CANBERA (dpa-AFX) - Asian stock markets are mostly higher on Tuesday following the positive cues overnight from Wall Street. Optimism about the reopening of economies around the world helped offset worries about rising U.S.-China tensions and political unrest in the U.S. Reports indicated China has told state-owned firms to halt purchases of some U.S. farm goods amid tensions over Hong Kong.
The Australian market is modestly higher in choppy trade. Investors turned cautious ahead of the Reserve Bank of Australia's monetary policy decision due later in the day. The RBA is expected to keep its benchmark lending rate unchanged at the record low of 0.25 percent.
The benchmark S&P/ASX 200 Index is adding 5.10 points or 0.09 percent to 5,824.30, after touching a low of 5,800.00 earlier. The broader All Ordinaries Index is up 7.30 points or 0.12 percent to 5,945.70. Australian stocks closed notably higher on Monday.
The big four banks are mixed ahead of the RBA decision. ANZ Banking is adding almost 1 percent and National Australia Bank is rising 0.5 percent, while Commonwealth Bank is lower by 0.4 percent and Westpac is down 0.2 percent.
ANZ Banking said it has agreed to sell its asset finance unit in New Zealand, UDC Finance, to Japan's Shinsei Bank for NZ$762 million.
In the oil sector, Santos is advancing more than 1 percent and Woodside Petroleum is adding 0.3 percent, while Oil Search is declining more than 1 percent after crude oil prices edged lower overnight.
Among the major miners, Fortescue Metals is losing more than 2 percent, BHP is declining more than 1 percent and Rio Tinto is down 1 percent.
Gold miners are weak after gold prices dipped overnight. Evolution Mining is declining more than 2 percent and Newcrest Mining is lower by 1 percent.
Brickworks said its sales revenue in Australia in the four months to May fell 10 percent due to the coronavirus pandemic. However, the building products manufacturer's shares are rising 0.6 percent.
On the economic front, Australia will also see first-quarter numbers for current account today.
In the currency market, the Australian dollar is higher against the U.S. dollar on Tuesday. The local unit was quoted at $0.6799, compared to Monday's close of $0.6746.
The Japanese market is extending gains from the previous session following the positive cues overnight from Wall Street. Optimism about the phased reopening of the Japanese economy lifted stocks.
On Monday, the Tokyo Metropolitan Government entered the second phase of its three-part plan to gradually ease social distancing measures and allow businesses to reopen.
The benchmark Nikkei 225 Index is adding 192.52 points or 0.87 percent to 22,254.91, after touching a high of 22,294.52 earlier. Japanese shares hit a three-month high on Monday.
Market heavyweight SoftBank Group is rising more than 2 percent and Fast Retailing is adding almost 1 percent.
The major exporters are higher on a slightly weaker yen. Mitsubishi Electric is rising almost 3 percent, while Sony and Canon are rising almost 2 percent each and Panasonic is up almost 1 percent.
In the tech space, Advantest is declining almost 1 percent and Tokyo Electron is edging down 0.1 percent. Among automakers, Toyota is advancing almost 2 percent and Honda Motor is adding more than 1 percent.
In the oil sector, Inpex is rising almost 3 percent and Japan Petroleum is higher by more than 2 percent even as crude oil prices edged lower overnight.
Among the major gainers, IHI Corp. is gaining almost 6 percent, Mitsui E&S Holdings is rising more than 5 percent and NTN Corp. is higher by more than 4 percent.
On the flip side, Daiichi Sankyo is losing almost 4 percent and Kansai Electric Power is lower by almost 2 percent.
In the currency market, the U.S. dollar is trading in the mid 107 yen-range on Tuesday.
Elsewhere in Asia, Indonesia is rising almost 2 percent and Singapore is advancing more than 1 percent. South Korea, New Zealand, Hong Kong and Taiwan are also higher. Meanwhile, Shanghai and Malaysia are modestly lower.
On Wall Street, stocks closed higher on Monday following the release of a report from the Institute for Supply Management showing U.S. manufacturing activity contracted at a slower rate in the month of May. The report from the ISM came on the heels of a private survey showing the Chinese manufacturing sector expanded in May. Traders remain generally optimistic about economies reopening despite political unrest across the country following the death of George Floyd, which has forced a number of major retailers to temporarily close their stores in areas hit hard by protests.
The Dow climbed 91.91 points or 0.4 percent to 25,475.02, the Nasdaq advanced 62.18 points or 0.7 percent to 9,552.05 and the S&P 500 rose 11.42 points or 0.4 percent to 3,055.73.
The major European markets also moved to the upside on Monday, although several major markets were closed for public holidays. The U.K.'s FTSE 100 Index and the French CAC 40 Index surged up by 1.5 percent and 1.4 percent, respectively.
Crude oil prices turned in a relatively lackluster performance on Monday before ending the session modestly lower. WTI crude for July delivery edged down $0.05 to $35.44 a barrel.
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