Asian Stock Market Mixed Following Wall Street’s Break In Losing Streak

In today’s trading, Asian shares were mixed following a broad rally in US stocks, with Big Tech recovering some of their recent sharp declines. 

In Japan, Tokyo’s Nikkei 225 ended nearly unchanged at 39,594.39.

Chinese markets turned lower as investor skepticism over recent policy decisions persisted. The Hang Seng index fell 0.9% to 17,469.36, while the Shanghai Composite index dropped 1.7% to 2,915.37, marking its largest single-day loss in six months. 

The domestically focused CSI 300 index slipped 2.1%.

Baosteel Iron & Steel Co. saw a 2.9% decline. The company announced  Tuesday it is purchasing Nippon Steel’s 50% stake in their joint venture, Baosteel Nippon Steel Automotive Steel Sheets, for 1.76 billion yuan ($242 million). With the join venture’s contract nearing expiration and steel demand weakening, Nippon Steel is redirecting its focus, including a contested bid for US steel. 

China’s central bank cut two key interest rates by 10 basis points on Monday to ease credit and stimulate the economy, following a major policymaking meeting of the ruling Community Party that emphasized long-term reforms. 

The People’s Bank of China also reduced collateral requirements for its medium-term facility and cut the interest rate for its standing lending facility by 10 basis points to 2.7% for seven-day loans and 3.05% for one-month loans. 

However, these measures have yet to boost markets seeking more aggressive short-term actions to revitalize the slowing economy. 

Mizuho Bank commented that the 10 basis point rate cut needs to be revised, far from the significant stimulus the economy likely needs. 

Meanwhile, South Korea’s Kospi rose 0.4% to 2,774.29, while Australia’s S&P/ASX 200 climbed 0.5% to 7,971.10.

Taiwan’s Taiex surged 2.8% as Taiwan Semiconductor Manufacturing Co., the world’s largest computer chip maker, jumped 4.3%, rebounding from recent losses due to renewed optimism about the potential of artificial intelligence.