Asian markets advanced on Tuesday, tracking gains made by stateside indexes, which recorded their second straight day of gains following last week’s massive losses.
In Japan, the benchmark Nikkei 225 index rose 0.85 percent as markets resumed trade following a long weekend. Most automakers were slightly higher in the morning, although Toyota slipped 0.63 percent early on. Financials were also in positive territory in the early going.
Among other blue chips, Fanuc Manufacturing rose 1.7 percent and Fast Retailing rose 0.48 percent.
Across the Korean Strait, the Kospi advanced 0.63 percent. Tech heavyweights Samsung Electronics and SK Hynix surged 2.97 percent and 3.09 percent, respectively. Automakers were mixed: Hyundai Motor was flat while Kia Motors slipped 0.15 percent.
Manufacturing names traded mixed in the morning. Steelmaker Posco slipped 0.83 percent in the early going and Hyundai Steel edged down 0.19 percent. LG Chem lost early gains to slide 0.81 percent.
Down Under, the S&P/ASX 200 edged up 0.42 percent as earnings season rolled on. The materials sector was among the best-performers in the morning, while the heavily-weighted financials sector edged higher by 0.36 percent.
Meanwhile, National Australia Bank’s business conditions index rose in January, indicating strong business activity in the country. The index stood at +19 index points for the month, above the long-run average of +5 index points, NAB said.
Greater China markets were also buoyant early on. Hong Kong’s Hang Seng Index rose 1.48 percent in early trade as markets clawed back gains after falling into correction territory last week. Tech shares were mostly higher, with index heavyweight Tencent extending gains and climbing 2.83 percent.
Financials traded in positive territory: HSBC gained 0.5 percent and China Construction Bank advanced 2.2 percent. Hong Kong Exchanges and Clearing was up 2.02 percent after the appointment of two new board members.
On the mainland, the Shanghai composite tacked on 1.14 percent and the Shenzhen composite gained 0.84 percent.
Indian markets will be closed on Tuesday for a holiday.
U.S. markets on Monday continued their rebound from what was their worst week in two years, with major stock indexes recording gains of more than 1 percent. Last week’s sell-off, initially triggered by concerns over rising interest rates, saw the Dow and S&P 500 lose 5.2 percent on the week.
The yield on the benchmark 10-year U.S. Treasury note touched a fresh four-year high in the last session. The 10-year Treasury yield stood at 2.86 percent after rising as high as 2.9 percent earlier in the session.
Investors also digested the release of the Trump administration’s $200 billion infrastructure plan.
Honda Motor will recall around 350,000 cars in China due to an engine-related problem, Reuters reported. No accidents had been tied to the issue, Reuters said, citing Honda representatives. Honda shares were off by 0.03 percent.
Meanwhile, China’s Fosun is poised to buy a majority stake in French fashion house Lanvin, Reuters said, citing sources. Fosun shares were up 2.37 percent in the early going.
Elsewhere, shares of CapitaLand were up 1.73 percent after the developer announced Tuesday its post-tax profit for 2017 rose 30.3 percent to 1.55 billion Singapore dollars ($1.17 billion). Fourth-quarter post-tax profit declined 37.8 percent to S$267.7 million ($202.1 million).
In currencies, the greenback steadied after paring some of last week’s gains overnight as U.S. stocks rebounded. The dollar index, which tracks the U.S. currency against a basket of peers, was stable at 90.169 at 9:29 a.m. HK/SIN.
Against the yen, the dollar edged up to trade at 108.70 after slipping in the last session.
Japanese Prime Minister Shinzo Abe said Tuesday he was not yet decided on who would be the next governor of the Bank of Japan, Reuters reported. Finance minister Taro Aso said that the individual would have to be fluent in English. Media reports last week indicated current governor Haruhiko Kuroda would be re-appointed when his term ends in April, the news agency said, citing a source.
The euro was mostly stable at $1.2286, after rising in the last session.
Oil prices edged up after finishing the previous session little changed. Brent crude futures added 0.37 percent to settle at $62.82 per barrel. U.S. West Texas Intermediate tacked on 0.27 percent at trade $59.45.
Here’s the economic calendar for Tuesday (all times in HK/SIN):
- 4:00 p.m.: Taiwan fourth-quarter GDP
