Investing.com - Asian stock markets were mixed in subdued trade on Tuesday, as investors weighed growing geopolitical tensions between China and Vietnam.
During late Asian trade, Hong Kong's Hang Seng dipped 0.2%, China’s Shanghai Composite inched down 0.2%, Australia’s S&P/ASX 200 closed 0.02% lower, while Japan’s Nikkei 225 ended up 0.23%.
Sentiment was dampened as Vietnam's coastguard accused China of sinking one of its fishing vessels in the disputed waters of the South China Sea.
In Tokyo, the Nikkei ended at a seven-week high as a weaker yen lifted sentiment. The yen traded at ¥101.98 against the U.S. dollar, compared to the previous session’s high of ¥101.83 (USD/JPY).
Meanwhile, in Australia, the ASX/200 Index swung between small gains and losses, while the Australian dollar rose to a one-week high against the greenback.
The Aussie (AUD/USD) strengthened to 92.76 U.S. cents from 92.55 U.S. cents in the prior session.
Suncorp Group (ASX:SUN) lost 2% after the insurance firm announced a writedown on its life-insurance business of about A$460 million.
Elsewhere, shares in mainland China and Hong Kong edged lower amid ongoing concerns over the health of China’s economy.
Property shares were lower amid signs of slowing demand. Wharf Holdings (HK:0004) was the biggest decliner, down 3.7%.
Looking ahead, European stock market futures pointed to a mixed open. The Euro Stoxx 50 futures pointed to a loss of 0.1%, France’s CAC 40 inched down 0.25%, Germany's DAX pointed to a flat open, while London’s FTSE 100 indicated a gain of 0.35%.
Markets eyed a second day of remarks by European Central Bank President Mario Draghi. On Monday, ECB President Draghi said the bank saw a risk of a deflationary cycle taking hold in the euro zone.
Draghi said the ECB is ready to act should it see signs of a negative inflation spiral taking hold, and indicated that the bank is weighing a wide range of policy options, including interest rate cuts, and liquidity injections or broad-based asset purchases to help shore up the fragile recovery in the euro area.
Across the Atlantic, U.S. equity markets pointed to a firm open. The Dow 30 futures pointed to a gain of 0.3%, the S&P 500 added 0.25%, while the Nasdaq 100 indicated a rise of 0.3%.
The U.S. is to produce data on durable goods orders, house price inflation and consumer confidence.