Asian Markets Rise After Wall Street Rally
(RTTNews) - Asian stock markets are mostly higher on Tuesday following a tech-lead rally overnight on Wall Street and as upbeat manufacturing data from the U.S., Europe and China raised hopes of a global economic rebound despite the coronavirus pandemic.
The Australian market is advancing following the positive cues from Wall Street. Resources stocks are rising on higher commodity prices.
Investors now look ahead to the Reserve Bank of Australia's monetary policy decision due later today. The RBA is widely expected to keep its benchmark lending rate at a record low of 0.25 percent.
The benchmark S&P/ASX 200 Index is rising 124.40 points or 2.10 percent to 6,050.50 and the broader All Ordinaries Index is higher by 128.00 points or 2.11 percent to 6,181.90. Australian stocks closed marginally lower on Monday.
The big four banks - ANZ Banking, Westpac, National Australia Bank and Commonwealth Bank - are higher in a range of 2.4 percent to 2.7 percent.
In the oil sector, Santos is gaining more than 4 percent, while Oil Search and Woodside Petroleum are higher by almost 2 percent each after crude oil prices advanced overnight.
Among the major miners, Fortescue Metals is rising more than 3 percent, Rio Tinto is advancing more than 2 percent and BHP Group is advancing more than 1 percent after iron ore prices gained overnight.
Among gold miners, Evolution Mining is declining almost 1 percent, while Newcrest Mining is adding 0.3 percent after gold prices edged up overnight.
On the economic front, Australia will also release June figures for imports, exports, trade balance and retail sales today.
In the currency market, the Australian dollar is lower against the U.S. dollar on Tuesday. The local unit was quoted at $0.7125, down from $0.7140 on Monday.
The Japanese market is extending gains from the previous session after U.S. stocks rallied overnight. In addition, exporters' stocks were lifted by a weaker yen.
The benchmark Nikkei 225 Index is adding 334.37 points or 1.51 percent to 22,529.75, after rising to a high of 22,544.94 earlier. Japanese shares closed notably higher on Monday to snap a six-day losing streak.
Market heavyweight SoftBank Group is declining more than 1 percent, while Fast Retailing is advancing more than 1 percent.
Retail group Seven & I Holdings, owner of the 7-Eleven convenience store chain, is gaining almost 7 percent after the company announced a deal to buy Speedway gas stations in the U.S. from Marathon Petroleum for $21 billion.
In the tech space, Tokyo Electron is rising more than 2 percent, while Advantest is down 0.2 percent.
Z Holdings, the owner of Yahoo Japan, and messaging app provider Line Corp. said they have decided to postpone their merger to March 2021 due to the impact of the coronavirus pandemic. Shares of Z Holdings are advancing almost 1 percent.
The major exporters are higher on a weaker yen. Sony and Canon are gaining more almost 3 percent each, while Mitsubishi Electric and Panasonic are adding more than 1 percent each.
In the financial sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are adding more than 1 percent each. Among automakers, Honda Motor is rising almost 3 percent and Toyota is higher by more than 2 percent.
In the oil sector, Japan Petroleum is advancing more than 2 percent and Inpex is higher by more than 1 percent after crude oil prices rose overnight.
Among the other major gainers, Kikkoman Corp. is gaining more than 14 percent, Maruha Nichiro is rising more than 11 percent and Suzuki Motor is higher by more than 8 percent.
Conversely, Casio Computer is losing more than 3 percent and Tokyo Gas is lower by almost 2 percent.
In economic news, the Ministry of Internal Affairs and Communications said that overall consumer prices in the Tokyo region were up 0.6 percent on year in July. That exceeded expectations for an increase of 0.4 percent and was up from 0.3 percent in June.
Core CPI, which excludes volatile food prices, advanced an annual 0.4 percent - again exceeding expectations for 0.2 percent, which would have been unchanged.
In the currency market, the U.S. dollar is trading in the lower 106 yen-range on Tuesday.
Elsewhere in Asia, South Korea and Taiwan are rising more than 1 percent each, while Singapore, New Zealand, Indonesia, Malaysia and Hong Kong are also higher. Bucking the trend, Shanghai is modestly lower.
On Wall Street, stocks closed higher on Monday, reflecting strength in technology stocks after software giant Microsoft confirmed it is in talks to acquire Chinese-owned video-sharing app TikTok. In addition, the Institute for Supply Management released a report showing a bigger than expected acceleration in the pace of growth in U.S. manufacturing activity in the month of July.
While the Nasdaq surged up 157.52 points or 1.5 percent to 10,902.80, the Dow advanced 236.08 or 0.9 percent to 26,664.40 and the S&P 500 climbed 23.49 points or 0.7 percent to 3,294.61.
The major European markets also moved sharply higher on Monday. The German DAX Index soared by 2.7 percent, while the U.K.'s FTSE 100 Index spiked by 2.3 percent and the French CAC 40 Index jumped by 1.9 percent.
Crude oil prices rose on Monday as encouraging economic data from the U.S., the Eurozone and China helped ease concerns about energy demand. WTI crude for September delivery climbed $0.74 or about 1.8 percent to $41.01 a barrel.
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