Investing.com - Asian stock markets were broadly lower during late Asian trade on Tuesday, with shares in Japan reversing earlier gains after the Bank of Japan increased the size of its asset-purchase program.
Market sentiment remained under pressure as investors continued to monitor the trajectory of Hurricane Sandy, as it barrels along the U.S. East Coast. Markets in the U.S. were set to remain closed for a second day on Tuesday due to disruption caused by the superstorm.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.65%, Australia’s ASX/200 Index ended up 0.2%, while Japan’s Nikkei 225 Index tumbled 1%.
Shares in Tokyo came under pressure after the BoJ boosted the size of its asset purchase program by JPY11 trillion to a total of JPY66 trillion. The asset purchase fund has been its main policy tool since October 2010.
The central bank also left its policy interest-rate target unchanged in the current range of zero to 0.1%, it said in a statement earlier.
The yen turned higher to touch a one-week top against the U.S. dollar following the decision, as some market participants had forecast and priced a larger stimulus announcement.
Shares in major Japanese exporters traded lower following the decision, with automakers Nissan and Mazda dropping 2.6% 3.2% respectively, while shares in consumer electronic maker Sony retreated 1.3%.
On the upside, Sharp saw shares rally 6.2% on a report the electronics company is in investment talks with Apple, Google and Microsoft.
Elsewhere, in Hong Kong, shares in property developers came under selling pressure for a second day, following last week’s introduction of a 15% tax on housing purchases by foreign and corporate buyers aimed at cooling soaring property prices.
Sino Land shares shed 0.6%, Sun Hung Kai declined 0.5%, while New World Development shares retreated 3.4%.
Chinese financials were also lower, with Industrial and Commercial Bank of China shares down 2%, China Construction Bank declining 1.4% and Bank of China falling 1.6%.
Index heavyweight HSBC Holdings traded down 0.75%. Europe’s largest lender commands a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Meanwhile, in Australia, the benchmark ASX/200 Index edged higher on the back of strong gains Virgin Australia Holdings.
The airliner saw shares jump 5.4% after Singapore Airlines bought a 10% stake in the company for nearly AUD105 million. The firm also announced it had bought a 60% stake in domestic rival Tiger Airways Australia and had made a takeover offer for regional carrier Skywest Airlines.
Looking ahead, European stock market futures pointed to a mildly higher open, as investors continued to await any indication that Spain is moving closer to formally requesting a bailout from its euro zone partners and activating the European Central Bank’s bond purchasing plan.
The EURO STOXX 50 futures pointed to a gain of 0.25% at the open, France’s CAC 40 futures added 0.2%, London’s FTSE 100 futures eased up 0.15%, while Germany's DAX futures pointed to a rise of 0.3% at the open.
Later Tuesday, Italy was planning to auction as much as EUR7 billion of government bonds, but investor remained jittery amid concerns over former Prime Minister Silvio Berlusconi's threat to bring down the current government.
Market sentiment remained under pressure as investors continued to monitor the trajectory of Hurricane Sandy, as it barrels along the U.S. East Coast. Markets in the U.S. were set to remain closed for a second day on Tuesday due to disruption caused by the superstorm.
During late Asian trade, Hong Kong's Hang Seng Index fell 0.65%, Australia’s ASX/200 Index ended up 0.2%, while Japan’s Nikkei 225 Index tumbled 1%.
Shares in Tokyo came under pressure after the BoJ boosted the size of its asset purchase program by JPY11 trillion to a total of JPY66 trillion. The asset purchase fund has been its main policy tool since October 2010.
The central bank also left its policy interest-rate target unchanged in the current range of zero to 0.1%, it said in a statement earlier.
The yen turned higher to touch a one-week top against the U.S. dollar following the decision, as some market participants had forecast and priced a larger stimulus announcement.
Shares in major Japanese exporters traded lower following the decision, with automakers Nissan and Mazda dropping 2.6% 3.2% respectively, while shares in consumer electronic maker Sony retreated 1.3%.
On the upside, Sharp saw shares rally 6.2% on a report the electronics company is in investment talks with Apple, Google and Microsoft.
Elsewhere, in Hong Kong, shares in property developers came under selling pressure for a second day, following last week’s introduction of a 15% tax on housing purchases by foreign and corporate buyers aimed at cooling soaring property prices.
Sino Land shares shed 0.6%, Sun Hung Kai declined 0.5%, while New World Development shares retreated 3.4%.
Chinese financials were also lower, with Industrial and Commercial Bank of China shares down 2%, China Construction Bank declining 1.4% and Bank of China falling 1.6%.
Index heavyweight HSBC Holdings traded down 0.75%. Europe’s largest lender commands a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Meanwhile, in Australia, the benchmark ASX/200 Index edged higher on the back of strong gains Virgin Australia Holdings.
The airliner saw shares jump 5.4% after Singapore Airlines bought a 10% stake in the company for nearly AUD105 million. The firm also announced it had bought a 60% stake in domestic rival Tiger Airways Australia and had made a takeover offer for regional carrier Skywest Airlines.
Looking ahead, European stock market futures pointed to a mildly higher open, as investors continued to await any indication that Spain is moving closer to formally requesting a bailout from its euro zone partners and activating the European Central Bank’s bond purchasing plan.
The EURO STOXX 50 futures pointed to a gain of 0.25% at the open, France’s CAC 40 futures added 0.2%, London’s FTSE 100 futures eased up 0.15%, while Germany's DAX futures pointed to a rise of 0.3% at the open.
Later Tuesday, Italy was planning to auction as much as EUR7 billion of government bonds, but investor remained jittery amid concerns over former Prime Minister Silvio Berlusconi's threat to bring down the current government.