Asian Shares Mixed In Cautious Trade

(RTTNews) - Asian markets turned in a mixed performance on Tuesday as weak U.S. data rekindled growth worries and the Reserve Bank of Australia kept the door open to further tightening after unexpectedly raising its key interest rate.

Gold inched higher as the dollar pulled back and U.S. bond yields declined on hopes for a pause in Fed hikes at both June and July policy meetings. The U.S. government is due to release an update on inflation next week ahead of the FOMC meeting.

Oil prices fell nearly 2 percent in Asian trade on concerns that a long-drawn recession in advanced economies brought on by interest-rate hikes may weigh on global demand.

Chinese shares tumbled amid heightened Sino-U.S. tensions and concerns that the country's economic recovery is sputtering.

The benchmark Shanghai Composite index fell 1.15 percent to 3,195.34 while Hong Kong's Hang Seng index settled marginally lower at 19,099.28.

Japanese shares ended higher despite mixed readings on wages and household spending. The Nikkei average jumped 0.90 percent to 32,506.78, reaching its highest level since July 1990.

The broader Topix index ended 0.74 percent higher at 2,236.28, with trading house Mitsui & Co and Uniqlo operator Fast Retailing leading the gains ahead of the June 9 setting of special quotation prices used to set values on index options and futures.

South Korean markets were closed for a holiday. Australian markets lost ground and the Aussie dollar jumped after the central bank lifted its benchmark interest rate for a 12th consecutive time, saying inflation is still too high.

The benchmark S&P/ASX 200 fell 1.20 percent to 7,129.60 while the All-Ordinaries index ended 1.10 percent lower at 7,319.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally higher at 11,882.10.

U.S. stocks ended a choppy session lower overnight after data showed growth slowed in the country's services sector in May and new orders for manufactured goods rose by slightly less than expected in April.

The Dow fell 0.6 percent, the S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite finished marginally lower.