Asian Markets Mostly Higher
Asian stock markets are mostly higher on Tuesday following the positive cues overnight from Wall Street amid optimism about a quick economic recovery from the coronavirus-induced setback.
Investor sentiment also received a boost after White House trade advisor Peter Navarro clarified that the U.S.-China trade deal remains in place. Stocks had dropped earlier after media reports quoted Navarro as telling Fox News in an interview that the U.S. trade deal with China was “over”.
The Australian market is rising. The benchmark S&P/ASX 200 Index is advancing 36.70 points or 0.62 percent to 5,981.20, after touching a high of 5,999.20 earlier. The broader All Ordinaries Index is adding 41.10 points or 0.68 percent to 6,099.10. Australian stocks closed flat for a second straight day on Monday.
Among the major miners, BHP, Rio Tinto and Fortescue Metals are all advancing more than 1 percent each.
In the oil sector, Oil Search is advancing almost 1 percent, while Santos and Woodside Petroleum are adding 0.6 percent each after crude oil prices gained almost 2 percent overnight.
Gold miners are mixed even as gold prices rose overnight. Evolution Mining is lower by almost 1 percent, while Newcrest Mining is adding 0.2 percent.
The big four banks – Westpac, National Australia Bank, Commonwealth Bank and ANZ Banking – are lower in a range of 0.3 percent to 0.6 percent.
Woolworths Group said it expects full-year earnings to be slightly lower than last year and noted that trading so far in the June quarter continued to be strong. Shares of the retail giant are down 0.4 percent.
In the currency market, the Australian dollar is higher against the U.S. dollar on Tuesday. The local unit was quoted at $0.6927, compared to $0.6858 on Monday.
The Japanese market has recovered after sliding into negative territory earlier following news that the U.S.-China trade deal was over.
The benchmark Nikkei 225 Index is adding 184.57 points or 0.82 percent to 22,621.84, after touching a low of 22,257.14 earlier. Japanese shares closed slightly lower on Monday.
Market heavyweight SoftBank Group is rising more than 2 percent and Fast Retailing is adding 0.5 percent.
The major exporters are higher despite a stronger yen. Panasonic is higher by almost 2 percent, Canon is advancing more than 1 percent, Mitsubishi Electric is adding 0.5 percent and Sony is up 0.3 percent.
In the tech space, Tokyo Electron is rising 2 percent and Advantest is advancing almost 2 percent. Among automakers, Toyota and Honda are adding more than 1 percent each.
Toyota said it expects its domestic production volume in July to recover from the projected June volume as economic activities in the country resume.
In the oil sector, Inpex is higher by 0.4 percent and Japan Petroleum is edging up 0.1 percent after crude oil prices rose overnight.
Drugmaker Shionogi & Co. said it will collaborate with universities in Japan on a new testing method, the SATIC method, for the novel coronavirus that may significantly boost the country’s testing capacity. However, shares of Shionogi are losing almost 2 percent.
Among the other major gainers, GS Yuasa is rising more than 6 percent, Denso Corp. is higher by almost 5 percent and Fujikura is advancing more than 4 percent.
In economic news, the latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to contract in June, and at a faster rate, with a manufacturing PMI score of 28.9. That’s down from 30.3 in May, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.
In the currency market, the U.S. dollar is trading in the upper 106 yen-range on Tuesday.
Elsewhere in Asia, South Korea, Hong Kong and Taiwan are also rising, while Shanghai, New Zealand and Indonesia are edging higher. Meanwhile, Singapore and Malaysia are lower.
On Wall Street, stocks closed higher on Monday as traders continued to express optimism the U.S. economy will quickly recover from the coronavirus-induced setback. Traders shrugged off a report from the National Association of Realtors showing a continued nosedive in existing home sales in May, as the group’s chief economist was confident sales would rebound in the coming months.
The Nasdaq jumped 110.35 points or 1.1 percent to 10,056.47, the Dow climbed 153.50 points or 0.6 percent to 26,024.96 and the S&P 500 advanced 20.12 points or 0.7 percent to 3,117.86.
Meanwhile, the major European markets closed lower on Monday. While the U.K.’s FTSE 100 Index slid by 0.8 percent, the French CAC 40 Index and the German DAX Index both fell by 0.6 percent.
Crude oil prices rose on Monday as traders continued to bet energy demand will increase despite reports showing a surge in new coronavirus infections in several U.S. states and in quite a few countries across the globe. WTI crude for July expired at $40.46 barrel, gaining $0.71 or 1.8 percent for the session.
Source: Read Full Article