Asian Shares Mixed On Growth Worries

(RTTNews) - Asian stocks ended Tuesday's session on a mixed note after the latest business surveys showed global factory activity slumped in June amid rising interest rates.

Gold struggled for direction and the dollar edged lower in holiday impacted trade, while oil prices rose about 1 percent after Saudi Arabia and Russia announced an extension of their production cuts to prop up prices.

Investors looked ahead to the release of the Fed's meeting minutes and U.S. employment data later this week for insights into future interest rate hikes.

Chinese shares ended on a flat note, with the benchmark Shanghai Composite finishing marginally higher at 3,245.35 after the government tightened controls to curb chipmaking material exports ahead of the Beijing trip of U.S. Treasury Secretary Janet Yellen.

Hong Kong's Hang Seng index advanced 0.57 percent to 19,415.68 after data showed retail sales continued to improve in May.

Japanese shares pulled back from a 33-year high as traders watched for any potential intervention by the government in currency markets. A market holiday in the U.S. added to the cautious mood.

The Nikkei average fell 0.98 percent to 33,422.52, while the broader Topix index closed 0.62 percent lower at 2,306.37.

Drug maker Daiichi Sankyo lost nearly 15 percent after high level results of an experimental cancer drug developed with AstraZeneca raised safety and efficacy concerns.

Peers Astellas Pharma and Chugai Pharmaceutical gave up 2.8 percent and 2.6 percent, respectively. Higher yields lifted banks, with Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial climbing 2-4 percent.

Seoul stocks closed lower on profit taking after recent gains. The Kospi average dropped 0.35 percent to 2,593.31, dragged down by battery makers and IT stocks.

Australian markets eked out modest gains after the Reserve Bank of Australia kept its key lending rate unchanged, saying inflation in the country has "passed its peak."

The benchmark S&P/ASX 200 rose 0.45 percent to 7,279, marking its highest close since June 21 led by financial stocks. The so-called big four banks all ended up more than 1 percent.

Gold miners and energy stocks also posted solid gains. The broader All Ordinaries index settled 0.49 percent higher at 7,478.90.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index gained 0.53 percent to close at 11,980.33.

Overnight, U.S. stocks eked out modest gains amid an abbreviated trading session ahead of the Independence Day holiday.

Higher yields lifted banks and Tesla reported stronger-than-expected quarterly sales, helping offset data showing U.S. manufacturing contracted in June for an eighth straight month.

The Dow edged up marginally, the S&P 500 gained 0.1 percent and the the-heavy Nasdaq Composite rose 0.2 percent.