Stocks in Australia gathered momentum after the country's central bank unexpectedly cut its official key rate as global growth clouds domestic progress.

Australia's central bank cut its interest rate to 3.25% as the economy struggles with sluggish overseas demand and the strong Australian dollar.

The S&P 200 index rose 1% to settle at 4,433, a five month high as resource stocks spearheaded gains. Shares of BHP Billiton beefed up 1.3% while peer Rio Tinto tacked on 1.2%.

The benchmark Nikkei 225 index closed down 10 points at 8,786 in Tokyo while stock markets in Hong Kong and mainland China were closed for a holiday.

Shares in Tokyo were hurt by more profit warnings. Shipping firm Mitsui OSK lowered its first half predictions to an operating loss compared to a profit in earlier company estimate. Rivals Nippon Yusen and Daido Steel reduced forecasts earlier in the week.

Elsewhere electronics specialist Alps Electric plunged 12% after it cut its operating forecast by a whopping 45%.

Clothing firm Shimamura tumbled 4% after it posted a 3.9% decline in second-quarter earnings as higher costs ate into profit.

One of the few bright spots in Tokyo on Tuesday was Softbank which 2.8% after reports said the group will buy smaller rival eAccess. KDDI fell 2.3% in Tokyo.


CJ

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