Asian Stock Markets are mostly positive on Tuesday as they reopened after the holiday break. The optimistic trend follows cues from mixed results on Wall Street in overnight trading, fuelled by a collection of varied economic data from major economies such as China, Australia, and Japan. Soft U.S. inflation data released on Friday also instilled hopes for a U.S Federal Reserve interest rate cut in June.
The Australian stock market, however, is slightly down on Tuesday, as it shrinks some of the gains from the last two sessions. These losses can be attributed to the mostly negative cues from Wall Street. The S&P/ASX 200 benchmark is just below the 7,900 level, where technology stocks' losses were nearly offset by mining and energy stocks' gains amid a commodity price surge. The S&P/ASX 200 Index is down 7.00 points or 0.09 percent to 7,889.90—after marking a record high of 7,910.50 and a low of 7,867.80.
Major miners Rio Tinto, BHP Group and Mineral Resources are registering gains, while Fortescue Metals is slightly down. Oil stocks are mostly up with Santos, Woodside Energy and Beach energy making gains. However, tech stocks like WiseTech Global, Zip and Afterpay owner Block are showing declines.
Meanwhile, shares in Austal are soaring 11 percent after confirming a takeover offer from South Korean shipbuilders Hanwha Ocean. But Orora is taking a hit, its shares tumbling 13 percent after trimming its FY24 earnings expectations due to weak product sales.
The Reserve Bank of Australia's Monetary Policy Board assures that the country's economic recovery is mostly on track, but they’ve kept the interest rate firmly at 4.35 percent for now. The central bank warns of economic uncertainty compounded by the slow moderation of inflation.
Moving on to Japan, the stock market is slightly up, backed by gains in most sectors led by index heavyweights and technology stocks. The Nikkei 225 Index stood at 39,853.20, up 50.11 points or 0.13 percent after having reached 40,151.05 earlier.
In the tech industry, Advantest and Tokyo Electron are advancing, with Advantest's shares rising almost 1 percent and Tokyo Electron's adding almost 3 percent. Among the big exporters, Canon and Sony share prices are slightly up, while Mitsubishi Electric is making good gains.On the contrary, Odakyu Electric Railway has suffered a loss of over 3 percent, while the Rakuten Group has seen a nearly 3 percent decline.
In financial updates, Japan's monetary base rose by 1.6 percent year-on-year in March, according to a Tuesday announcement by the Bank of Japan. This increase, equating to 666.240 trillion yen, fell far short of the predicted rise of 2.5 percent and was a decrease from February’s upwardly revised 2.4 percent (initially 2.1 percent). The seasonally adjusted monetary base saw a 3.6 percent increase.
As for the foreign exchange market, the American dollar traded in the upper 151 yen-range on Tuesday.
In other parts of Asia, Hong Kong and Taiwan each reported increases of 2.4 and 1.0 percent, respectively. Similarly, Singapore, South Korea, and Malaysia rose by between 0.2 and 0.3 percent each. Conversely, New Zealand, China, and Indonesia saw decreases between 0.1 and 0.3 percent.
Wall Street shares were mostly lower on Monday, following an early upward move that could not be sustained. The Dow and the S&P 500 both receded after reaching historical closing highs last Thursday, while the tech-centric Nasdaq was able to end the day on a positive note.
While the Nasdaq marginally rose by 17.37 points or 0.1 percent to 16,396.83, the Dow decreased by 240.52 points or 0.6 percent to 39,566.85, and the S&P 500 fell 10.58 points or 0.2 percent to 5,243.77.
All major European markets were shut on Monday for Easter.
Crude oil prices climbed on Monday. Concerns about potential supply drops in the wake of reports regarding an Israeli strike near the Iranian embassy in Damascus drove the rise. Consequently, the West Texas Intermediate Crude oil futures for May increased by $0.54 or 0.65 percent to end at $83.71 per barrel.
