Investing.com - Asian stock markets were mixed during late Asian trade on Tuesday, with shares in Japan paring the previous session’s strong gains as the yen halted its slide against the U.S. dollar.
During late Asian trade, Hong Kong's Hang Seng Index declined 0.8%, Australia’s ASX/200 Index settled 0.4% higher, while Japan’s Nikkei 225 Index ended down 0.3%, after soaring 2.1% on Monday.
In Tokyo, the Nikkei came under mild profit taking, as the yen firmed against the U.S. dollar and the euro after Finance Minister Taro Aso said that the government wasn’t considering purchasing foreign bonds or changing the law that governs the Bank of Japan.
Prime Minister Shinzo Abe had previously said that if the BoJ fails to achieve its inflation target, then he might change the central-bank law.
Investor attention remained on the upcoming announcement of the next governor of the BoJ after current chief Masaaki Shirakawa said earlier this month that he plans to step down on March 19, three weeks earlier than expected.
The yen strengthened to 93.45 against the U.S. dollar, retreating further from last week’s 33-month low of 94.45. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
The news prompted investors to take profits on recent outperformers. The benchmark index has rallied nearly 31% since mid-November, as expectations for more aggressive monetary stimulus from the Bank of Japan under new Prime Minister Shinzo Abe underpinned sentiment.
Japanese exporters have been amongst the most notable gainers in recent weeks, as ongoing weakness in the yen boosted the outlook for export earnings.
Automakers Mazda and Toyota lost 0.75% and 1% respectively, while industrial robot maker Fanuc dropped 4.1%.
Meanwhile, in Hong Kong, the Hang Seng was dragged lower by losses in mainland China.
The China banking and insurance sector were the biggest drags on the index, as traders booked profits on recent gains.
China Life Insurance Group shares fell 3.5%, Ping An Insurance Group declined 2%, while Industrial and Commercial Bank of China and Bank of China retreated 1.6% and 1.9% respectively.
Elsewhere, in Australia, the benchmark ASX/200 Index inched up to close near a four-and-a-half year high as strong earnings reports continued to boost sentiment.
Major companies due to release results this week include mining giant BHP Billiton, oil driller Woodside Petroleum and QBE Insurance Group.
Southern Cross Media saw shares rally 10% after its earnings results beat market expectations.
Looking ahead, European stock market futures pointed to a lower open, as investors remained wary ahead of the upcoming Italian general elections next week, amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.
The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures shed 0.25%, London’s FTSE 100 futures eased down 0.25%, while Germany's DAX futures pointed to a drop of 0.2% at the open.
The ZEW Institute was to release its closely watched index of German economic sentiment later in the day.
During late Asian trade, Hong Kong's Hang Seng Index declined 0.8%, Australia’s ASX/200 Index settled 0.4% higher, while Japan’s Nikkei 225 Index ended down 0.3%, after soaring 2.1% on Monday.
In Tokyo, the Nikkei came under mild profit taking, as the yen firmed against the U.S. dollar and the euro after Finance Minister Taro Aso said that the government wasn’t considering purchasing foreign bonds or changing the law that governs the Bank of Japan.
Prime Minister Shinzo Abe had previously said that if the BoJ fails to achieve its inflation target, then he might change the central-bank law.
Investor attention remained on the upcoming announcement of the next governor of the BoJ after current chief Masaaki Shirakawa said earlier this month that he plans to step down on March 19, three weeks earlier than expected.
The yen strengthened to 93.45 against the U.S. dollar, retreating further from last week’s 33-month low of 94.45. A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
The news prompted investors to take profits on recent outperformers. The benchmark index has rallied nearly 31% since mid-November, as expectations for more aggressive monetary stimulus from the Bank of Japan under new Prime Minister Shinzo Abe underpinned sentiment.
Japanese exporters have been amongst the most notable gainers in recent weeks, as ongoing weakness in the yen boosted the outlook for export earnings.
Automakers Mazda and Toyota lost 0.75% and 1% respectively, while industrial robot maker Fanuc dropped 4.1%.
Meanwhile, in Hong Kong, the Hang Seng was dragged lower by losses in mainland China.
The China banking and insurance sector were the biggest drags on the index, as traders booked profits on recent gains.
China Life Insurance Group shares fell 3.5%, Ping An Insurance Group declined 2%, while Industrial and Commercial Bank of China and Bank of China retreated 1.6% and 1.9% respectively.
Elsewhere, in Australia, the benchmark ASX/200 Index inched up to close near a four-and-a-half year high as strong earnings reports continued to boost sentiment.
Major companies due to release results this week include mining giant BHP Billiton, oil driller Woodside Petroleum and QBE Insurance Group.
Southern Cross Media saw shares rally 10% after its earnings results beat market expectations.
Looking ahead, European stock market futures pointed to a lower open, as investors remained wary ahead of the upcoming Italian general elections next week, amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.
The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures shed 0.25%, London’s FTSE 100 futures eased down 0.25%, while Germany's DAX futures pointed to a drop of 0.2% at the open.
The ZEW Institute was to release its closely watched index of German economic sentiment later in the day.