China shares closed in the green, as investors got jittery ahead of the outcome of a Chinese five-year economic planning meeting. Markets were wondering whether the government might decrease the country's growth target.
The Shanghai Composite Index closed up 0.14% after falling as much as 2.8% and trading up as much as 0.4% earlier Tuesday.
In Asia, Japan’s Nikkei Stock Average fell 0.90%, while Australia’s S&P/ ASX 200 was down 0.03% and Hong Kong’s Hang Seng Index was up 0.12%. South Korea’s Kospi fell 0.2%.
Analysts say there is much speculation about decreasing the GDP target for the next year to 6.5% to 7%. The talk comes after China's premier Li Keqiang said on Saturday his government will not "defend to the death" its target of 7% growth.
China’s Communist Party is gathering for its Central Committee meeting this week, where politicians are expected to release an economic blueprint for the next five years. Last week, the second largest economy reported its slowest growth in the third quarter since 2009, clouding its ability to meet a year-end target of about 7%.
Defense sector shares
China’s defense sector meanwhile logged sharp gains ending up 7.2%, according to a classification by Citic Securities Co. Shipbuilding shares were driven higher due to escalating tension in the South China Sea.
On Tuesday, a U.S. Navy destroyer sailed within 12 nautical miles of artificial islands claimed by China, directly challenging China that raises the stakes of an expanding multinational territorial dispute.
CSSC Offshore & Marine Engineering Co. was up 7.9% and China State Shipbuilding Corp. gained 2.8%.
Alibaba
Investors are now looking to the earnings report of Chinese e-commerce giant Alibaba Group Holding Ltd. , due before the U.S. market opens on Tuesday. Analysts surveyed by S&P Capital IQ expect Alibaba to earn 72 U.S. cents a share and net profit of $757 million, or 4.8 billion yuan, up 58% from the same period a year earlier. Shares of Alibaba hit a record low of $57.39 on Sept. 28, but have recovered since, closing at $76.35 on Monday in New York. The firm’s IPO price was $68 a share.
Elsewhere in Asia
On Monday, Japan Post Holdings Co. priced its initial public offering
at the top of its proposed range. The government raised about 693
billion yen ($5.71 billion) from selling 11% of its shares outstanding.
In Hong Kong, China International Capital Corp. began to take orders from institutional investors for its up to $811 million initial public offering.
The MSCI Asia Pacific Index closed Monday at its highest level since
Aug. 19 and is on track for its best month since 2009, with a
month-to-date gain of 10%.
Shares were mostly higher after further easing measures came from the Chinese authorities, as well as the prospect of easing by the European Central Bank and the Bank of Japan.
