Markets in the Asia-Pacific were giving a mixed look on Wednesday just hours after Wall Street ended its four-day losing streak as global bonds rose as a result of the Bank of Japan adjusting its yield curve control tolerance.
However, Nikkei 225 was again leading the losses with the benchmark index falling fell 0.68 percent to 26.387.72. Similarly, the Topix lost 0.64 percent to 1,893.32.
On Tuesday, the Nikkei 225 and Topix fell 2.46 percent to 26,568.03 and 1.54 percent to 1,905.59 respectively.
Meanwhile, the Japanese yen was traded for 131.97 against the US dollar on Wednesday after losing the gains made a day earlier.
In South Korea, the Kospi erased earlier gains and traded 0.19 percent lower to 2,328.95 but the S&P/ASX 200 in Australia rose 1.29 percent to 7,115.1.
These gains came as Australian Foreign Minister Penny Wong is slated to meet her Chinese counterpart Wang Yi in Beijing. Wong told reporters before departing for the trip that she will push China to lift trade sanctions and seek consular access for two detained Australians.
And in Hong Kong, the Hang Seng Index gained 0.34 percent as Chief Executive John Lee is scheduled to travel to Beijing as part of his annual visit until Saturday to brief state leaders on the city’s economic, social and political situation.
In mainland China, the Shenzhen Component fell 0.34 percent to 10,912.08 and the Shanghai Composite was down 0.17 percent to 3,068.4.
However, SETI in Taiwan and NZX 50 in New Zealand made significant gains 0.45 percent and 0.41 percent respectively while Taiwan’s is slightly up 0.07 percent.
Stocks rose Tuesday as Wall Street shook off a surprise move from the Bank of Japan that sent global bond yields up. Investors also overlooked fears that a year-end rally may not come to pass.
The Dow Jones Industrial Average rose 92.20 points, or 0.28 percent, to close at 32,849.74. The S&P 500 gained 0.10 percent to 3,821.62, while the Nasdaq Composite ticked up 0.01 percent to end the session at 10,547.11.
Overnight, the Bank of Japan moved to widen its cap on the 10-year Japanese government bond yield, catching traders around the world off guard and sending stock futures down, initially. That added to pressure from other hawkish central banks, with both the European Central Bank and the Federal Reserve raising rates last week.
Stocks recovered later in the day as traders assessed central bank moves and bet that most will either stop hiking rates next year.
Even with Tuesday’s gains, stocks are on track to end the week and month in the red. The Dow is down 5.03 percent month to date. In December, the S&P 500 has shed 6.34 percent, and the Nasdaq has lost 8.03 percent.
A handful of big companies will report their quarterly results this week ahead of the Christmas holiday. Nike and FedEx are set to report after the bell.
This week promises lots of insight into the housing industry. Sales data for existing homes and new homes will be released Wednesday and Friday, respectively.
November’s personal consumption expenditures report, a preferred measure of inflation for the Fed, is due on Friday.