Asian Markets Track Wall Street Higher

(RTTNews) - Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, amid optimism the weak monthly US jobs data will lead the US Fed to lower interest rates next month. Traders also picked up stocks at a bargain following the recent downturn in the markets. Asian markets closed mixed on Monday.

According to CME Group's FedWatch Tool, the chances of a quarter point interest rate cut in September have jumped to 91.9 percent from 63.1 percent a week ago.

Meanwhile, as the reciprocal tariffs are set to take effect only from August 7, the global economy is yet to feel the heat of its impact but have re-ignited global trade war tensions and concerns of an economic slowdown in the near term.

The Australian stock market is trading significantly higher on Tuesday, extending the gains in the previous session, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,750 level, with gains across all sectors led by mining, energy and technology stocks.

The benchmark S&P/ASX 200 Index is gaining 88.60 points or 1.02 percent to 8,752.30, after touching a high of 8,764.20 earlier. The broader All Ordinaries Index is up 90.70 points or 1.12 percent to 9,012.70. Australian stocks closed slightly higher on Monday.

Among the major miners, Rio Tinto and BHP Group are gaining almost 1 percent each, while Mineral Resources is advancing almost 5 percent and Fortescue is edging up 0.5 percent.

Oil stocks are mostly higher. Origin Energy is gaining almost 2 percent, Woodside Energy is adding more than 1 percent and Beach energy is advancing almost 3 percent, while Santos is edging down 0.1 percent.

Among tech stocks, Afterpay owner Block is advancing more than 3 percent, Zip is surging more than 6 percent and WiseTech Global is adding almost 2 percent, while Xero is gaining more than 1 percent. Appen is flat.

Gold miners are mostly higher. Gold Road Resources is adding almost 1 percent, Newmont is advancing more than 4 percent, Evolution Mining is up almost 1 percent and Northern Star resources is gaining more than 2 percent, while Resolute Mining is losing more than 2 percent.

Among the big four banks, National Australia Bank and ANZ Banking are gaining more than 1 percent each, while Commonwealth Bank is gaining almost 1 percent and Westpac is edging up 0.5 percent.

In other news, shares in Credit Corp are soaring more than 20 percent on upbeat full-year results, driven by a sharp recovery in US debt collections and strong earnings growth in its consumer lending business.

Shares in Austal are jumping almost 6 percent after it finalised its agreement with the federal government to become the country's sovereign defence shipbuilder.

Shares in Reckon are soaring more than 14 percent after the tech firm upbeat half-yearly results, driven by the acquisition of Cashflow Manager. The company also declared a fully franked dividend.

Shares in Electro Optic Systems are skyrocketing more than 33 percent after the defence and space company announced a major A$125 million contract win from a European NATO Member State. It secured its first export order for a drone defence capability based on a new type of high-power laser.

Meanwhile, shares in Telix Pharmaceuticals are plunging more than 12 percent after it flagged higher operating expenses in the first half of the fiscal year.

In economic news, the services sector in Australia continued to expand in July, and at a faster pace, the latest survey from S&P Global revealed on Tuesday with a services PMI score of 54.1. That's up from 53.8 in June and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

In the currency market, the Aussie dollar is trading at $0.646 on Tuesday.

The Japanese stock market is trading notably higher on Tuesday, reversing the losses in the previous two sessions, following the broadly positive cues from Wall Street overnight, with the Nikkei 225 moving well above the 40,500 level, with small gains across most sectors led by exporters, automakers and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 40,544.99, up 254.29 points or 0.63 percent, after touching a high of 40,600.36 earlier. Japanese shares ended sharply lower on Monday.

Market heavyweight SoftBank Group is losing almost 3 percent and Uniqlo operator Fast Retailing is edging up 0.3 percent. Among automakers, Honda is edging up 0.5 percent and Toyota is also edging up 0.2 percent.

In the tech space, Screen Holdings is gaining almost 2 percent, while Advantest is edging down 0.4 percent and Tokyo Electron is down almost 1 percent.

In the banking sector, Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial are edging up 0.2 to 0.4 percent each.

The major exporters are mostly higher. Mitsubishi Electric is adding more than 1 percent, while Panasonic and Sony are gaining almost 1 percent each. Canon is edging down 0.1 percent.

Among the other major gainers, NTN is skyrocketing more than 16 percent, Tokyo Electric Power is soaring more than 8 percent, Furukawa Electric is surging 5.5 percent and Fuji Electric is gaining more than 4 percent, while Kansai Electric Power and Mitsubishi Heavy Industries are adding almost 4 percent. Fujikura advancing more than 3 percent and Sumitomo Electric Industries is up almost 3 percent.

Conversely, LY is plunging more than 10 percent, while Ajinomoto and Nitori Holdings are losing almost 3 percent each.

In economic news, members of the Bank of Japan's Monetary Policy Board felt that the country's economic recovery is continuing at an acceptable pace, minutes from the central bank's June 16-17 monetary policy meeting revealed on Tuesday - although it is starting to show signs of slowing.

At the meeting, the Bank of Japan decided to maintain its benchmark interest rate at 0.5 percent and to reduce the pace of the amount of bond purchases from April next year amid rising uncertainties in financial markets and global trade policies.

The amount will be cut by around JPY 400 billion each calendar year until January-March 2026, and by about JPY 200 billion each calendar quarter from April-June 2026.

In the currency market, the U.S. dollar is trading in the lower 147 yen-range on Tuesday.

Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore, South Korea, Malaysia, Taiwan and Indonesia are all higher by between 0.1 and 1.1 percent each.

On Wall Street, stocks moved sharply higher early in the session on Monday and continued to turn in a strong performance throughout the day. With the upward move, the major averages offset a large chunk of the notable pullback seen over the two previous sessions.

The major averages saw further upside going into the close, ending the day just off their highs of the session. The Nasdaq surged 403.45 points or 2.0 percent to 21,053.58, the S&P 500 shot up 91.93 points or 1.5 percent to 6,329.94 and the Dow jumped 585.06 points or 1.3 percent to 44,173.64.

The major European markets all also moved to the upside on the day. While the German DAX Index shot up by 1.4 percent, the French CAC 40 Index jumped by 1.1 percent and the U.K.'s FTSE 100 Index increased by 0.7 percent.

Crude oil prices continued to decline on Monday thanks to oversupply concerns and fears of a tariff-induced slowdown by the global economy. West Texas Intermediate crude for September delivery was down $1.06 or 1.57 percent at $66.27 per barrel.