Asia report: Stocks mixed as RBA warns on Aussie housing market
Markets in Asia finished mixed on Tuesday, with eyes looking down under as the Reserve Bank of Australia released its meeting minutes for March.
AUD/USD
$0.6496
03:22 25/04/24
GBP/NZD
NZD2.0993
03:21 25/04/24
Hang Seng
17,201.27
10:21 24/04/24
Nikkei 225
38,016.78
09:44 24/04/24
USD/JPY
¥155.3850
03:22 25/04/24
Japan’s Nikkei 225 was off 0.34% at 19,455.88, as the yen remained relatively strong against the greenback, below the 113 mark.
It was last 0.02% stronger at JPY 112.53 per $1.
Shares in technology group Toshiba were up 3.21%, after reports its failed US nuclear power development acquisition Westinghouse Electric was reviewing offers for a finance package to help it go through the process of bankruptcy.
On the mainland, the Shanghai Composite was up 0.35% at 3,262.20, while the Shenzhen Composite was 0.39% firmer at 2,043.94.
South Korea’s Kospi was up 0.99% at 2,178.38, while Hong Kong's Hang Seng Index was up 0.37% at 24,593.12.
In Seoul, impeached former President Park Geun-hye issued a public apology over the cash-for-influence corruption scandal that saw her removed from office on Tuesday.
She made the apology as she arrived at the special prosecutor’s office, where we was wanted for further questioning over the scandal.
Oil prices were lower overnight in the US but recovered somewhat during Asian trading, with Brent crude last up 0.85% at $52.06 per barrel and West Texas Intermediate adding 0.85% to $49.33.
In Australia, the S&P/ASX 200 was down 0.07% at 5,774.62, with the materials subindex dragging on the wider benchmark, as it lost 0.58%.
The Reserve Bank of Australia released its meeting minutes for March during the day, revealing there were still concerns at the central bank that the housing market was at risk of overheating.
Strategists at Macquarie Bank said the Reserve Bank was well within reason to speak out, as household debt in Australia was among the highest in the world, alongside Canada.
“[The minutes] reinforce the idea that the prospect of another rate cut anytime soon is remote, and paves the way for a tightening of macroprudential measures quite imminently,” noted Macquarie’s Gareth Berry, Nizam Idris and Teresa Lam.
Construction and civil engineering firm Downer EDI revealed it was considering a AUD 1.27bn takeover bid for catering and cleaning contractor Spotless Group.
Shares in Downer EDI remained untraded in Sydney, while Spotless surged 49% during the session.
Over the Tasman Sea in New Zealand, the S&P/NZX 50 was up 0.4% at 7,085.55, with Fletcher Building gaining 1% after falling on Monday, after the board was forced to cut the construction conglomerate’s earnings guidance by NZD 110m.
The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.08% at AUD 1.2928 and the Kiwi advancing 0.09% to NZD 1.4165 per $1.