Ignoring some prophets of doom that were predicting a correction in Chinese equities, investors continued to buy stocks, pushing Shanghai’s key index higher on Tuesday. Japan, though, failed to match the 13-day winning streak that the Nikkei recorded 17 years ago, as it ended slightly lower. Lenovo’s majority shareholder Legend, meanwhile, is ignoring the gloomy forecasts as it plans to seek regulators approval for a $2 billion IPO in Hong Kong slated for this month.
Shanghai outperforms Asian equities. The Shanghai Composite Index rose 1.7% at the close of the session as investors set aside concerns that the market is about to correct after an explosive performance, which saw the index reaching seven-year highs in previous sessions. The Nikkei fell 0.1%, ending 12 straight days of gains. The index failed to match the 13-day winning streak recorded in 1998. The rest of Asia were also down, with the MSCI index of Asia-Pacific shares outside Japan losing 0.8%. CNBC/Reuters
Japan’s wages rise faster than inflation in April. For the first time in two years, Japan posted a wage increase of 0.1%, adjusted to inflation. The data, though preliminary, spurred optimism about a possible rise in consumer spending, a key driver of the economy. Asian Nikkei Review
Legend Holdings plans to raise $2 billion from Hong Kong IPO. The Chinese firm that owns a stake in Lenovo, the world’s biggest PC maker, will seek the approval of Hong Kong regulators on Thursday. If plans go as scheduled, Legend will be listed in the former British colony by the end of this month. The Wall Street Journal (paywall)
Silver Lake Partners hopes for another goldmine in China. The private equity firm is leading a $500 million investment in Chinese travel website Qunar. It will invest $330 million in Qunar through convertible bonds. This will be Silver Lake’s second largest investment in the country after e-commerce giant Alibaba. Reuters
India cuts rates, Australia steady. The Reserve Bank of India lowered its key repo rate by 25bps to 7.25%, marking the central bank’s third rate cut this year. Meanwhile, the Reserve Bank of Australia maintained its cash rate at 2% following a 25bps cut last month. BBC/Bloomberg
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