Asian Markets Track Wall Street Higher

(RTTNews) - Taking the broadly positive cues from Wall Street overnight, the Asian stock markets are trading mostly higher, as traders took note of US Fed Vice Chair Philip Jefferson stating the central bank needs to "proceed carefully to balance the risk of tightening too much." However, the fresh geopolitical crisis in the Middle East is weighing on market sentiment. Asian markets closed mixed on Monday.

Traders also cautiously await US inflation data later in the week, which could have a significant impact on the outlook for interest rates.

Adding to the gains in the previous three sessions, the Australian stock market is sharply higher on Tuesday, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 breached the 7,000 mark, with gains across most markets led by technology stocks. Mining and energy stocks are also gaining amid a spike in commodity prices.

The benchmark S&P/ASX 200 Index is gaining 82.10 points or 1.18 percent to 7,052.30, after touching a high of 7,058.40 earlier. The broader All Ordinaries Index is up 84.70 points or 1.18 percent to 7,241.70. Australian stocks closed modestly higher on Monday.

Among the major miners, BHP Group and Rio Tinto are edging up 0.2 to 0.4 percent each, while Mineral Resources is gaining almost 2 percent and Fortescue Metals is adding almost 1 percent.

Oil stocks are mostly higher. Santos and Woodside Energy are gaining more than 1 percent each, while Beach energy is adding almost 2 percent. Origin Energy is advancing almost 5 percent after the ACCC approved the energy giant's $18.7 billion takeover by Canada's Brookfield and its US-based partner, EIG.

Among tech stocks, Afterpay owner Block and WiseTech Global are adding more than 1 percent each, while Xero is gaining more than 2 percent, Zip is advancing almost 4 percent and Appen is surging almost 5 percent. Gold miners are mostly higher. Northern Star resources is gaining 1.5 percent, Gold Road Resources is adding almost 2 percent and Evolution Mining is up almost 1 percent, while Newcrest Mining is losing more than 1 percent. Resolute Mining is flat.

Among the big four banks, Commonwealth Bank and ANZ Banking are adding more than 1 percent each, while National Australia Bank is gaining almost 1 percent and Westpac is edging up 0.3 percent.

In the currency market, the Aussie dollar is trading at $0.641 on Tuesday.

In post-holiday trading, the Japanese stock market is sharply higher on Tuesday, recouping the losses in the previous session, with the Nikkei 225 surging above the 31,700 level, following the broadly positive cues from Wall Street overnight, with gains across most sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 31,766.75, up 772.08 points or 2.50 percent, after touching a high of 31,766.77 earlier. Japanese shares ended modestly lower on Friday prior to the holiday on Monday.

Market heavyweight SoftBank Group is gaining almost 4 percent and Uniqlo operator Fast Retailing is adding more than 3 percent. Among automakers, Honda is gaining almost 3 percent and Toyota is adding almost 2 percent.

In the tech space, Advantest is gaining almost 2 percent, Screen Holdings is adding almost 3 percent and Tokyo Electron is advancing more than 3 percent.

In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are adding more than 1 percent each, while Mizuho Financial is gaining almost 2 percent.

The major exporters are mostly higher. Canon and Sony are gaining more than 2 percent each, while Panasonic is adding almost 4 percent and Mitsubishi Electric is advancing almost 3 percent.

Among the other major gainers, Inpex is skyrocketing almost 10 percent, Sojitz is soaring almost 9 percent, Itochu is surging more than 7 percent and ENEOS Holdings is advancing almost 7 percent, while Kawasaki Kisen Kaisha and Idemitsu Kosan are gaining more than 6 percent each. Mitsui O.S.K. Lines, Kawasaki Heavy Industries, JGC Holdings, Pacific Metals and Fujikura are adding almost 6 percent each, while Mitsubishi Heavy Industries is rising more than 5 percent. Mitsui & Co., Citizen Watch and Marubeni are up almost 5 percent each.

Conversely, there are no other major losers.

In economic news, Japan posted a current account surplus of 2.279 trillion yen in August, the Ministry of Finance said on Tuesday. That was shy of expectations for a surplus of 3.091 trillion yen following the 2.771 trillion yen surplus in July.

In the currency market, the U.S. dollar is trading in the higher 148 yen-range on Tuesday.

Elsewhere in Asia, Hong Kong, Singapore, South Korea and Malaysia are higher by between 0.9 and 1.2 percent each, while New Zealand and Indonesia are up 0.4 and 0.5 percent, respectively. China is bucking the trend and is down 0.5 percent. Taiwan is closed for National Day.

On Wall Street, stocks recovered and climbed higher on Monday and eventually ended the day's session on a fairly firm note after staying weak till about an hour past noon. Energy stocks gained as oil prices surged amid concerns about potential disruptions in supply due to the conflict in the Middle East.

The major averages all ended higher. The Dow settled with a gain of 197.07 points or 0.59 percent at 33,604.65, the S&P 500 ended higher by 27.16 points or 0.63 percent at 4,335.66 and the Nasdaq ended with a gain of 52.90 points or 0.39 percent at 13,484.24.

Meanwhile, the major European markets closed weak on the day. While the U.K.'s FTSE 100 Index edged down 0.03 percent, Germany's DAX dropped 0.67 percent and France's CAC 40 declined 0.55 percent.

Crude oil prices rose sharply on Monday amid concerns about disruptions to global oil supplies due to rising tensions in the Middle East. West Texas Intermediate Crude oil futures for November spiked $3.59 or 4.3 percent at $86.38 a barrel.