Despite rate cuts, China, Hong Kong settle in red

Tokyo: Asian shares were trading mixed on Tuesday a day after Chinese markets reopened from a long Lunar New Year holidays. Wall Street trading was closed Monday in the United States for President’s Day. Investors were generally turning less optimistic because of expectations that higher interest rates would likely kick in soon.

China’s central bank kept its 1-year loan prime rate unchanged on Tuesday, but cut its 5-year rate by 25 basis points to 3.95 per cent. Hong Kong’s Hang Seng shed 0.3 per cent to 16,114.68, while the Shanghai Composite lost 0.1 per cent to 2,907.02. Japan’s benchmark Nikkei 225 lost early gains to be little changed, inching up less than 0.1 per cent in morning trading at 38,473.21. Australia’s S&P/ASX 200 slipped 0.3 per cent to 7,641.30. South Korea’s Kospi lost nearly 1.0 per cent to 2,654.72. A recent US report on inflation at the wholesale level has indicated that rising prices still continues.