Asian stocks mostly gained on Tuesday, despite disappointing data from China, with Australia's shares climbing and its dollar falling after the Reserve Bank of Australia cut interest rates unexpectedly.
Japanese markets were shuttered for holiday
In Hong Kong, the Hang Seng index returned from long weekend to dock 390.11 points, or 1.9%, to 20,676.94
In Hong Kong, shares of index heavyweight HSBC added 0.9%, erasing losses after reporting earnings. During market trade, the bank reported a smaller-than-expected drop in first-quarter profit, with pretax profit falling 14% on-year to $6.1 billion U.S.
ISM manufacturing data for April came in at 50.8, down from 51.8 in March, weighed on the dollar. The final Markit U.S. manufacturing PMI fell to 50.8 in April from 51.5 in March.
The RBA cut its benchmark rate by 25 basis points to a record low 1.75%, noting that inflation data are unexpectedly low and that it is less concerned by the risk low rates pose to the housing market. A majority of economists polled by Reuters had expected no change.
The Australian dollar dropped to as low as $0.7553 U.S. after the decision, from levels a tad above $0.77 before the announcement. The Australian dollar recovered a bit to fetch $0.7613
In Australia, shares of ANZ surged 5.6%, erasing early losses of as much as 4%, despite the bank reporting that its fiscal first-half profit tumbled more than 20%, coming in below expectations, and spurring the bank to cut its dividend. That follows a selloff in banks Monday after Westpac's earnings also missed expectations, which had knocked ANZ's shares down 2.2%.
Energy shares were mostly lower, with Australia's Woodside shedding 0.4% and Hong Kong-listed Petrochina off 1.1%
In Singapore, shares of DBS added 0.52%, bucking a 0.9% decline in the benchmark Straits Times Index, after the bank reported before market open that net profit for the first quarter ended March 31 was 1.20 billion Singapore dollars ($900 million U.S.), up 6% on-year after excluding one-time items in the previous period. This beat forecasts for S$1.017 billion.
In Australia, Air New Zealand climbed 4% after media reported the company expects fuel prices to remain favorable, but shares of Virgin Australia tumbled 3%, extending Monday's 5.7% drop after the company's announcement that it will cut capacity by 5.1% in the fiscal fourth quarter.
CHINA
The CSI 300 Index gained 56.8 points, or 1.8%, to 3,213.54
Regional markets largely shrugged off a disappointing survey on China's manufacturing sector.
The China Caixin manufacturing purchasing managers index (PMI) for April fell to 49.4 from March's 49.7, shrinking for a 14th month and coming in below a Reuters forecast for 49.9. Levels below 50 indicate contraction.
In other markets;
In Singapore, the Straits Times Index returned from holiday to shed 27.32 points, or 1%, to 2,811.20
In Taiwan, the Taiex Index fell 83.78 points, or 1%, to 8,294.12
In Korea, the Kospi index restored 8.26 points, or 0.4%, to 1,986.41
New Zealand’s NZX 50 gained back 51.2 points, or 0.8%, to 6,843.01
The ASX 200 regained 110.87 points, or 2.1%, to 5,353.84
