· China’s Shenzhen rises nearly 2% as mainland stocks build on Monday momentum
Stocks in Asia Pacific were mixed on Tuesday as the Reserve Bank of Australia kept its policy settings on hold.
Stocks in mainland China continued to lead gains among the region’s major markets for a second day after Monday’s blockbuster gains. The Shenzhen component jumped 1.717% to close at around 13,163.98 while the Shanghai composite rose 0.37% to about 3,345.34.
On Monday, the Shanghai composite soared nearly 6% after the state-owned China Securities Journal said investors should look forward to the “wealth effect of the capital markets” and the prospect for a “healthy bull market.”
Elsewhere, Japan’s Nikkei 225 slipped 0.44% to close at 22,614.69 while the Topix index shed 0.34% to end its trading day at 1,571.71. South Korea’s Kospi dropped 1.09% to close at 2,164.17.
Over in Australia, the S&P/ASX 200 finished its trading day marginally below the flatline at 6,012.90.
Overall, the MSCI Asia ex-Japan index declined 0.59%.
The Reserve Bank of Australia (RBA) announced Tuesday its decision to maintain its current policy.
· China told citizens to buy stocks, boosting market — ‘We have the Fed...China has its state media’
Strategists say two factors are helping give legs to the global stock market’s Monday morning surge - bullishness about China and the view that central banks will backstop markets.
A front-page editorial in the state-owned China Securities Journal is getting credit for fueling a strong rally in Chinese markets overnight that spread to global equities. Shanghai stocks jumped 5.7%, after the publication said investors should look forward to the “wealth effect of the capital markets” and the prospect for a “healthy bull market.”
“We have the Fed to juice bull markets, China has its state media,” wrote Peter Boockvar, chief investment strategist at Bleakley Advisory Group.
· Samsung says its second quarter profits likely rose 23%
Samsung shares fell Tuesday after the tech giant posted earnings guidance for the three months that ended in June.
Operating profit likely rose almost 23% to 8.1 trillion Korean won (about $6.8 billion) from a year ago, beating the 6.4 trillion won number that analysts predicted through Refinitiv SmartEstimate. Consolidated sales likely fell over 7% on-year to 52 trillion won, Samsung said.
· European markets fall as investors look to economic data and U.S. virus surge
European markets retreated Tuesday morning as concerns over the threat to economic recovery of new coronavirus cases in the U.S. and weak German data put the brakes on Monday’s rally.
The pan-European Stoxx 600 fell 0.7% in early trade, with travel and leisure stocks shedding 1.6% to lead losses as all sectors and major bourses slid into negative territory.
German industrial production data came in weaker than expected on Tuesday morning, rising by 7.8% in May, a more modest rebound than the 10% expected by analysts polled by Reuters following a -17.5%contraction in April.
Reference: CNBC, Reuters
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