CANBERA (dpa-AFX) - Asian stock markets are mostly higher on Tuesday following the overnight gains on Wall Street amid continued optimism for a trade deal between the U.S. and China. Expectations for another interest rate cut by the U.S. Federal Reserve, which is scheduled to announce its monetary policy decision on Wednesday, also boosted investor sentiment.
The Office of the U.S. Trade Representative said Monday that Washington will consider whether to extend certain tariff suspensions on $34 billion worth of imports from China that are set to expire on December 28 this year.
The Australian market is modestly higher following the positive cues from Wall Street. Tech and mining stocks are among the major gainers.
The benchmark S&P/ASX 200 Index is adding 12.70 points or 0.19 percent to 6,753.40, after rising to a high of 6,761.50 earlier. The broader All Ordinaries Index is up 13.30 points or 0.19 percent to 6,855.80. Australian stocks ended flat on Monday.
In the tech space, Bravura Solutions is gaining almost 7 percent, Xero is rising almost 3 percent and Altium is advancing more than 1 percent.
Among the major miners, BHP Billiton and Rio Tinto are advancing more than 1 percent each, while Fortescue Metals is adding almost 1 percent.
However, gold miner Newcrest Mining is losing 0.6 percent and Evolution Mining is lower by 0.2 percent after gold prices declined overnight.
In the banking space, ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac are lower in a range of 0.1 percent to 0.6 percent.
Oil stocks are also weak after crude oil prices snapped a four-day winning streak and closed lower overnight. Oil Search is declining 0.7 percent, Santos is down 0.5 percent and Woodside Petroleum is lower by 0.4 percent.
Bega Cheese has projected a more than 17 percent decrease in fiscal 2020 earnings due to lower demand for its unbranded products and higher milk prices. The dairy and grocery producer's shares are losing almost 12 percent.
In the currency market, the Australian dollar is higher against the U.S. dollar on Tuesday. The local currency was quoted at $0.6838, up from $0.6815 on Monday.
The Japanese market is extending gains from the previous sessions, while the safe-haven yen weakened following the positive cues from Wall Street.
The benchmark Nikkei 225 Index is adding 112.72 points or 0.49 percent to 22,979.99, after rising to a high of 23,008.43 in early trades. Japanese stocks touched a one-year high on Monday.
Among auto stocks, Honda Motor is rising more than 1 percent and Toyota Motor is adding 0.7 percent.
The major exporters are mostly higher on a weaker safe-haven yen. Sony and Panasonic are rising more than 1 percent each, while Mitsubishi Electric is adding almost 1 percent. Canon is declining 1 percent after the company on Monday lowered its fiscal 2019 earnings outlook for the third time.
Market heavyweight SoftBank Group is adding more than 1 percent, while Fast Retailing is down 0.1 percent. In the tech space, Tokyo Electron is edging down 0.1 percent and Advantest is losing almost 2 percent.
In the oil sector, Inpex is advancing almost 1 percent and Japan Petroleum is higher by 1 percent even as crude oil prices declined overnight.
Among the major gainers, Nitto Denko is gaining almost 7 percent and Shin-Etsu Chemical is rising more than 3 percent. Mazda Motor, Kobe Steel and T&D Holdings are all higher by almost 3 percent each.
On the flip side, M3 is losing almost 4 percent and Eisai Co. is lower by almost 3 percent.
In economic news, the Ministry of Internal Affairs and Communications said overall consumer prices in the Tokyo region of Japan were up 0.4 percent on year in October. That was unchanged from the September reading, although it was well shy of forecasts for an increase of 0.7 percent.
Core consumer prices, which exclude volatile food prices, rose an annual 0.5 percent. That also was unchanged and shy of expectations for an increase of 0.7 percent. In the currency market, the U.S. dollar is trading in the upper 108 yen-range on Tuesday.
Elsewhere in Asia, Singapore is rising more than 1 percent, while South Korea, New Zealand, Malaysia, Hong Kong and Taiwan are also higher. Shanghai is modestly lower and Indonesia is flat.
On Wall Street, stocks closed higher on Monday amid continued optimism about U.S.-China trade talks as well as news that the European Union has granted the U.K.'s request for a Brexit deadline extension. The move by the EU, which delays Brexit until January 31, was widely expected but still removes the risk of a damaging no-deal split on Thursday.
While the S&P 500 climbed 16.87 points or 0.6 percent to 3,039.42, the Nasdaq jumped 82.87 points or 1 percent to 8,325.99 and the Dow rose 132.66 points or 0.5 percent to 27,090.72.
The major European markets also moved to the upside on Monday. While the German DAX Index climbed 0.4 percent, the French CAC 40 Index and the U.K.s FTSE 100 Index edged up by 0.2 percent and 0.1 percent, respectively.
Crude oil prices retreated on Monday, snapping a four-day winning streak, as worries about energy demand outlook due to weak Chinese industrial data outweighed positive news on U.S.-China trade front. WTI crude for December ended down $0.85, or about 1.5 percent, at $55.81 a barrel.
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