Business

Asia-Pacific Stocks Gain as Investors Weigh Economic Concerns

KAZUHIRO NOGI | AFP via Getty Images

Pedestrians cross a road in front of an electronic quotation board displaying the numbers of company stock prices on the Tokyo Stock Exchange in Tokyo on May 13, 2021.

  • Shares in the Asia-Pacific region were higher on Tuesday as investors weigh economic concerns.
  • In corporate news, Trip.com reported a net loss of 989 million Chinese yuan ($147.79 million) for the first quarter of 2022 after the U.S. market close.
  • Overnight in the U.S., the major indexes fell following a major rebound on Friday.

SINGAPORE — Shares in the Asia-Pacific region were higher on Tuesday as investors weighed economic concerns.

Hong Kong's Hang Seng index reversed earlier losses to climb 0.7% in its final hour of trade, while the Hang Seng Tech index gained 0.73%.

Technology investor Prosus NV will sell some of its stake in Tencent to fund a stock buyback of itself and parent Naspers, the Dutch firm said on Monday. Hang Seng heavyweight Tencent fell 4.02% in the last hour of trading.

Japan's Nikkei 225 rose 0.66% to close at 27,049.47, while the Topix gained 1.06% to 1,907.38.

In South Korea, the Kospi was up 0.84% at 2,422.09, while the Kosdaq declined 0.14% to 769.51.

Mainland Chinese markets were higher. The Shanghai Composite was up 0.89% at 3,409.21, and the Shenzhen Component advanced 1.23% to close at 12,982.69.

MSCI's broadest index of Asia-Pacific shares rose 0.29%.

Australia's S&P/ASX 200 was 0.86% higher at 6,763.6 at the end of the day.

"What we're actually starting to see is a little bit of evidence — it's very tentative, but a little bit of evidence — of investors looking to time the bottom in terms of the equity market in particular," said Dwyfor Evans, head of APAC macro strategy at State Street Global Markets.

"We are seeing a little bit more constructive behavior in terms of moving back into some of the most heavily sold off sectors," he told CNBC's "Capital Connection" on Tuesday.

In corporate news, Trip.com reported a net loss of 989 million Chinese yuan ($147.79 million) for the first quarter of 2022 after the U.S. market close.

The company said in a press release that its results were materially and adversely affected by Covid-19 disruptions in China. Trip.com's U.S.-listed shares fell 1.51% in after hours trade.

Weilong Delicious, a Chinese snack company, has reportedly revived its initial public offering in Hong Kong and could be listed in the second half of the year. Bloomberg reported that the company refiled a preliminary prospectus on Monday and that the company could raise $500 million.

Overnight in the U.S., the major indexes fell following a major rebound on Friday.

The Dow Jones Industrial Average slipped 62.42 points, or 0.2%, to 31,438.26. The S&P 500 fell 0.3% to 3,900.11, and the Nasdaq Composite dropped 0.7%, falling to 11,524.55.

"There is a clear lack of conviction by investors with light trading volumes favoring the notion of an exhausted market, with big declines set to be recorded this quarter, notwithstanding the outsized gains logged last week," Rodrigo Catril, a currency strategist at National Australia Bank, wrote in a note Tuesday.

"Investors remained wary of bear market rallies and could not shake off lingering U.S. recession worries," DBS Group Research strategists said in a note.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.938.

The Japanese yen traded at 135.73 per dollar, holding stronger than the 136 level. The Australian dollar was at $0.6938.

Oil futures rose in Asia's afternoon trade. West Texas Intermediate crude futures, the U.S. benchmark, increased 1.39% to $111.09 per barrel. International benchmark Brent crude was 1.38% higher at $116.68 per barrel.

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