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Asia report: Stocks mixed, Chinese property shares soar

By Josh White

Date: Tuesday 16 Aug 2022

Asia report: Stocks mixed, Chinese property shares soar

(Sharecast News) - Stocks in Asia were mixed on Tuesday, with Chinese real estate firms and Australian miners underpinning some of the gains.
In Japan, the Nikkei 225 was down 0.01% at 28,868.91, as the yen weakened 0.58% against the dollar to last trade at JPY 134.09.

Uniqlo owner Fast Retailing gained 0.66%, while robotics specialist Fanuc slipped 0.12%, and tech investing giant SoftBank Group slid 2.56%.

The broader Topix index was off 0.15% by the end of trading in Tokyo, settling at 1,981.96.

On the mainland, the Shanghai Composite managed gains of 0.05% to 3,277.88, and the technology-centric Shenzhen Component was 0.08% firmer at 12,470.11.

South Korea's Kospi was 0.22% higher at 2,533.52, while the Hang Seng Index in Hong Kong slid 1.05% to 19,830.52.

Chinese property plays were a bright spot in the special administrative region, with China Resources Land up 3.37%, China Vanke ahead 1.72%, Country Garden surging 9.05%, Longfor Group leaping 12.42%, and Guangzhou R&F Properties 1.26% firmer.

The moves came after reports that the state-owned China Bond Insurance Co had been ordered to guarantee onshore bond issues by "model private developers".

Seoul's blue-chip technology stocks were on the front foot, with Samsung Electronics up 1.33%, and SK Hynix ahead 3.64%.

Richard Hunter, head of markets at Interactive Investor, said the "generally mixed performance" in Asia on Tuesday was a carry-over from Monday, where a "faltering Chinese economy" prompted the central bank to cut rates.

"However, the scale of the cut is seen to have limited impact on reviving the economy, although it could also signal that the authorities are prepared to take further stimulative action should the need arise.

"In the meantime, the zero-tolerance policy from Beijing on Covid-19 and an uncertain outlook for commodity demand have spilled over into other asset classes."

Oil prices were lower as the region went to bed, with Brent crude futures last down 1.08% on ICE at $94.07 per barrel, and West Texas Intermediate off 0.62% at $88.86 on NYMEX.

In Australia, the S&P/ASX 200 rose 0.58% to 7,105.40, with miners taking the lead from BHP, which jumped 4.09% on the back of solid full-year results.

The Anglo-Australian mining giant reported its second-biggest profit ever, and declared a record dividend.

Across the Tasman Sea, New Zealand's S&P/NZX 50 added 0.49% to 11,847.15, led higher by healthcare distributor Ebos Group, which rebounded 3% after a fall on Monday.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.34% at AUD 1.4289, and the Kiwi retreating 0.68% to NZD 1.5814.

Reporting by Josh White at Sharecast.com.

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