Asia markets mixed as investors assess private business activity reports from Australia and Japan

Japan’s business activity expanded at a faster pace in August, powered by a “solid” service sector expansion, according to a private survey by the au Jibun bank.

The country’s flash purchasing managers index came in at 52.6, compared with 52.2 in July.

Japan’s manufacturing PMI was in contraction territory for the third straight month, recording a reading of 49.0. Meanwhile, its service sector saw a stronger expansion, with the PMI for the sector climbing to 54.3 from 53.8.

A reading above 50 indicates expansion, while a reading below 50 indicates contraction in the sector.

— Lim Hui Jie

Shares of these two companies are likely to stay on their “secular” growth trajectory despite an increase in interest rates or a slowdown in global growth, according to several fund managers.

One of the companies said it expects a compounded annual growth rate of up to 19% over the next three years. The stock jumped nearly 15% in response and is up almost 75% this year, beating the broader tech sector.

CNBC Pro subscribers can read more about the two stocks and an alternative ETF play here.

— Ganesh Rao

Australia’s business activity in August contracted at its fastest pace in 19 months, according to private surveys by the Juno Bank.

The country’s August flash composite purchasing managers index came in at 47.1, down from 48.2 in July.

Australia’s manufacturing PMI stood at 49.4, while its services sector PMI was at 46.7. The service sector PMI was also at a 19-month low.

A PMI reading of above 50 indicates expansion in the sector, while a reading below 50 indicates contraction.

— Lim Hui Jie

Recent data seems to suggest that Americans have so far been willing to spend, especially as inflation continues to fall.

But some companies say customers appear to be cutting back.

The implications could be significant, given that consumer spending accounts for about two-thirds of the U.S. economy.

On Friday, Jason Ware, chief investment officer at Albion Financial Group, and Brian Stutland, portfolio manager at Equity Armor Investments, presented their bull and bear cases, respectively, on CNBC’s “Street Signs Asia.”

They also named stocks to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Real estate and utilities outperformed the S&P 500 on Tuesday, inching up 0.4% compared to the broad market index’s 0.3% decline. Digital Realty Trust and Iron Mountain led the real estate sector’s gains, both up more than 2%. 

Financials was the most-declining sector, trading 0.8% lower Tuesday, with banks pulling down the group after S&P Global’s downgrade of several regional lenders. Regions Financial lost 5.1% and Zions Bancorp shed, while KeyCorp and Comerica dropped 4%. Charles Schwab dropped 4.8% on news that the firm is looking to raise debt in the bond market.

Energy and consumer staples were also lagging the market. Target’s stock price shaved off 3% and Estee Lauder dropped 1.8%. Other retailers trading in the red Tuesday include food product distributor Sysco, Dollar General and spice maker McCormick & Company. 

— Pia Singh

Investors should be bearish on oil, according to Ed Morse, Citi Research’s head of global commodities.

A range of countries have been able to grow their oil production, he said. Meanwhile, he said demand likely won’t keep up.

“The supply side is probably more important than the demand side at the moment,” he said on CNBC’s “Power Lunch.” “We can’t underestimate what’s happening on supply.”

— Alex Harring

Business surveys from two Federal Reserve district showed activity remained sluggish in August.

The Richmond Fed’s Business manufacturing survey turned in a reading of -7 for the month. That was up slightly from the -9 in July and the Dow Jones estimate for -10. However, the gauge represents the difference between companies seeing expansion against contraction, so it still shows weakness.

Separately, the Chicago Fed’s Survey of Economic Conditions turned in a reading of -23, which was better than July’s -31. The reading is not a straight diffusion index like Richmond’s, but the level suggests “that economic growth was below trend,” the central bank said in an accompanying narrative.

—Jeff Cox

Home sales declined at a faster pace than expected in July as prices pushed higher, the National Association of Realtors reported Tuesday.

Existing sales dropped 2.2% from June, against the Dow Jones estimate for a 0.2% decline. Sales totaled 4.07 million, against the estimate for 4.15 million, and were off 16.6% from a year ago.

The median sales price increased 1.9% to $406,700, while unsold existing homes rose 3.7% from June to the equivalent of 3.3 months of supply.

—Jeff Cox