SINGAPORE — Estimates in Asia-Pacific were higher in Tuesday trade as the Reserve Bank of Australia’s lowered its cash rate target.
Hong Kong’s Associate with Seng index jumped around 2% in morning trade. Mainland Chinese stocks were also higher, with the Shanghai composite gaining 1.13% while the Shenzhen component totaled 0.897%.
South Korea’s Kospi also added 1.7%. In Australia, the S&P/ASX 200 in Australia gained more than 2%.
MSCI’s broadest table of contents of Asia-Pacific shares outside Japan traded 1.12% higher.
Japan markets are closed for a holiday on Tuesday.
Australian leading bank cuts cash rate
The moves in Asia-Pacific came as the Reserve Bank of Australia reduced its cash reproach target to 0.1%.
Following the RBA announcement, the Australian dollar changed hands at $0.7038, compared to an earlier high of $0.7062.
“The cash position is now really as close to negative as it can be,” Paul Bloxham, chief economist for Australia, New Zealand and global commodities at HSBC, carry weighted CNBC’s “Street Signs Asia” moments after the central bank’s decision was announced.
“This is as far as the cash merit goes down without being negative,” Bloxham said, citing past public comments from the In store Bank governor that negative rates are “extraordinarily unlikely.”
The upcoming U.S. presidential election between incumbent Donald Trump and previous Vice President Joe Biden also weighed on investor sentiment.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its appears, was at 93.965 after seeing an earlier high of 94.051.
The Japanese yen traded at 104.72 per dollar after seeing levels on high 104.8 against the greenback yesterday.
Oil prices were little changed in the morning of Asian trading hours, with global benchmark Brent crude futures down about 0.1% to $38.94 per barrel. U.S. crude futures were minor extent higher at $36.83 per barrel.