On Tuesday, markets in Asia-Pacific were mixed, as Australian miners and Chinese real estate companies saw strong rallies in their shares that were offset by muted Hong Kong and Japanese markets.
Mainland Chinese markets ended the day in positive territory. There was a 0.05% gain in the Shanghai Composite, as it reached 3,277.89.
A 0.08% rise was also recorded in the Shenzhen Component, as it reached 12,470.11. There was a 1.05% decline in the Hang Seng index of Hong Kong.
A 0.02% decrease was also seen in the MSCI index of Asia-Pacific shares not including Japan. As for the Japanese Nikkei 225 index, it ended the day flat at 28,868.91.
There was a 0.15% decline too in the Topix index, while that came down to 1,981.96. A 0.22% gain was recorded in Kospi index, as it settled at 2,533.52.
A 0.58% increase was seen in the Australian S&P/ASX 200 index to reach 7,105.4, as major miners all posted strong returns.
This was after a 4.09% rise in BHP, after it posted a sterling result of profits for the full year.
The Office of the Economic Adviser in India published new data showing a drop in the annual wholesale inflation rate in July to 13.93% from June’s 15.18%.
This was significantly better than the analyst estimates of 14.2%. This wholesale price inflation is considered an indicator that calculates the change in prices of wholesale goods before they reach the retail market.
The ministry of commerce and industry in India released data showing that the inflation had fallen because of a reduction in prices of wholesale manufactured goods and foods.
But, this was offset by higher prices of power and fuel. Market analysts said that this was the biggest monthly decline recorded in the food index since it began in 2012.
In addition, this drop in inflation was in line with the decline in consumer food inflation (CPI) that had been reported in the previous week.
There was a surge in real estate stocks (Chinese) after reports that China Bond Insurance Co had been told by Beijing to offer guarantees for onshore issuance of bonds.
This includes Longfor Group, which is listed in Hong Kong. There was a 1.73% drop in the Hang Seng index because of a decline in major stocks, such as Petrochina, Ping An Insurance, and Tencent.
However, Chinese developers such as Longfor did record some green shoots. There was an 11% gain in Longfor shares, while a 9% rise was recorded in Country Garden.
Some of the others that also rallied included a 1.26% rise in R&F Properties, a 3.2% increase in China Resources Land and a 1.72% rise in China Vanke.
The residential property market in China has been struggling for quite a while and now regulators are planning on offering a select few private developers liquidity support.
However, analysts said that investors would remain skeptical until they find evidence of private developers getting the benefits of government funding.