CANBERA (dpa-AFX) - Asian stock markets are rising on Tuesday following the overnight gains on Wall Street as worries about U.S.-China trade tensions have eased for now. U.S. President Donald Trump said that top Chinese officials had called asking for the resumption of trade talks. Nevertheless, investors are cautious as China has denied that any phone call between U.S. and Chinese officials occurred.
The Australian market is modestly higher following the overnight gains on Wall Street. Investors also digested mixed local corporate earnings results.
The benchmark S&P/ASX 200 Index is adding 8.70 points or 0.14 percent to 6,448.80, after touching a low of 6,454.30 earlier. The broader All Ordinaries Index is advancing 12.40 points or 0.19 percent to 6,543.40. Australian stocks tumbled on Monday, dragged down by banks and mining companies.
Among the major miners, Fortescue Metals is higher by more than 3 percent, Rio Tinto is rising 0.5 percent and BHP Billiton is adding 0.3 percent.
The big four banks are mostly higher with modest gains. ANZ Banking, Commonwealth Bank and National Australia Bank are higher in a range of 0.2 percent to 0.3 percent, while Westpac is down 0.1 percent.
Among oil stocks, Santos is declining almost 1 percent and Woodside Petroleum is down 0.3 percent, while Oil Search is adding 0.3 percent after crude oil prices extended losses to a fourth session overnight.
Gold miners are notably lower after gold prices edged down overnight. Evolution Mining is lower by more than 3 percent and Newcrest Mining is losing almost 2 percent.
Caltex Australia reported a 54 percent fall in first-half profit on weak refining margins. The petrol station and convenience store owner's shares are lower by 0.6 percent.
Wesfarmers said its full-year profit more than quadrupled from last year aided by post-tax gains on the demerger of Coles and other divestments that offset a 36 percent fall in revenues. However, the conglomerate's shares are declining more than 2 percent.
Reliance Worldwide reported a profit for the full year that more than doubled from last year on strong revenue growth. Shares of the plumbing supplies manufacturer are gaining almost 3 percent.
In the currency market, the Australian dollar is higher against the U.S. dollar on Tuesday. The local currency was quoted at $0.6776, down from $0.6750 on Monday.
The Japanese market is advancing and the safe-haven yen weakened following the overnight gains on Wall Street.
The benchmark Nikkei 225 Index is rising 224.80 points or 1.11 percent to 20,485.85, after touching a high of 20,513.55 earlier. Japanese shares hit three-week lows on Monday.
The major exporters are higher on a weaker yen. Canon is rising more than 1 percent, while Mitsubishi Electric and Panasonic are advancing almost 1 percent each and Sony is adding 0.6 percent.
In the auto sector, Honda Motor is higher by more than 1 percent and Toyota Motor is advancing almost 1 percent. In the tech space, Advantest is up 0.2 percent and Tokyo Electron is adding more than 1 percent.
Market heavyweight SoftBank is gaining more than 2 percent and Fast Retailing is rising almost 2 percent.
Among oil stocks, Inpex is up 1 percent, while Japan Petroleum is declining more than 1 percent after crude oil prices edged lower overnight.
Among the major gainers, Subaru Corp. is gaining more than 6 percent and Taiyo Yuden is rising almost 4 percent. Suzuki Motor, Yaskawa Electric and Showa Denko are higher by more than 3 percent each.
On the flip side, Sumitomo Metal Mining and Recruit Holdings are losing more than 1 percent each.
In economic news, the Bank of Japan said that producer prices in Japan were up 0.1 percent on month in July, in line with expectations following the 0.1 percent decline in June.
On a yearly basis, producer prices gained 0.5 percent - shy of expectations for an increase of 0.6 percent and down from 0.7 percent in the previous month.
In the currency market, the U.S. dollar is trading in the upper 105 yen-range on Tuesday.
Elsewhere in Asia, Shanghai is rising almost 2 percent, while South Korea and New Zealand are advancing almost 1 percent each. Singapore, Indonesia, Hong Kong and Taiwan are also higher, while Malaysia is edging lower.
On Wall Street, stocks showed a strong move to the upside after President Donald Trump continued to express optimism about a potential U.S.-China trade deal despite the ever-escalating trade war. Trump told reporters at the G-7 summit in France that top Chinese officials had called asking for the resumption of trade talks. However, Chinese Foreign Ministry spokesman Geng Shuang said he was not aware of any call between U.S. and Chinese officials and Trump refused to provide details.
The Dow jumped 269.93 points or 1.1 percent to 25,898.83, the Nasdaq soared 101.97 points or 1.3 percent to 7,853.74 and the S&P 500 surged up 31.27 points or 1.1 percent to 2,878.38.
The major European markets also moved to the upside on Monday, with the U.K. markets closed for a holiday. The German DAX Index and the French CAC 40 Index climbed by 0.4 percent and 0.5 percent, respectively.
Crude oil futures failed to hold early gains and settled lower on Monday, extending losses to a fourth consecutive session. WTI crude oil futures for October ended down $0.53, or about 1 percent, at $53.64 a barrel.
Copyright RTT News/dpa-AFX