses in Chinese shares.
Hong Kong's Hang Seng was also down 1.27%. Accendo Markets analysts said doubts about a Beijing rescue is on the cards despite more regulator intervention.
Mike van Dulken and Augustin Eden noted that measures used so far include buybacks, share suspensions, PBOC balance sheet use, IPOs suspended, interest rate cuts, lower trading costs and securities companies contributing to rescue fund.
Australia's ASX was up 1.94% after the Reserve Bank of Australia (RBA) decided to leave its interest rate unchanged at 2% and reiterated much its June statement.
"Despite fluctuations in markets associated with the respective developments in China and Greece, long-term borrowing rates for most sovereigns and creditworthy private borrowers remain remarkably low," RBA governor Glenn Stevens said.
"Further depreciation seems both likely and necessary particularly given the significant declines in key commodity prices," he added.
Ipek Ozkardeskaya, market analyst at London Capital Group, said, "Stevens is clearly winning the battle on the FX field, however Australia is still far from leading the war for strong economic recovery."
"The macroeconomic environment becomes ever more sanguine now that the market volatility in highly leveraged Chinese markets is getting out of control; the commodity prices have a hard time getting their strength back and the structural shift from the mining to construction sector in Australia is not an example of success," the analyst added, despite welcoming news of a soft winter in Australia.
In company news, Santos fell 0.7% on news the state of New South Wales is planning to change its mining approval process due to environmental concerns. The proposal could hit Rio Tinto's Mount Thorley Warkworth coal mine, which is awaiting final approval after a long process. BHP Billiton also lost 0.82%.
Elsewhere in Japan, the Nikkei 225 rose 1.32% as investors kept a watchful eye on Greece.
Eurozone leaders will gather in Brussels for an emergency meeting, during which Greek Prime Minister Alexis Tsipras is expected to unveil new proposals to his creditors.
In the corporate world, Boeing donated its first 787 Dreamliner flight test airplane to Nagoya's Central Japan International Airport.
Fast Retailing rose 2.63% ahead of retailer's corporate reporting season this week.
Elsewhere, e-commerce company Rakuten gained 2.07% after announcing business plans for an online-shopping delivery service with Yamato Transport, which also rose 2.42%.