Asian stock markets demonstrated positive movements on Tuesday. This upswing follows a mixed performance on Wall Street the previous night, where both the S&P 500 and Nasdaq Composite reached all-time highs. Investor sentiment remains buoyed by prospects of a potential interest rate reduction by the U.S. Federal Reserve in December, spurred by recent comments from Fed Governor Christopher Waller indicating his inclination towards such a cut. On Monday, Asian markets largely ended on a positive note.
However, traders are proceeding with caution as a series of pivotal U.S. economic reports loom later this week. Among these are the crucial monthly jobs report and insights regarding consumer sentiment.
Despite regional gains, worries of an expansive trade war tempered advances following U.S. President-elect Donald Trump's suggestion of imposing a 100% tariff on BRICS nations if they explore new currency alternatives to challenge the U.S. dollar. Trump emphasized his stance on his Truth Social network, declaring, "The idea that the BRICS countries are trying to move away from the dollar while we stand by and watch is OVER."
In Australia, market indices continue their slight gains from the previous day, with significant advancements seen in trading on Tuesday amidst mixed cues from Wall Street. The benchmark S&P/ASX 200 is buoyantly trading above the 8,500 mark, reaching unprecedented heights. Gains are evident across various sectors, with iron ore miners and financial stocks taking the lead.
The S&P/ASX 200 Index achieved a rise of 58.30 points, or 0.69%, to 8,506.20, having earlier touched a record high of 8,514.50. The All Ordinaries Index similarly increased by 58.80 points, or 0.68%, to reach 8,763.80. Australian markets had closed with slight gains on Monday.
Among the major mining corporations, BHP Group and Rio Tinto are experiencing marginal increases of around 0.3 to 0.4 percent, while Fortescue Metals is climbing beyond 2 percent and Mineral Resources by over 3 percent.
In the oil sector, stock performances are varied. Origin Energy is down by nearly 1 percent, and Santos by 0.2 percent, whereas Woodside Energy is up by close to 1 percent, and Beach Energy is up nearly 2 percent.
Technology stocks are performing notably, with Block, Afterpay's owner, surging by over 5 percent. Both Appen and Xero are up by about 2 percent, while Zip is slipping by over 2 percent, and WiseTech Global falls by 1.5 percent.
For gold mining companies, the scenario is mixed. Gold Road Resources has decreased by almost 2 percent, Newmont by 0.1 percent, and Northern Star Resources by nearly 3 percent. Conversely, Resolute Mining rose by more than 1 percent and Evolution Mining increased by approximately 1 percent.
Within the major banks, Commonwealth Bank is slightly up by 0.5 percent, ANZ Banking is growing by more than 1 percent, Westpac has seen an increase of over 2 percent, and National Australia Bank is up by more than 1 percent.
In economic developments, the Australian Bureau of Statistics reported a seasonally adjusted current account deficit of A$14.149 billion for the third quarter of 2024, falling short of expectations for A$10.3 billion. This follows a downward revision of the previous quarter's deficit to A$16.351 billion from an initially announced -A$10.7 billion. Furthermore, the capital and financial account surplus amounted to A$20.084 billion, representing an increase of A$2.658 million from Q2.
The balance of goods and services in terms adjusted for seasonal variation, presented a 0.1 percentage point contribution to the GDP quarterly movement for Q3 2024, short of the anticipated 0.4 percent, and down from 0.2 percent in Q2.
Meanwhile, the Australian dollar is trading at $0.646.
In Japan, the stock market has advanced strongly on Tuesday, continuing its upward momentum from the previous session, as the Nikkei 225 surpasses the 39,200 threshold. This is supported by gains in all sectors, predominantly driven by major index players and technology stocks.
The Nikkei 225 Index gained 667.04 points, or 1.73%, to conclude the morning session at 39,180.06, after reaching an inter-day high of 39,215.85. Shares in Japan finished significantly higher on Monday.
Prominent market influencer SoftBank Group climbed by over 3 percent, and Fast Retailing, Uniqlo's operator, increased by more than 1 percent. Automotive leaders Honda and Toyota made gains, both exceeding 1 percent.
In technology, Advantest rose by nearly 3 percent, Screen Holdings surged over 7 percent, and Tokyo Electron increased by close to 4 percent.
Banking sector stocks saw modest gains with Mitsubishi UFJ Financial ticking up by 0.4 percent, Mizuho Financial was up by almost 1 percent, and Sumitomo Mitsui Financial gained more than 1 percent.
Most major exporting companies are seeing increases; Panasonic and Mitsubishi Electric rose by more than 3 percent each, Canon added over 1 percent, while Sony made a marginal gain of 0.3 percent.Disco is leading the charge among top performers with a significant increase of 6.5%, while Furukawa Electric and Kawasaki Kisen Kaisha are both showing promising gains of nearly 5%. Fujikura is up by over 4%, and Nidec, Lasertec, and Asahi Kasei are each seeing an approximate 4% rise. Additionally, Mitsubishi Electric and Nippon Yusen K.K. advanced more than 3%, with Sumitomo Heavy Industries and Nitto Denko close behind, rising nearly 3% each.
On the downside, Kansai Electric Power and Sumitomo Pharma have both fallen by more than 3%.
In the currency markets, the U.S. dollar is trading in the upper range of 149 yen as of Tuesday.
Across Asia, markets show varied movements. Stock indices in Singapore, South Korea, Indonesia, and Taiwan are climbing between 1.0% and 1.6%, while Malaysia sees a slight increase of 0.1%. Conversely, markets in New Zealand, China, and Hong Kong are experiencing declines between 0.1% and 0.6%.
In the U.S., Wall Street concluded Monday with mixed results. Technology stocks performed well despite an overall sluggish broader market, as investors anticipate key economic data releases this week, including private and non-farm payroll figures, JOLTs, and manufacturing activity reports.
The major indices saw varied results: the Dow dropped by 128.65 points, a 0.29% decrease, closing at 44,782.00. Meanwhile, the S&P 500 and Nasdaq reached record highs, closing at 6,047.15 and 19,403.95, respectively. The S&P 500 rose by 14.77 points or 0.24%, and the Nasdaq increased by 185.78 points or 0.97%.
In Europe, the major stock markets moved upward. The UK's FTSE 100 rose by 0.31%, Germany's DAX surged by 1.57%, and France's CAC 40 edged up by 0.02%.
Crude oil prices edged higher on Monday amid concerns over potential supply disruptions due to escalating geopolitical tensions. However, gains were modest, with investors focusing on Thursday's OPEC meeting. West Texas Intermediate Crude oil futures for January closed at $68.10 a barrel, marking a $0.10 or 0.15% increase.
