Beijing, China (BBN)-Chinese shares traded higher on Tuesday morning after a fresh stimulus push from the central bank to boost liquidity.
The mainland benchmark Shanghai Composite rose 0.3% to 2,696.96 points, reports BBC.
On Monday, the People’s Bank of China unexpectedly lowered its Reserve Rate Ratio, cutting the amount of cash the country’s lenders must hold in reserve.
The move was designed to boost liquidity and provide more stimulus to its slowing economy.
It was the first such cut since October and comes after a string of volatile days on the mainland’s stock markets.
Fresh economic data out on Tuesday though gave little grounds to reassure investors.
The closely watched Purchasing Manager’s Index, a gauge for the manufacturing sector, shrank more than expected in February.
The PMI index stood at 49.0, down from 49.4 the previous month. Any reading below 50 indicates a contraction of the sector.
Hong Kong’s Hang Seng index rose by 0.7 per cent to 19,249.75 points.
WEAK JAPAN OUTLOOK
In Japan, shares fell as fresh economic data suggested the eagerly awaited recovery remained elusive.
The Nikkei 225 fell 1.1 per cent to 15,857.37 points.
Earlier, official data showed that household spending was down 3.1 per cent in January, compared to a year earlier.
Along with disappointing company spending, it suggests that efforts to boost investment and domestic spending have so far failed to take effect.
STRONG MINING STOCKS
In Australia, the ASX/200 index was trading flat at 4,881.20 points.
In contrast, commodity giants BHP Billiton and Rio Tinto rose by 2.4 per cent and 2.9 per cent respectively on hopes for a recovery of oil and commodity prices.
Gold mining company Newcrest climbed almost 5% on the strengthening price of the precious metal.
In South Korea, the stock market remained closed for a national holiday.
BBN/SK/AD
