CANBERA (dpa-AFX) - Asian stocks turned in a mixed performance on Tuesday as investors exercised caution after recent strong gains on hopes for a quick economic recovery from the coronavirus-induced downturn.
Underlying sentiment turned cautious after the World Bank warned the global economy will shrink by 5.2 percent this year, representing the deepest recession since the Second World War.
Chinese shares advanced ahead of consumer price inflation data for May due on Wednesday. The benchmark Shanghai Composite index rose by 0.62 percent to 2,956.11.
Hong Kong's Hang Seng index gained 1.13 percent to 25,057.22. Cathay Pacific shares entered a trading halt on news that the airline will get a HK$39bn (£4bn; $5bn) state-backed bailout.
Japanese shares fell after six days of gains. The Nikkei average dropped 87.07 points, or 0.38 percent, to 23,091.03, while the broader Topix index closed 0.14 percent lower at 1,628.43.
Exporters fell as the yen rose sharply against the dollar amid worries about increasing friction between the United States and China. Panasonic dropped 1 percent and Nissan Motor slumped 4.8 percent. In the tech sector, Advantest lost 3.9 percent and Tokyo Electron declined 2.7 percent.
Australian stocks surged as markets played catch up with the recent strong gains in global markets. The benchmark S&P/ASX 200 jumped 146.20 points, or 2.44 percent, to 6,144.90 as trading resumed after a holiday on Monday. The broader All Ordinaries index ended up 146.40 points, or 2.39 percent, at 6,262.90.
The big four banks rallied 5-6 percent. Miners BHP, Fortescue Metals Group and Rio Tinto rose between 2.3 percent and 3.6 percent. In the oil sector, Oil Search, Woodside Petroleum and Santos climbed 4-7 percent.
Gold miners bucked the uptrend, with Evolution Mining tumbling 6.4 percent and Newcrest Mining declining 2.3 percent.
CSL dropped 2.4 percent. The biotechnology giant said it has acquired Canadian clinical-stage biotechnology company Vitaeris for its research into the cause of rejection for transplanted kidneys.
Australia's business conditions and confidence improved in May but remained deeply negative, survey data from National Australia Bank showed today.
The business conditions index gained 10 points to -24 in May after hitting the lowest level since the global financial crisis. While improvement in conditions was broad-based across industries, conditions in services industries remained notably weaker.
Seoul stocks fluctuated before finishing modestly higher ahead of the U.S. Fed's monetary policy meeting. The benchmark Kospi inched up 4.63 points, or 0.21 percent, to 2,188.92.
Samsung Group companies were in focus after a court in Seoul rejected an arrest warrant for the conglomerate's de facto leader, Lee Jae-yong.
Market heavyweight Samsung Electronics rose 1.1 percent and Samsung Biologics advanced 1.8 percent while Samsung C&T shed 0.9 percent.
New Zealand shares gave up early gains to end sharply lower for the day after the government said it has eliminated transmission of the novel coronavirus and will lift all containment measures except for border controls. The benchmark NZX-50 index tumbled 225.47 points, or 1.96 percent, to 11,298.69.
U.S. stocks rose sharply overnight, reflecting growing optimism about the pace of economic recovery as businesses begin to reopen following the coronavirus lockdown.
The Dow Jones Industrial Average climbed 1.7 percent and the S&P 500 rallied 1.2 percent as economists officially declared the United States is in a recession.
The tech-heavy Nasdaq Composite gained 1.1 percent to hit a fresh record closing high.
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