Shares across Asia exhibited a mixed performance on Tuesday, reflecting a cautious sentiment amid the absence of trading in U.S. markets due to the Memorial Day holiday. However, gains in oil prices and U.S. futures provided some support to the region’s markets.
In China, market sentiment was bolstered as senior leaders of the ruling Communist Party convened, emphasizing Beijing’s commitment to managing financial risks effectively. This reassurance resonated positively with investors, particularly in the technology sector, contributing to gains in Hong Kong’s benchmark index.
Meanwhile, European shares saw modest gains as markets were buoyed by a rebound on Wall Street following its worst day since April.
In early trading on Tuesday, Japan’s Nikkei 225 index retreated by 0.3% to 38,795.07, while South Korea’s Kospi index eked out a marginal gain of 0.1%, reaching 2,726.82. Australia’s S&P/ASX 200, however, slipped by 0.2% to 7,776.80.
The Shanghai Composite index in China edged 0.1% higher to 3,126.76, indicating cautious optimism among investors. Hong Kong’s Hang Seng index registered a notable gain of 0.8%, reaching 18,982.31, driven by positive momentum in the technology sector.
Recent policy measures by the Chinese government, including the relaxation of interest rates and downpayment requirements for housing loans, aimed at revitalizing the property sector, have garnered attention. This sector, pivotal for driving economic growth, has faced challenges following a crackdown on excessive borrowing, leading to defaults among developers.
Meetings held on Monday, spearheaded by Chinese President Xi Jinping, underscored the importance of preventing and mitigating financial risks, identifying it as a crucial priority for achieving high-quality development. Efforts to strengthen oversight were emphasized, signaling a commitment to holding violators accountable and ensuring effective financial regulation.
In the U.S., on Friday, the S&P 500 and the Dow Jones Industrial Average posted gains, while the Nasdaq composite surged to surpass its previous all-time high set earlier in the week.
In commodities trading on Tuesday, U.S. benchmark crude oil prices climbed by $1.03 to $78.75 per barrel on the New York Mercantile Exchange. Similarly, Brent crude, the international standard, edged up by 4 cents to $82.92 per barrel.
In currency markets, the U.S. dollar slightly weakened against the Japanese yen, trading at 156.75 yen compared to 156.89 yen previously. The euro strengthened marginally against the dollar, rising to $1.0874 from $1.0860.
Overall, market participants remain vigilant, closely monitoring geopolitical and economic developments for insights into future investment decisions amidst evolving global dynamics.