Investing.com – Asian stocks rose during morning trade on Tuesday after sentiment was boosted in China by a liquidity injection into the interbank market and the continued strength of U.S. dollar against the yen.
The People''s Bank of China added more than $42 billion to the financial system and expanded a loan facility to meet Lunar New Year demand for cash.
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The Nikkei 225 rose 1.51% in morning trading, the Hang Seng index rose by 0.58% and the Shanghai Composite index rose 0.64%. Australia''s S&P ASX/200 lost 0.54% and South Korea''s Kospi rose 0.54%.
Meanwhile, a string of positive U.S. data last week indicated that while the recovery in the U.S. remains uneven, the economic outlook is continuing to improve, adding to expectations for the Federal Reserve to continue tapering its stimulus program.
Financial stocks remained broadly lower, as French lenders BNP Paribas and Societe Generale slid 0.24% and 0.57%, while Germany''s Deutsche Bank plunged 4.24% after saying it posted a surprise pre-tax loss of EUR1.153 billion for the fourth quarter.
Among peripheral lenders, Spanish banks Banco Santander and BBVA dropped 0.56% and 0.67% respectively, while Italy''s Intesa Sanpaolo and Unicredit declined 0.49% and 1.39%.
Elsewhere, Peugeot Citroen saw shares dive 5.79%, weighed by a 4.9% decline in annual unit sales and reports on its EUR3 billion capital increase.
On the upside, Anheuser-Busch InBev jumped 0.94% after agreeing to pay USD5.8 billion to buy back South Korea’s Oriental Brewery.
In London, FTSE 100 inched up 0.05%, although gains remained capped by losses in the financial sector.
Shares in Lloyds Banking shed 0.34% and HSBC Holdings retreated 0.64%, while Barclays and the Royal Bank of Scotland tumbled 1.62% and 2.49% respectively.
In the mining sector, stocks turned broadly higher. Glencore Xstrata added 0.13% and Vedanta Resources gained 2.26%, while rivals Randgold Resources and Fresnillo surged 2.29% and 4.37%.