Asian stocks traded narrowly mixed on Tuesday as investors digested a batch of mixed Chinese PMI data and the Reserve Bank of Australia’s decision to keep rates unchanged amid persistent inflation risks.
China’s official manufacturing PMI showed contraction for a sixth straight month, while the private Caixin survey signaled the strongest factory rebound in nearly half a year. The divergence between manufacturing and services highlighted the uneven nature of China’s economic recovery. Analysts now expect Beijing to roll out additional stimulus as earlier support measures lose steam.
In Australia, the Reserve Bank of Australia (RBA) kept its cash rate at 3.60%, with all policymakers voting to hold steady. The central bank noted that while inflation has eased, it remains above target and the labor market is still tight. Economists at Capital Economics expect rate cuts to resume later this year.
Across regional markets, Japan’s Nikkei 225 rose 0.1%, and the TOPIX gained 0.4%, though gains were capped by a stronger yen. The KOSPI in South Korea and Singapore’s Straits Times Index were little changed, while India’s Nifty 50 traded cautiously ahead of Wednesday’s RBI policy decision.
Overnight gains on Wall Street lent modest support, but investor sentiment remained fragile as the U.S. faces a potential government shutdown and President Donald Trump announced new tariffs on lumber and wood products.