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Asian shares higher ahead of company earnings | |
(about 2 hours later) | |
Asian markets reversed early losses to trend higher despite investors being cautious ahead of company earnings reports. | |
A strong US dollar and economic woes in Europe could have had an impact on profits for firms in the third quarter, according to analysts. | A strong US dollar and economic woes in Europe could have had an impact on profits for firms in the third quarter, according to analysts. |
In Japan, the Nikkei 225 was flat ahead of the Bank of Japan's (BOJ) policy meeting, while the Topix gained 0.45%. | |
The Japanese yen weakened against the dollar, rising to 109.15. | |
The yen's movements will be closely watched as the BOJ meets to discuss its monetary stimulus plans. | |
"We expect the BOJ to keep monetary policy on hold, but it could lower its economic assessment to reflect continuing data weakness" since the tax hike, strategists at Barclays said. | "We expect the BOJ to keep monetary policy on hold, but it could lower its economic assessment to reflect continuing data weakness" since the tax hike, strategists at Barclays said. |
In Hong Kong, stocks were higher 0.5%, ending a two-day rally after pro-democracy protests in the city started to taper. | |
The Hang Seng Index gained 94.81 points to 23,409.85 in morning trade. | |
RBA holds rates | |
Australian shares led losses in the region after the Reserve Bank of Australia's (RBA) kept interest rates at a record low of 2.5% on Tuesday. | |
The benchmark S&P/ASX200 index was down 0.5% at 5,267 points. | |
The RBA was widely expected to keep interest rates unchanged after a private gauge of consumer prices on Monday showed inflation slowed in September. | |
A cooling mining sector and lower export prices have also been a drag on the Australian economy. | |
The Australian dollar, meanwhile, weakened further to $0.8755 against the US dollar on the RBA's comments that it was still too strong. | |
In South Korea, Kospi shares were up 0.2% despite heavyweight Samsung Electronics reporting a big fall in expected third quarter profit. | |
The world's largest smartphone maker said its quarterly operating profit is estimated to have fallen 60% from the previous year as sales for its Galaxy handsets slowed. | The world's largest smartphone maker said its quarterly operating profit is estimated to have fallen 60% from the previous year as sales for its Galaxy handsets slowed. |