Asian Shares Retreat As Rate Cut Hopes Fade

(RTTNews) - Asian stocks declined on Tuesday in the absence of Wall Street cues and heightened geopolitical tensions.

Gold prices were subdued in Asian trade as the dollar and bond yields rose on waning expectations of an early interest rate cut in the U.S. and Europe.

Oil ticked higher after reports that Houthi rebels targeted a U.S.-owned cargo ship with a ballistic missile off the coast of Yemen.

Chinese shares eked out modest gains as major Chinese lender Ping An Bank Co. put 41 firms on a list of developers eligible for its funding support, marking the latest move aimed at reviving the nation's crisis-hit property sector.

Additionally, China's $1.24 trillion sovereign wealth fund vowed to help with risk mitigation and market stabilization in 2024.

China's Shanghai Composite index rose 0.27 percent to 2,893.99 while Hong Kong's Hang Seng index fell 2.16 percent to 15,865.92.

Internet giant Baidu ended little changed after plunging over 11 percent on Monday triggered by a report of links to Chinese military AI research.

Japanese markets fell notably to snap a record-breaking rally as investors locked in profits.

The Nikkei average dropped 0.79 percent to 35,619.18, snapping a six-day winning streak that lifted the benchmark index to 34-year highs.

The broader Topix index fell 0.82 percent to 2,503.98 as data showed persistent weakness in Japanese producer price index inflation.

Seoul stocks fell sharply, dragged down by heavyweight technology stocks. The Kospi average ended down 1.12 percent at 2,497.59 in the wake of escalating geopolitical tensions surrounding the Korean Peninsula.

Australian stocks closed at one-month lows, dragged down by banks, miners and energy stocks. The benchmark S&P/ASX 200 fell 1.09 percent to 7,414.80, logging its worst single-day loss since Jan. 3.

The broader All Ordinaries index settled 1.07 percent lower at 7,647.10 ahead of the release of China's economic data on Wednesday and Australia's employment data on Thursday.

Mining heavyweights BHP and Rio Tinto fell over 1 percent each, tracking lower iron ore prices after China's central bank wrong footed markets by skipping on a rate cut Monday.

After releasing its fourth-quarter production results, Rio Tinto said it expects a gradual recovery in China's economy in 2024.

Banks NAB and Westpac both fell around 1 percent while Woodside Energy and Santos lost 1.6 percent and 1.8 percent in the energy sector.

A private survey showed earlier in the day that Australian consumer sentiment worsened in January amid persistent concerns over high inflation and interest rates.

Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 finished marginally lower at 11,770.76.