Asian stocks trade mixed, focus on the Israel-Hamas conflicts, high yields

• Asian equities have a mixed performance on Tuesday amid the Middle East geopolitical tensions and the volatile US Treasury bond yields.
• Central Huijin Investment Co plans to increase its local ETF holdings, which boosts Chinese stocks.
• Japanese PMI data showed the ongoing weakness in Asia's second-largest economy.
• Investors will monitor the US S&P Global PMI, due later on Tuesday.

Asian stocks trades mixed on Tuesday amid worries about Israel-Hamas tensions. The US Dollar (USD) drops to one-month lows whereas oil prices recover some lost ground. US Treasury bond was the center of attention in the previous session. The 10-year Treasury yield hit 5.02% for the first time since 2007, but then reversed its course, falling to 4.84%. This, in turn, lends some support to the regional stock markets.

At press time, China’s Shanghai gains 0.38% to 2,950, the Shenzhen Component Index is up 0.24% to 9,448, Hong Kong’s Hang Sang drops 0.66% to 17,059, South Korea’s Kospi is up 0.21%, and Japan’s Nikkei falls 0.24%. India’s markets are closed on Tuesday on account of the Dussehra holidays.

This week's exchange-traded funds (ETF) flows have helped China's stocks regain some ground. That being said, Central Huijin Investment Co, a Chinese sovereign fund, plans to increase its local ETF holdings, which boosts Chinese stocks.

In Japan, Jibun Bank Manufacturing PMI for October eased to 48.5 versus 48.5 prior, worse than the market expectation of 48.9. Meanwhile, the Services PMI came in at 51.1 from the previous reading of 53.8. These figures suggested ongoing weakness in Asia's second-largest economy.

Additionally, the Bank of Japan (BoJ) said on Tuesday that it would execute an unplanned bond operation on Wednesday, proposing to buy JPY300 billion yen in Japanese government bonds (JGBs) with maturities of five to 10 years, as well as JPY100 billion yen in JGBs with maturities of 10–25 years.

In Australia, the preliminary S&P Global Australian Services PMI posted 47.6 in October from 51.8 in September. On the other hand, the Manufacturing PMI eased to 48.0 from 48.7 in the previous reading. Furthermore, the Composite Index came in at 47.3 versus 51.5 prior.

Investors will take cues from the US economic data this week for fresh impetus. On Tuesday, the US S&P Global PMI will be released and might convince the Federal Reserve (Fed) about the next move in monetary policy.