Asia ends mixed, central banks on watch

(MENAFN– ecpulse)

Asian stocks closed mixed on Tuesday, as traders took the sidelines ahead of key policy decision from the European Central Bank (ECB) and U.S. employment report due later this week.

Equities swung between gains and losses in late Asian trade, with markets in Japan falling for the third day as investors weighed more corporate earnings amid the stronger yen. China dropped for the second day ahead of high-level policy meeting in Beijing next week. Australia rose the most in a week as the Reserve Bank of Australia (RBA) kept rates steady.

- Nikkei 225 rose 0.17% to 14,225.37

- Topix was nearly flat at 1,182.58

- S&P ASX 200 gained 0.77% to 5,431.96

- Shanghai Composite rose 0.35% to 2,157.24

- Kospi fell 0.56% to 2,013.93

- Hang Seng shed 0.65% to 23,038.95

The RBA kept its cash rate unchanged for the third month in a row at record low of 2.5%, relaxing traders to focus on the ECB meeting later this week. Falling inflation in the euro area has fueled bets the ECB may soon cut its interest rates, but most analysts suggest that such a move needs further deterioration in the 17-nation economy.

Market participants continue to anticipate the release of infamous October non-farm payrolls (NFP) figures due to be released on Friday, highlighting the possibility of when the Federal Reserve may start tapering its monthly bond purchases due to the recent government shutdown and disappointing economic data.

The stocks might be muted across the board through the course of the week as the U.S. economic grind continues, featured by Friday`s employment report. In U.S. economic news out Monday, U.S. factory orders grew 1.7% in October, meeting analysts` median forecast.

The U.S. agenda also holds some first-tier releases including the ISM services index on Tuesday and third-quarter gross domestic product (GDP) as well as weekly jobless claims on Thursday.