Investing.com – Asian equities were mostly higher in afternoon trade on Wednesday, as U.S. stocks rose a second day after more index heavyweights reported better-than-expected earnings. However, Mainland Chinese markets underperformed its peers even as its central bank boosted liquidity for local banks.
Chinese stocks opened higher after a surprise move by the People’s Bank of China to cut the reserve requirement ratio for local banks, but the Shanghai Composite and the Shenzhen Component gave up their gains later in the day and were down 0.1% and 0.8% respectively by 1:20AM ET (05:20 GMT).
Meanwhile, data on Wednesday showed average new home prices in China’s major 70 cities rose 0.4% in March from the previous month, up from 0.2% growth in February.
"Today's data shows there is still significant upwards price pressure," Yan Yujin, an analyst with Shanghai-based E-house China R&D Institute said. "It is possible some cities will release more tightening measures."
Hong Kong’s Hang Seng Index climbed 0.7% in afternoon trade. Hong Kong-listed smartphone maker ZTE Corp (HK:0763)p's remained in focus as the U.S. Commerce Department banned American firms from selling parts and software to ZTE for seven years, potentially cutting ZTE’s sales.
Meanwhile, Japan's Nikkei 225 jumped 1.4% after data on Wednesday showed the country’s trade balance remained in surplus in March and amounted to 797.3 billion yen versus the estimated 498.3 billion yen. Exports rose 2.1% from a year earlier, while imports fell 0.6%.
U.S. President Donald Trump is meeting his Japanese counterpart Shinzo Abe on Tuesday and Wednesday. The two discussed trade and the summit with North Korea, among other things. Japan seeks to be exempted from U.S. recent steel and aluminium tariffs but Trump is unlikely to agree, according to reports, as he said Japan “has hit us hard on trade for years”.
Elsewhere, South Korea’s KOSPI traded 0.9% higher, while Australia’s S&P/ASX 200 edged up 0.4% as a decline in the financial stocks was offset by gains seen in materials and energy. Rio Tinto (LON:RIO) rose as much as 1.7% on Wednesday after the company reported better-than-expected first quarter production numbers.