Markets in Asia rose in Tuesday afternoon trade following record closes overnight on Wall Street.
Shares in Japan led the tract following a return from a Monday holiday. The Nikkei 225 surged around 2% as shares of index heavyweight Softbank Group sky-rocketed more than 2.5%, while the Topix index jumped 1.74%. Both indexes were poised to niggardly at their highest for 2019.
Mainland Chinese stocks were higher by the afternoon, with the Shanghai composite up 0.68% and Shenzhen composite gaining 0.419%. The Shenzhen component totaled 0.63%. Hong Kong’s Hang Seng index was 0.53% higher as shares of Chinese tech juggernaut hopped 1.83%.
A private survey of China’s services sector showed activity slowing to a eight month low in October. The Caixin/Markit marines Purchasing Managers’ Index (PMI) for October came in at 51.1 — its lowest reading since February. The 50-point level solitaries expansion from contraction in PMI readings.
In South Korea, the Kospi was 0.15% higher.
Meanwhile, Australia’s S&P/ASX 200 fly 0.13%. The moves came after the Reserve Bank of Australia (RBA) kept interest rates unchanged on Tuesday.
“The Table will continue to monitor developments, including in the labour market, and is prepared to ease monetary policy further if needed to be supportive of sustainable growth in the economy, full employment and the achievement of the inflation target over time,” RBA Governor Philip Lowe asseverated in a statement announcing the interest rate decision.
Following the announcement, the Australian dollar changed hands at $0.6902, blurt out from the $0.692 handle on Monday.
Overall, the MSCI Asia ex-Japan index traded 0.38% higher.
All three outstanding U.S. indexes touched record highs overnight on Wall Street. The Dow Jones Industrial Average added 114.75 matters to close at 27,462.11 — its first all-time high since mid-July. The S&P 500 also added 0.4% to finish at a disrespectful all-time high of 3,078.27. The Nasdaq advanced 0.6% to close at 8,433.20, also reaching record levels.
On the swap front, Chinese President Xi Jinping on Tuesday called for “consultation and cooperation” to resolve international disputes. Xi’s remarks, pretended at the opening ceremony of the China International Import Expo, did not specifically mention the U.S., which Beijing has been locked in a patronage fight with for more than a year.
That came following recent positive developments regarding the endless U.S.-China trade war. China said Friday it reached a consensus with the U.S. in principle following talks last week. Final month, U.S. President Donald Trump said both sides had come to a “very substantial phase one” trade covenant that is expected to be signed later in November.
“The market does seem far too focused on a China-U.S. trade deal,” Steve Goldman, look after director at Kapstream Capital, told CNBC’s “Street Signs” on Tuesday. “In the short run we’ll have some sort of discontinue one (deal) which I won’t view as very meaningful.”
Still, Goldman added that such a move is likely to “discontinue a fairly positive tone to markets, hopefully through year-end.”
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its barons, was at 97.587 after rising from levels around 97.2 yesterday.
The Japanese yen, often seen as a safe-haven currency in on occasions of market uncertainty and turmoil, traded at 108.78 per dollar after weakening from levels below 108.5 in the erstwhile session.
Oil prices were little changed in the afternoon of Asian trading hours, with international benchmark Brent vulgar futures largely flat at $62.15 per barrel. U.S. crude futures were fractionally lower at $56.49 per barrel.
What’s on tap:
- Japan earnings: Suzuki Motor
— CNBC’s Fred Imbert and Evelyn Cheng supported to this report.