Asian stocks steadied on Tuesday after a recent string of losses on worries that efforts by central banks to curb inflation may trigger a global recession.
The dollar rally paused and U.S. Treasury yields retreated from multi-year highs, helping investors look for bargains in beaten-down stocks.
Chinese mainland markets rose after the People’s Bank of China injected about $24.7 billion of liquidity via repo market operations to maintain liquidity in the banking system ahead of the quarter’s end.
Investors shrugged off data showing that profits at Chinese industrial firms fell further in August amid COVID woes, a weakening yuan and a power shortage.
The benchmark Shanghai Composite Index rallied 1.4 percent to 3,093.86, while Hong Kong’s Hang Seng Index finished marginally higher at 17,860.31.
Japanese shares rebounded after falling sharply in the three previous sessions. The Nikkei 225 Index rose 0.5 percent to 26,571.87, while the broader Topix ended 0.5 percent higher at 1,873.01.
Automakers gained ground, with Toyota Motor, Honda and Nissan rising 1-2 percent as Finance Minister Shunichi Suzuki warned against speculative moves in the currency market and the Bank of Japan conducted another unscheduled operation to curb rising yields.
Seoul stocks ended slightly higher to snap a four-day decline on concerns over aggressive monetary tightening moves in major economies.
The Kospi ended 0.1 percent higher at 2,223.86 after a survey showed consumer confidence in the country strengthened in September. Automaker Hyundai Motor paced the gainers to close 1.9 percent higher at 186,000 won.
Australian markets bounced back, led by gains in the resource sector. The benchmark S&P ASX 200 Index rose 0.4 percent to 6,496.20, while the broader All Ordinaries index settled 0.4 percent higher at 6,696.50.
BHP, Rio Tinto, Fortescue Metals Group and Mineral Resources jumped 3-6 percent. Star Entertainment added 1.1 percent. The company said it has developed a comprehensive remediation plan after it was found unfit to hold a casino license in Sydney.
Across the Tasman Sea, New Zealand’s benchmark NZX-50 Index plunged 1.9 percent to 11,214.49 as trading resumed after a long holiday weekend.
U.S. stocks extended their losing streak to a fifth day on Monday as investors fretted over a combination of interest rate, currency and economic risks.
The Dow fell 1.1 percent to fall into a bear market for the first time in more than two years as recessions fears grew.
The S&P 500 lost 1 percent to fell below its June closing low and the tech-heavy Nasdaq Composite shed 0.6 percent.
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