Asian stocks turned mixed on Tuesday as mainland markets reversed their losses but lower oil prices still weighed on regional resource firms.
Traders paid attention to Chinese industrial profits data for hints on the chances of further monetary stimulus following Beijing's interest rate cut on Friday. Profits slipped 0.1 percent on year in September, from an 8.8 percent tumble in the previous month, but despite the monthly improvement, economists were pessimistic.
"Persistent slowdown in sales revenue and profits could feed into financial distress in heavily-indebted manufacturing firms, which we fear potentially cascading into the banking system," ING said in a morning note. "Averting such a hard-landing scenario depends on sustaining strong manufacturing growth and banking system liquidity. The policy easing already implemented and the scope for further easing make a soft landing the baseline scenario."
Overnight, major U.S. averages finished mixed, with the blue-chip Dow Jones Industrial Average and S&P 500 down 0.1 and 0.2 percent respectively, while the Nasdaq Composite finished a tad above the flat-line.