Asian Shares Gain As China Extends Property Support Policy

Asian stocks advanced on Tuesday, the dollar dipped and U.S. Treasury yields drifted lower after comments from several Fed officials suggested the U.S. central bank is nearing the end of its rate-hiking cycle.

Markets expect U.S. inflation data due on Wednesday to provide additional clues on the interest rate outlook.

Sentiment was also underpinned after the People’s Bank of China said it would extend financial support for the beleaguered property sector until end-2024.

Chinese shares eked out modest gains as Beijing signaled more stimulus to aid its property sector.

The benchmark Shanghai Composite index rose 0.55 percent to 3,221.37. Hong Kong’s Hang Seng index ended 0.97 percent higher at 18,659.83.

Japanese shares fluctuated before ending on a flat note. The Nikkei average finished marginally higher at 32,203.57 while the broader Topix index dropped 0.31 percent to 2,236.40.

Automakers Honda Motor, Toyota and Nissan fell 1-2 percent as the yen rose past 141 per dollar for the first time in nearly a month. Drug makers Eisai and Daiichi Sankyo fell 3-4 percent.

Chip-testing making equipment maker Advantest soared 4.3 percent, Tokyo Electron added 1.1 percent and Screen Holdings surged 2.7 percent.

Sumco Corp climbed 4.8 percent after reports that the government would give the major producer of silicon wafers a subsidy of up to 75 billion yen ($530 million) to fund additional capacity.

Seoul stocks rose sharply on expectations that U.S. inflation data due on Wednesday could signal a further moderation in price pressures. The Kospi average jumped 1.66 percent to 2,562.49, snapping its five-session losing streak.

Market bellwether Samsung Electronics rallied 2.9 percent, No. 2 chipmaker SK Hynix added 2.8 percent and leading wireless services provider SK Telecom gained 2.1 percent.

Australian markets posted strong gains led by a rally in heavyweight mining and energy stocks. Gold miners and banks also posted widespread gains.

The benchmark S&P/ASX 200 jumped 1.50 percent to 7,108.90 while the broader All Ordinaries index ended 1.51 percent higher at 7,315.80.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index ended marginally lower at 11,909.81 after a choppy session.

U.S. stocks rose in cautious trade overnight after U.S. Treasury Secretary Janet Yellen said her talks with senior Chinese officials were productive and a trio of Fed policymakers reiterated the need for more rate hikes.

The Dow gained 0.6 percent, while the S&P 500 and the tech-heavy Nasdaq Composite both added around 0.2 percent.

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