Asian Shares Mixed In Thin Holiday Trade

(RTTNews) - Asian stocks turned in a mixed performance in thin holiday trade on Monday, with markets in Hong Kong, New Zealand and Australia closed for holidays.

The dollar held steady as soft U.S. inflation data boosted hopes that the Federal Reserve could cut interest rates in June.

A closely monitored gauge of U.S. inflation rose moderately in February 2024 and the cost of services outside housing slowed considerably, increasing the likelihood of an interest rate cut at the Fed's June meeting.

The personal consumption expenditures (PCE) price index rose 0.3 percent in February while economists had forecast a 0.4 percent rise.

At the same time, robust consumer spending underscored the residence of the U.S. economy.

The latest U.S. inflation data is "along the lines of what we would like to see," Fed Chair Jerome Powell said on Friday at a conference and repeated the central bank is no hurry to cut interest rates. He also acknowledged the risks of leaving interest rates where they are now.

Gold continued its historic run to trade at a record high in Asian trading while oil edged up slightly amid expectations of tighter supply from OPEC+ cuts and attacks on Russian refineries.

China's Shanghai Composite index jumped 1.19 percent to 3,077.38 after an official survey showed manufacturing activity expanded in March. The purchasing managers index rose to 50.8 from 49.1 in February.

Also, the Caixin Global manufacturing survey for March showed China's factory activity expanded at its fastest rate in 13 months. The corresponding PMI inched up to 51.1, above expectations for 51.

Japanese markets fell sharply to hit a two-week low as the yen pinned near levels that have traders on guard for a currency intervention.

Japan's Q1 quarterly Tankan survey unveiled mixed economic sentiment among the nation's large businesses.

The main index of sentiment among big manufacturers fell to +11 in March from +13 in the December survey while a reading on the country's services sector reached a 33-year high in the first quarter.

The Nikkei average tumbled 1.40 percent to 39,803.09, marking its lowest close since March 18. The broader Topix index settled 1.71 percent lower at 2,721.22.

Chip-related companies led losses, with Tokyo Electron and Advantest falling 3.2 percent and 5 percent, respectively.

Automaker Toyota Motor slumped and heavy machinery manufacturers such as Kawasaki Heavy Industries and Mitsubishi Heavy Industries lost 4-6 percent.

South Korean stocks ended on a flat note, with the Kospi average finishing marginally higher at 2,747.86 - extending gains for a second day running on revived hopes for U.S. rate cuts. Korean Air, Hanjin KAL Corp and JejuAir jumped 2-4 percent.