Investing.com - Asian equities markets were mixed on Tuesday, the last day of the year, buoyed by positive economic news out of China and the likelihood that a phase one trade deal between the U.S. and China will be signed within days.
China’s Shanghai Composite rose 0.07% by 09:01 PM ET (02:01 GMT) and the Shenzhen Component was up 0.12%.
China’s official manufacturing Purchasing Managers’ Index (PMI) showed a positive reading for the second month in a row and slightly ahead of expectations. The manufacturing PMI by the National Bureau of Statistics (NBS) produced a reading for December of 50.2, in line with the November reading.
Chinese manufacturing activity will remain a focus for traders ahead of January, when a phase one trade deal between the U.S. and China is expected to be signed. There are some that are ringing a word of caution, however.
“The U.S.-China trade war is far from resolved. Negotiations continue over the details of a phase one deal, but policy makers acknowledge many thorny issues remain,” Hannah Anderson, global market strategist at JPMorgan (NYSE:JPM) Asset Management said in a note quoted by Bloomberg. “Returns will depend on just how tolerant investors can be of their fears in a low growth world.”
Hong Kong’s Hang Seng Index dropped 0.23%.
Japan’s Nikkei 225 was closed Tuesday for a holiday. The Japanese index ended 2019 with average gains higher than at any point in the past 29 years.
“The Tokyo market’s direction at the outset of the new year will be determined by developments in overseas markets during the holiday,” Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., said in a note.
Down under, Australia’s stock market was scheduled to close early. During its last day of trading of the year, the ASX 200 slipped 1.64%.