Asian stocks ended mostly higher in thin and directionless trading on Tuesday as investors positioned themselves ahead of Fed Chairman Ben Bernanke's press conference tomorrow after the conclusion of a two-day policy meeting.
Investors seem to believe that the Fed has no compelling reason to scale back its stimulus measures anytime soon. U.S. housing data due later in the day will provide further clues as to whether the Fed will pullback its $85 billion a month bond-buying program in the coming months, albeit gradually.
Japan's Nikkei index eased 0.2 percent on jitters over a possible change in Fed's future policy course after the Financial times reported that Bernanke would likely signal the central bank is close to tapering down bond purchases, but could balance that by saying subsequent moves depend on what happens in the economy. Textiles, transport and pharmaceutical companies declined, while mining and insurance firms gained ground.
Astellas Pharma and Takeda Pharmaceutical fell about 2 percent each on profit taking. Sony shares soared 4.4 percent after U.S-based hedge fund Third Point LLC urged the consumer electronics giant to spin off its entertainment division and reiterated its offer to serve on Sony's board of directors. Realty stocks saw bargain hunting after sharp losses the day before. Tokyo Tatemono jumped 5.4 percent and Nomura Real Estate rallied 3.5 percent. In economic news, Japan's industrial production grew less than previously estimated in April, final data from the Ministry of Trade and Industry showed. Industrial production rose 0.9 percent in April from the previous month, revised down from a 1.7 percent growth reported in the preliminary report, reflecting a change in the base year. On an annual basis, output fell 3.4 percent in April.
China's Shanghai Composite index closed 0.1 percent higher in thin trading, while Hong Kong's Hang Seng index ended little changed. Property developers drifted lower in Hong Kong after official data showed property prices in the mainland rose at the fastest pace in more than two years in major cities in May, defying tougher government curbs to rein in prices.
Australian shares ended off their day's lows as the minutes from the Reserve Bank of Australia's June 4 meeting showed the central bank still has an easing bias because inflation remains in check. The easing might become necessary down the road as domestic growth remained slightly below trend through the last four quarters, the RBA said. The central bank is counting on further falls in the Australian dollar to help rebalance economic growth. The benchmark S&P/ASX 200 fell over a percent early in the session before recouping its loss to finish 0.2 percent lower at 4,814.
Among major banks, NAB shed 0.6 percent, ANZ eased 0.3 percent and Westpac slipped 0.1 percent, but Commonwealth edged up marginally. Top miners BHP Billiton and Rio Tinto slid less than half a percent each, while smaller rival Fortescue Metals Group added 1.5 percent. Shares of Elders plummeted 22 percent on reports that the company has shunned a takeover bid for its rural services division by rival Ruralco.
South Korea's Kospi average rose 0.9 percent to regain the 1,900 mark as investors went bargain hunting in blue-chip stocks after the benchmark index hit a fresh seven-month low the previous day. Samsung Electronics rose 1.5 percent, while LG Electronics, SK Hynix and Hyundai Motor jumped around 4 percent each.
On the macro economic front, producer prices in South Korea eased 0.4 percent in May from the previous month, the Bank of Korea said - accelerating from the 0.3 percent decline in April. On an annual basis, producer prices fell 2.6 percent after losing 2.8 percent in the previous month.
New Zealand shares rose, with mixed regional cues capping gains. The benchmark NZX-50 closed up 14 points or 0.3 percent at 4,462, with 23 of its components advancing. Cloud-computing software firm Xero rallied 3.3 percent to a record high, while retirement village operators Summerset Group, Metlifecare and Ryman Healthcare rose 1-3 percent. Cavalier dropped 2.4 percent after the carpet maker warned of job cuts and said its annual earnings will be at the bottom end of the $6 million to $10 million forecast for the year ending June.
Elsewhere, benchmark indexes in India, Malaysia and Taiwan were posting gains, while Indonesia's Jakarta Composite index was up 1.7 percent and Singapore' Straits Times was gaining 1.4 percent.
U.S. stocks ended well off their day's highs overnight, as lingering worries about the Federal Reserve's future policy tempered investor optimism over upbeat data on regional manufacturing activity and confidence among homebuilders. The Dow rose 0.7 percent, while the tech-heavy Nasdaq and the S&P 500 added about 0.8 percent each.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.