Asian Shares Mixed In Cautious Trading

Asian stocks turned in a mixed performance on Monday amid interest rate uncertainty and concerns over a possible government shutdown in the U.S.

The dollar and Treasuries gained ahead of crucial U.S. inflation data due this week, while gold struggled to gain after falling by the most in more than a month last week. Oil prices traded lower in Asian trade after rising sharply on Friday. Markets were closed in Singapore and Malaysia for a holiday.

China’s Shanghai Composite Index rose 0.3 percent to 3,046.53 on optimism over an upcoming summit between U.S. President Joe Biden and his Chinese counterpart Xi Jinping in San Francisco this week.

Hong Kong’s Hang Seng Index jumped 1.3 percent close at 17,426.21. JD.com rallied 1.8 percent and Alibaba Group Holding added 1.3 percent after reporting a pickup in sales for Singles’ Day.

Japanese shares gave up early gains to end on a flat note as data showed producer price inflation in the country fell sharply in October to hit a two-year low.

The Nikkei 225 Index finished marginally higher at 32,585.11 after rising more than 1 percent in early trading. The broader Topix ndex settled with a negative bias at 2,336.62.

Cosmetics maker Shiseido plunged 14.3 percent after slashing its annual profit forecast. Chip-related stocks followed their U.S. peers higher, with Advantest, Tokyo Electron and Screen Holdings gaining between 1.3 percent and 1.7 percent.

Education service provider Benesse Holdings soared 20.5 percent after announcing it will go private through a management buyout scheme.

Seoul stocks edged lower as positive exports data was offset by concerns of a potential U.S. government shutdown following a cut in Moody’s rating outlook for the United States. The Kospi slipped 0.2 percent to 2,403.76.

Australian markets closed lower, dragged down by financials and gold miners. The benchmark S&P/ASX 200 Index dropped 0.4 percent to 6,948.80 as investors fretted about further upside surprises to domestic inflation. The broader All Ordinaries Index settled 0.4 percent lower at 7,145.

Lender ANZ Group Holdings tumbled 3 percent after its annual profit fell short of market forecasts. TPG Telecom slumped 11.7 percent after ending talks with Vocus Group for the sale of some of its non-mobile fibre assets.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 Index fell 0.4 percent to 11,093.03, marking its lowest close since November 2.

U.S. stocks rallied on Friday to notch a second week of gains as Treasury yields stabilized after surging the previous day.

Investors shrugged off reports showing deteriorating consumer sentiment and rising inflation expectations.

The tech-heavy Nasdaq Composite surged 2.1 percent to log its best single-day gain since May, while the Dow and the S&P 500 climbed 1.2 percent and 1.6 percent, respectively, to reach their best closing levels in well over a month.

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