Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from global markets overnight, as traders remain cautious while they await the release of the U.S. inflation data later in the day for more clues about the Fed’s interest rate move at the upcoming policy meeting later this month. The optimism about a slowdown in inflation triggered some buying in the market. Asian markets closed mostly higher on Monday.
The report is expected to show a continued slowdown in the annual rate of consumer price growth. However, the data is not likely to impact the expected 75 basis point interest rate hike by the Federal Reserve next week.
The Australian stock market is modestly higher on Tuesday, extending the gains in the previous three sessions, with the benchmark S&P/ASX 200 breaking above the 7,000 mark, following the broadly positive cues from global markets overnight, with strength across most sectors, led by energy stocks amid spiking crude oil prices.
Data showing a rise in Australia’s consumer sentiment for the first time since November 2021 is also aiding market sentiment.
The benchmark S&P/ASX 200 Index is gaining 38.50 points or 0.55 percent to 7,003.00, after touching a high of 7,010.00 earlier. The broader All Ordinaries Index is up 40.10 points or 0.56 percent to 7,248.30. Australian stocks closed significantly higher on Monday.
Among the major miners, Rio Tinto and Fortescue Metals are edging up 0.4 percent each, while Mineral Resources is gaining more than 2 percent and OZ Minerals is adding almost 1 percent. BHP Group is edging down 0.5 percent.
Oil stocks are higher. Origin Energy is gaining almost 1 percent and Woodside Energy is adding almost 2 percent, while Beach energy and Santos are advancing more than 2 percent each.
Among tech stocks, Appen and Zip are gaining almost 2 percent each, while Xero and WiseTech Global are adding more than 2 percent each. Afterpay owner Block is up almost 1 percent.
Gold miners are mostly higher. Evolution Mining is gaining almost 2 percent, Gold Road Resources is advancing almost 4 percent, Northern Star Resources adding almost 3 percent, Resolute Mining is rising more than 4 percent and Newcrest Mining is edging up 0.5 percent.
Among the big four banks, Commonwealth Bank, National Australia Bank, Westpac and ANZ Banking are gaining almost 1 percent each.
In other news, shares in Ramsay Health Care are plunging more than 10 percent after reports that the consortium led by KKR was no longer pursuing a takeover of the Australian hospitals operator.
In the currency market, the Aussie dollar is trading at $0.687 on Tuesday.
The Japanese stock market is modestly higher in choppy trading on Tuesday, extending the gains in the previous three sessions, with the Nikkei 225 just below the 28,600 level, following the broadly positive cues from global markets overnight, even as traders remain concerned over the outlook for interest rates and rising inflation.
Traders also digested data showing Japan’s business sentiment improving in the third quarter, while producer prices increased in August.
The benchmark Nikkei 225 Index closed the morning session at 28,589.11, up 47.00 points or 0.16 percent, after touching a high of 28,659.76 earlier. Japanese shares ended significantly higher on Monday.
Market heavyweight SoftBank Group and Uniqlo operator Fast Retailing are gaining almost 1 percent each. Among automakers, Honda is losing more than 2 percent and Toyota is down almost 1 percent.
In the tech space, Advantest and Tokyo Electron are gaining almost 1 percent each, while Screen Holdings is edging up 0.5 percent. In the banking sector, Mitsubishi UFJ Financial is flat and Sumitomo Mitsui Financial is edging down 0.1 percent, while Mizuho Financial is edging up 0.1 percent.
The major exporters are mixed, with Sony edging up 0.1 percent, while Panasonic and Canon are losing almost 1 percent each. Mitsubishi Electric is flat.
Among the other major gainers, Nintendo is surging almost 5 percent, East Japan Railway is adding more than 4 percent, Pacific Metals is advancing more than 3 percent, while Kawasaki Kisen Kaisha, TDK, Sumitomo Metal Mining, ANA Holdings, Odakyu Electric Railway and West Japan Railway are all up almost 3 percent each.
Conversely, Mitsubishi Motors is declining almost 5 percent, Subaru and Mazda Motor are losing more than 3 percent and Olympus is down almost 3 percent.
In the currency market, the U.S. dollar is trading in the mid-142 yen-range on Tuesday.
Elsewhere in Asia, South Korea is surging 2.6 percent, while China, Hong Kong, Singapore, Taiwan and Indonesia are higher by between 0.4 and 0.7 percent. New Zealand and Malaysia are down 0.2 and 0.7 percent, respectively.
On Wall Street, stocks showed a strong move to the upside during trading on Monday, extending the recovery rally seen last week. With the continued advance, the major averages closed higher for the fourth consecutive session.
The major averages finished the day firmly in positive territory. The Dow climbed 229.63 points or 0.7 percent to 32,381.34, the Nasdaq surged 154.10 points or 1.3 percent to 12,266.41 and the S&P 500 jumped 43.05 points or 1.1 percent to 4,110.41.
The major European markets also showed strong moves to the upside on the day. While the German DAX Index soared 2.4 percent, the French CAC 40 Index spiked by 2.0 percent and the U.K.’s FTSE 100 Index surged by 1.7 percent.
Crude oil prices surged higher on Monday amid rising speculation about the impact of Ukraine’s offensive around Kharkiv on supply of Russian oil. A weak dollar contributed as well to the jump in oil prices. West Texas Intermediate Crude oil futures for October ended higher by $0.99 or about 1.1 percent at $87.78 a barrel.
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