The benchmark index of Asian stocks swung between gains and losses on a day when growth in the US industrial services sector fueled speculation that the stimulus tapering will come sooner than expected. Among rising stocks, Commonwealth Bank, Australia's largest lender, gained 1,4% at a record price after announcing a 14% rise in first-quarter cash earnings on lower spending from “ bad debt”.
Conversely, a poor performance looms for HTC in Taiwan after the smartphone maker, which posted its first losses last month, forecast revenue lower than analysts' expectations for the second consecutive quarter.
The MSCI Asia Pacific index was up 0,1% to 141.04 as of 9:25 am in Tokyo, reversing a 0,1% loss before markets opened in China and Hong Kong. The measure has risen 13% since May 20, after reaching a low on June 25. Of the companies in the basket that reported quarterly results, nearly half had better-than-expected profits and 53% better-than-expected revenues.
"We continue to see a cautious tone on global equity," said Stan Shamu, market strategist at IG in Melbourne, in a note. “A higher-than-expected ISM non-manufacturing index is a strong signal in favor of tapering.” Japan's Topix was up 0,3% during the morning, while Australia's S&P/ASX 200 fell by the same percentage. The South Korean Kospi and the New Zealand NZX 50 were up by 0,1 and 0,2 percent respectively.
