Asian stocks mixed on China tightening fears; Nikkei flat

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Investing.com - " Asian stocks were mixed during Tuesday's session amid fear's China is considering a more stringent approach to monetary policy.

In Asian trading Tuesday, Japan's Nikkei 225 was flat despite a press report out earlier in the session that indicates economists are doubtful the country can reach 2% inflation by 2015.

Meeting that goal is a cornerstone of Prime Minister Shinzo Abe's efforts to jolt the world's third-largest economy.

Hong Kong's Hang Seng lost 0.60% while the Shanghai Composite dropped 0.40% on reports that developers in some major Chinese cities will not be allowed to raise property prices before the end of this year.

Reports also emerged that banks in some Chinese cities are requiring higher down payments for investment properties. China's four mega banks are dealing with the largest level bad loans in three years.

Australia's S&P/ASX climbed 0.72% after the Reserve Bank of Australia kept interest rates at 2.5%. Though no rate cut was expected, RBA surprised markets by not including language in its statement that implied rates are not off the table.

"In Australia, the economy has been growing a bit below trend over the past year and the unemployment rate has edged higher. This is likely to persist in the near term, as the economy adjusts to lower levels of mining investment. Further ahead, private demand outside the mining sector is expected to increase at a faster pace, though considerable uncertainty surrounds this outlook," said RBA Governor Glenn Stevens in a statement.

New Zealand's NZSE 50 rose 0.57% while South Korea's Kospi dipped 0.67% as traders continued to lock in profits after a recent surge in South Korean shares.

Singapore's Straits Times Index gained 0.27% while S&P 500 futures inched down 0.02% a day after the benchmark U.S. index rose 0.36%.


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This article appears in: Investing , Forex and Currencies

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