TOKYO – Asian stock markets struggled to post big gains on Tuesday as oil prices fell again and weak Chinese manufacturing data deflated investors’ spirits, although stimulus moves by the Chinese central bank tempered the bad news.
The mixed picture for stocks across the region followed a choppy session on Wall Street where the major indices finished Monday in the red, as profit-taking set in following a string of gains in the last two weeks.
Worries about China boosted the Japanese yen — seen as a safe haven in times of turmoil — which weighed on the Tokyo stock market as the stronger currency threatened exporters’ profitability.
On Monday, China’s central bank cut the proportion of funds banks must set aside as reserves, in Beijing’s latest attempt to tackle slowing growth in the world’s second largest economy.
The move came after a G20 finance ministers’ meeting in Shanghai, which stressed the use of all available policy tools to boost global growth, and with Chinese and world stock markets hammered by worries over the economy.
The focus on China would now shift to the National People’s Congress, the annual meeting of its rubber-stamp parliament, beginning on Saturday, traders said.
Also hitting sentiment, oil prices fell again after a rally in US trading stoked by major crude consumer China’s moves to tackle its slowing economy and Saudi Arabia welcoming cooperative action to stabilise the market.
Top oil producer Saudi Arabia suggested openness in reaching a coordinated solution to market volatility, as a global supply glut weighs on prices.
US benchmark crude for April fell seven cents to $33.68 a barrel on Tuesday while Brent slid 19 cents to $36.38 a barrel.

Source: AFP, 1 March 2016