Asian Shares Mixed As Investors Look To Key Central Bank Meetings

(RTTNews) - Asian stocks ended Tuesday's session on a mixed note, with weak manufacturing data from China and uncertainty over the U.S. debt ceiling limit keeping investors nervous.

Investors also looked ahead to the Fed and ECB meetings this week for additional clues on the economic and rate outlook.

The U.S. dollar, oil and gold all traded lower in Asian trade. The cost of insuring against a U.S. default hit fresh highs after U.S. Treasury Secretary Janet Yellen said the Treasury might run out of money to cover obligations as soon as June 1.

Mainland Chinese markets were closed for the Labour Day holiday. Hong Kong's Hang Seng index rose 0.20 percent to 19,933.81 as investors assessed mixed Chinese data released over the weekend.

An official survey showed contraction in China's manufacturing activity in April, casting doubt on the country's economic recovery. However, activity in the services sector grew at a healthy pace in the month.

Japanese shares fluctuated before ending slightly higher for the day. The Nikkei average hit a 16-month high before closing 0.12 percent higher at 29,157.95.

The broader Topix index settled 0.12 percent lower at 2,075.53 ahead of a break for Golden Week holidays, the upcoming Fed meeting and key U.S. payrolls data.

While a weaker yen helped lift exporters, financials lost ground amid jitters surrounding the U.S. banking system. Resona Holdings and Nomura Holdings gave up 1-2 percent.

Electronics maker Panasonic gained 2.4 percent and chip-testing equipment maker Advantest added 3.5 percent.

Across the Tasman, Seoul stocks climbed led by energy and chemical stocks. Leading refiner SK Innovation jumped 3.9 percent and battery components producer POSCO Future M soared 5.2 percent.

The Kospi average rallied 0.91 percent to 2,524.39 after data showed the country's headline inflation eased further in April to fall below 4 percent for the first time in 14 months.

Factory activity shrank for a tenth consecutive month in April while exports fell for the seventh consecutive month, separate reports showed.

Australian markets fell sharply and government bond yields jumped after a surprise rate hike of 25 bps by the country's central bank. The Reserve Bank also signaled further policy tightening to ensure that inflation returns to target in a reasonable timeframe.

The benchmark S&P/ASX 200 fell 0.92 percent to 7,267.40, dragged down by banks, miners and energy stocks. The broader All Ordinaries index ended 0.86 percent lower at 7,459.80.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up 0.29 percent to 12,037.81.

U.S. stocks ended slightly lower overnight as regulators seized First Republic Bank and sold all of its deposits and most of its assets to JPMorgan Chase.

On the economic front, a measure of U.S. manufacturing contracted for the sixth consecutive month in April but pulled off a three-year low as new orders improved slightly and employment rebounded.

The Dow and the tech-heavy Nasdaq Composite both slipped around 0.1 percent, while the S&P 500 finished marginally lower.