Asian Markets Track Global Markets Higher

(RTTNews) - Asian stock markets are mostly higher on Tuesday, following the broadly positive cues from global markets overnight, amid ongoing optimism about the outlook for the markets despite recent uncertainty about the likelihood of near-term interest rate cuts. The drop in bond yields also helped push stock prices higher. Asian markets closed mostly lower on Monday.

Traders also look ahead to reports on US consumer and producer price inflation, which are due to be released later this week and could have a significant impact on the outlook for interest rates.

Snapping a four-session losing streak, the Australian stock market is significantly higher on Tuesday, following the broadly positive cues from global markets overnight. The benchmark S&P/ASX 200 is moving above the 7,500 level, with gains across most sectors led by technology and financial stocks.

The benchmark S&P/ASX 200 Index is gaining 78.90 points or 1.06 percent to 7,530.40, after touching a high of 7,541.90 earlier. The broader All Ordinaries Index is up 82.00 points or 1.07 percent to 7, 758.80. Australian stocks closed notably lower on Monday.

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

Oil stocks are mixed. Woodside Energy and Santos are edging down 0.4 to 0.5 percent each, while Origin Energy is edging up 0.1 percent and Beach energy is gaining almost 1 percent.

Among tech stocks, WiseTech Global, Appen and Xero are gaining more than 2 percent each, while Afterpay owner Block is adding almost 4 percent and Zip is advancing almost 5 percent.

Gold miners are mostly higher. Gold Road Resources and Resolute Mining are edging up 0.4 to 0.5 percent each, while Evolution Mining and Newmont are gaining almost 1 percent each. Northern Star resources is adding more than 1 percent.

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

In economic news, the value of retail sales in Australia was up a seasonally adjusted 2.0 percent on month to A$36,511.8 million. That beat forecasts for a gain on 1.2 percent following the downwardly revised 0.4 percent drop in October (originally -0.2 percent). On a yearly basis, sales rose 2.2 percent.

Meanwhile, the total number of building permits issued in Australia was up a seasonally adjusted 1.6 percent on month in November, the Australian Bureau of Statistics said on Tuesday - coming in at 14,529. That beat expectations for a decline of 2.0 percent following the downwardly revised 7.2 percent spike in October (originally 7.5 percent). On a yearly basis, approvals for private sector homes fell 6.2 percent, for dwellings excluding homes rose 0.8 percent and overall shed 4.6 percent.

In the currency market, the Aussie dollar is trading at $0.673 on Tuesday.

Extending the gains the previous session, the Japanese stock market is sharply higher in post-holiday trading on Tuesday, with the Nikkei 225 moving well above the 33,800 level, following the broadly positive cues from global markets overnight, with gains in index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 33,858.63, up 481.21 points or 1.44 percent, after touching a 33-year high of 33,990.28 earlier. Japanese shares ended modestly higher on Friday ahead of the holiday on Monday.

Market heavyweight SoftBank Group is gaining almost 2 percent and Uniqlo operator Fast Retailing is edging up 0.1 percent. Among automakers, Honda is edging up 0.4 percent, while Toyota is edging down 0.2 percent.

In the tech space, Advantest is soaring more than 8 percent, Tokyo Electron is adding more than 4 percent and Screen Holdings is advancing almost 4 percent.

In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are losing almost 1 percent each, while Mitsubishi UFJ Financial edging up 0.1 percent.

The major exporters are mixed. Panasonic is losing almost 1 percent and Canon is edging down 0.2 percent, while Mitsubishi Electric is adding almost 1 percent and Sony is advancing almost 2 percent.

Among the other major gainers, Omron and DeNA are surging almost 7 percent each, while Rakuten Group is gaining more than 5 percent. Hitachi is adding almost 4 percent, while Keyence, NEXON, Nintendo, SMC, Terumo, CyberAgent, Chugai Pharmaceutical and Konami Group are all advancing more than 3 percent each.

Conversely, there are no other major gainers.

In economic news, the average of household spending in Japan was down 2.9 percent on year in November, the Ministry of Internal Affairs and Communications said on Tuesday - coming in at 286,922 yen. That missed forecasts for a decline of 2.3 percent following the 2.5 percent drop in October. On a monthly basis, household spending fell 1.0 percent - again shy of expectations for an increase of 0.2 percent after easing 0.1 percent in the previous month. The average of monthly income per household stood at 494,181 yen, down 4.7 percent on year.

In the currency market, the U.S. dollar is trading in the higher 143 yen-range on Tuesday.

Elsewhere in Asia, New Zealand, China, Hong Kong, Singapore, South Korea and Malaysia are higher by between 0.2 and 0.9 percent each, while Indonesia and Taiwan are down 0.2 percent each.

On Wall Street, stocks ended on a buoyant note on Monday, with the Nasdaq outperforming the other major averages thanks to hectic buying in the technology sector. A drop in bond yields, and optimism about the outlook for stocks, despite recent uncertainty about the likelihood of near-term interest rate cuts, helped push stock prices up.

The major averages all ended with strong gains. The Dow ended up 216.90 points or 0.58 percent at 37,683.01, the S&P 500 climbed 66.30 points or 1.41 percent to 4,763.54, and the Nasdaq settled with a gain of 319.70 points or 2.2 percent at 14,843.77.

The major European markets also moved to the upside on the day. The U.K.'s FTSE 100 edged up 0.06 percent, and Germany's DAX climbed 0.74 percent, while France's CAC 40 advanced 0.4 percent.

Crude oil fell sharply on Monday as Saudi Arabia's decision to cut prices offset concerns about an escalation in the Middle East conflict. West Texas Intermediate Crude futures for February ended down $3.04 or 4.4 percent at $70.77 a barrel.