Asian Shares Mixed On Weak China Data, BOJ Policy Tweak

(RTTNews) - Asian stocks ended Tuesday's session on a mixed note as China data disappointed and investors awaited cues from the upcoming Federal Reserve meeting.

The Japanese yen languished near a one-year low against the dollar after the Bank of Japan allowed more flexibility in the conduct of yield curve control.

Gold eased and traded below the $2,000 per ounce level ahead of the Fed and Bank of England meetings this week. Oil prices recovered some ground after falling more than 3 percent on Monday.

China's Shanghai Composite index finished marginally lower at 3,018.77 as disappointing economic data suggested that the momentum of economic growth ebbed at the beginning of the fourth quarter. Hong Kong's Hang Seng index fell 1.69 percent to 17,112.48.

China's manufacturing activity contracted unexpectedly in October while the growth in the non-manufacturing sector softened, survey data from the National Bureau of Statistics showed earlier today.

The manufacturing PMI dropped to 49.5 in October while economists expected the score to remain unchanged at 50.2. The non-manufacturing PMI slid to 50.6 from 51.7 a month ago.

Japanese shares reversed course to end higher and the yen weakened after the Bank of Japan tweaked its bond yield control policy, loosening its grip on long-term yields that have been trending upward.

The Nikkei average rose 0.53 percent to 30,858.85 as the central bank kept its stimulative policy in place. The broader Topix index settled 1.01 percent higher at 2,253.72.

Banks Mitsubishi UFJ Financial, Sumitomo Mitsui Financial and Mizuho Financial rose 1-2 percent while Panasonic slumped 8.9 percent after slashing the profit outlook at its EV battery unit. Tech stocks suffered heavy losses, with Advantest and Renesas Electronics tumbled 5-6 percent.

Japan's factory output and retail sales rose in September while the jobless rate fell to 2.6 percent from the previous month, separate data showed earlier in the day.

Seoul stocks fell sharply despite Samsung Electronics predicting a recovery in the semiconductor market next year and September factory output coming in above forecasts.

The Kospi average fell 1.41 percent to 2,277.99 as the country's stock market regulator announced a wider probe into short-selling trades by foreign investment banks.

Samsung Electronics dropped 0.6 percent and No.2 chipmaker SK Hynix gave up 2.4 percent.

Australian markets edged up slightly, led by banks. The benchmark S&P/ASX 200 rose 0.12 percent to 6,780.70 while the broader All Ordinaries index gained 0.10 percent to close at 6,967.50.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index inched up 0.15 percent to end at 10,757.69.

U.S. stocks rallied overnight following last week's sell-off, as investors looked ahead to the Fed's rate decision and Apple's earnings.

The S&P 500 rebounded 1.2 percent after officially slipping into coercion territory. The Dow climbed 1.6 percent as McDonald's beat estimates for quarterly results.

The tech-heavy Nasdaq Composite gained 1.2 percent as Treasury yields dropped and oil prices tumbled, easing concerns around inflation and interest rates.