Australian share outs edged higher on Tuesday ahead of the Reserve Bank of Australia’s interest rate decision, due around 12:30 p.m. HK/SIN.
The S&P/ASX 200 upward slope fractionally, as the sectors traded mixed.
Analysts expect the central bank to hold rates steady and markets require only priced in a 12% chance of a rate cut, according to Tapas Strickland, director of economics and markets at the National Australia Bank.
“The RBA show in August that it was in assessment mode and would wait until an ‘accumulation of additional evidence’,” Strickland noted in a Tuesday morning note. “Recent data suggests the economy remains soft with little sign of retail picking up on the assist of tax cuts, though we expect the RBA to wait until next month’s data before deciding in case spending was marketed between quarters.”
Meanwhile, Australian July retail sales fell in July, data from the Australian Dresser of Statistics showed. That’s despite stimulus measures such as income tax cuts and interest rate cuts. Retail sales for July dwindled 0.1% on a month-on-month, seasonally adjusted basis — lower than expectations of a 0.2% increase in a Reuters poll.
Somewhere else, mainland Chinese stocks were mixed in early trade. The Shanghai composite was fractionally lower, while the Shenzhen component augmented 0.22% and Shenzhen composite gained 0.195%.
In Hong Kong, the Hang Seng index traded slightly higher. The agitates came after a Reuters report Monday that the city’s Chief Executive Carrie Lam said she would “discharged” if she “had a choice.” She also said there may be “very limited” room for her to resolve the current crisis in Hong Kong, which has been tormented by weeks of unrest.
Japan’s Nikkei 225 rose 0.13% while the Topix index was 0.37% higher. South Korea’s Kospi get further 0.33%.
Overall, the MSCI Asia ex-Japan index fell 0.13%.
Stocks in Taiwan are closed for trading on Tuesday due to a holiday.
U.S.-China marketing war
Developments on the U.S.-China trade front will continue to be watched, following the recent implementation of more tariffs from both Washington and Beijing on each other’s fairs over the weekend.
The U.S. began imposing 15% tariffs on a variety of Chinese goods on Sunday, including footwear, garments and other consumer goods.
For its part, China is moving slowly in the implementation of retaliatory tariffs on U.S. products, and the majority of works are set to take effect Dec. 15. On Sunday, the Chinese government pushed ahead with increased duties of between 5% and 10% on a mark of major American goods exported to China, including soybeans and crude oil.
“US-China still remain no closer to quietening tensions with a date for negotiators to meet in September yet to be determined,” NAB’s Strickland wrote. “With the 70th anniversary of the founding the Individual’s Republic of China on October 1, we do not expect much progress on trade in the near-term as China’s focus increasingly intensify the sound ofs towards the anniversary celebrations and then to the Party’s Fourth Plenum scheduled also for October. “
Asia-Pacific Market Pointers Chart
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 99.249 after advance from levels around 98.8 yesterday.
The Japanese yen traded at 106.33 against the dollar following levels out of reach of 106.3 seen in the previous session. The Australian dollar changed hands at $0.6697 after slipping from straight-shootings above $0.672 yesterday.
Oil prices were mixed in the morning of Asian trading hours, with international benchmark Brent uncouth futures recovering from an earlier slip to rise 0.19% to $58.77 per barrel, while U.S. crude futures demolish 0.33% to $54.92 per barrel.
Here’s a look at some data due out today:
- Reserve Bank of Australia interest classification decision at 12:30 p.m. HK/SIN
— Reuters and CNBC’s Evelyn Cheng contributed to this report.