Asian Daily Market Review

Asian markets ended Tuesday mixed after a losing overnight session on Wall Street. Investor focus is on later this week, when the U.S. will release inflation data that could inform investors of potential interest rate moves. The US Personal Consumption Expenditure (PCE) price index is the Fed’s favored inflation gauge and could give clues to the first rate cut in the U.S. Also coming up Friday is the latest Chinese manufacturing data, which could help improve investor sentiment if it shows the Chinese economy beginning a recovery.

Japan’s Nikkei barely hung in record territory, ending the session just slightly higher by less than 0.1%. January data showed inflation falling for a third consecutive month, sparking speculation that the Bank of Japan could begin raising rates as early as March. Shares of Softbank Group rose by 2.4%, while Sony retreated by 0.8%. Among the major exporters Toyota gained 0.5%, while Panasonic and Canon both finished 1.8% higher.

In Australia the S&P/ASX 200 edged higher by 0.1%, helped by strength from the big four banks. Shares of ANZ and NAB were 0.5% higher each, Commonwealth Bank added 1%, and Westpac advanced by 0.8%. The major miners showed more modest gains, with BHP up by 0.2% and Rio Tinto tacking on 0.5%.

Mainland Chinese markets outperformed the region as the benchmark Shanghai Composite gained 1.3% and the smaller cap Shenzhen Composite rallied 2.2% higher. Over in Hong Kong the Hang Seng took its lead from the mainland and advanced by 0.9%.

In South Korea the Kospi underperformed the region, losing 0.8% for the day, and in Taiwan the Taiex retreated by 0.5%.

Southeast Asian markets were mixed, with Malaysia’s KLCI up by 0.7% and Singapore’s Straits Times Index down by 0.4%.