Asian equities posted a mixed performance on Tuesday, as investors assessed persistent global trade tensions and braced for a packed week of earnings from major US corporates.
In China, optimism about upcoming government action to tackle industrial overcapacity supported gains, while South Korean and Japanese stocks struggled to find clear direction.
Hong Kong stocks climb to multiyear high
Hong Kong stocks extended their rally for a third consecutive session, with the Hang Seng Index closing 0.3 percent higher at 25,057.11 — its highest level since November 18, 2021.
Gains were underpinned by strong performances from solar and electric-vehicle makers, amid growing speculation that a forthcoming high-level government meeting in Beijing could yield targeted support for emerging industries.
The Hang Seng Tech Index also added 0.1 percent. Among the session’s top performers were Xinyi Solar Holdings and BYD, which rose on expectations that China will implement new policies to rein in overcapacity in sectors such as solar panels, electric vehicles, and lithium batteries.
On the downside, humanoid robot manufacturer UBTech Robotics slumped following the announcement of a share placement plan.
China’s CSI 300 Index advanced 0.8 percent, while the Shanghai Composite gained 0.6 percent.
Shares of infrastructure builders and construction material suppliers rose sharply after China announced the commencement of a $170 billion hydropower dam project in Tibet, sparking hopes of increased demand in those sectors.
Investors are now closely watching a scheduled Politburo meeting later this month, led by President Xi Jinping.
Markets expect the meeting to offer policy direction on managing excess capacity in strategic sectors, as well as the broader economic approach to countering ongoing trade disputes and weakness in the property market.
Japanese stocks edge lower after political turbulence
Japanese markets closed mixed following weekend election results that saw the ruling coalition lose its upper house majority.
The Nikkei 225 Index slipped 0.11 percent to 39,774.92, while the broader Topix index edged up 0.02 percent to 2,836.19.
Among key movers, Japan Steel Works, Tokyo Electric Power Company Holdings, and Mitsubishi Heavy Industries rallied between 5 and 6 percent.
On the other hand, Sumitomo Pharma declined 5 percent and Ebara Corporation fell 4.3 percent.
SoftBank Group rose 2.9 percent, extending gains for a third consecutive day.
Other regional markets
In South Korea, the Kospi Index dropped 1.27 percent to 3,169.94, dragged down by weakness in large-cap technology shares amid ongoing uncertainty over US tariff policy and caution ahead of corporate earnings reports.
Samsung Electronics lost 2.7 percent, while SK Hynix declined 1.5 percent.
Australian stocks closed slightly higher after minutes from the Reserve Bank of Australia’s July meeting indicated a broadly shared view that interest rates may see further gradual reductions.
The S&P/ASX 200 index added 0.10 percent to end at 8,677.20, supported by gains in mining stocks amid stronger commodity prices.
Indian equity benchmarks ended largely unchanged in a choppy session on July 22, as gains in select large-cap stocks were offset by selling pressure in broader markets.
The Sensex slipped 13.53 points, or 0.02 percent, to close at 82,186.81, while the Nifty declined 29.80 points, or 0.12 percent, to settle at 25,060.90.
Wall Street earnings loom large
The global equity landscape remains tethered to expectations around earnings from major US companies.
This week’s slate includes results from Alphabet, Tesla, General Motors, and Intel — all of which are likely to offer insight into how corporations are managing cost pressures, supply chains, and trade-related disruptions.
With the outlook still clouded by tariff threats and policy uncertainty in major economies, market participants are watching both corporate performance and macro signals closely.
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