South Korea is 1.9% higher, Singapore, Malaysia and Taiwan are higher by between 0.1 and 0.4% each, New Zealand and Hong Kong are down 0.3 and 0.5%, respectively, while China and Indonesia are relatively flat
Asian stock markets are trading mixed on Tuesday, following the broadly positive signals from global markets overnight, on renewed hopes over the outlook for interest rates, with traders growing confident about a rate cut in the coming months and largely eliminating short-lived concerns the US Federal Reserve might actually consider hiking rates. Asian markets ended mostly higher on Monday.
According to CME Group’s FedWatch Tool, the probability of a rate cut in September is at 83.5%.
Adding to the gains in the previous three sessions, the Australian stock market is significantly higher on Tuesday, after the broadly positive cues from global markets overnight.
The benchmark S&P/ASX 200 is moving above the 7,700 level, with gains across most sectors led by technology stocks as well as mining and energy stocks amid firmer commodity prices.
The benchmark S&P/ASX 200 Index is gaining 35.10 points or 0.46% to 7,717.50, after hitting a high of 7,741.80 earlier. The broader All Ordinaries Index is up 38.60 points or 0.49% to 7,990.90. Australian stocks closed notably higher on Monday.
In Japan, recouping the losses in the previous two sessions, the stock market is notably higher in post-holiday trading on Tuesday, with the Nikkei 225 moving well above the 38,600 level following the broadly positive hints from global markets overnight, with gains across most sectors driven by Index heavyweights and technology stocks.
The benchmark Nikkei 225 Index ended the morning session at 38,688.66, up 452.59 points or 1.18%, after reaching a high of 38,863.14 earlier. Japanese shares closed marginally down on Thursday prior to the holidays on Friday and Monday.
Market heavyweight SoftBank Group is rising nearly 3% and Uniqlo operator Fast Retailing is advancing more than 3%. Among automakers, Honda is losing nearly 1% and Toyota is declining 0.1%.
In the tech space, Advantest is gaining around 2%, Tokyo Electron is advancing around 4% and Screen Holdings is gaining more than 4%.
In the banking sector, Sumitomo Mitsui Financial is rising 0.2%, while Mitsubishi UFJ Financial and Mizuho Financial are declining 0.2 to 0.5% each.
In economic news, the services sector in Japan continued to expand in April, and at a faster pace, the latest survey from Jibun Bank revealed on Tuesday with a services PMI score of 54.3. That’s up from 54.1 in March, and it moves further above the key line of 50 that separates expansion from contraction.
In the currency market, the U.S. dollar is trading in the lower 154 yen-range on Tuesday.
Elsewhere in Asia, South Korea is 1.9% higher, while Singapore, Malaysia and Taiwan are higher by between 0.1 and 0.4% each. New Zealand and Hong Kong are down 0.3 and 0.5%, respectively. China and Indonesia are relatively flat.
