CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, as traders cheer signs of de-escalating tensions between the U.S. and Iran amid reports Iran is prepared to negotiate with the U.S. over its nuclear program. US President Donald Trump also announced that he has reached a trade deal with India. Asian markets closed mostly lower on Monday.
A report also showed manufacturing activity in the U.S. unexpectedly expanded for the first time in 12 months in January.
Meanwhile, traders seemed somewhat reluctant to make more significant moves ahead of the release of the closely watched monthly US jobs report on Friday.
The Australian stock market is trading significantly higher on Tuesday, snapping a four-session losing streak, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving well above the 8,850 level, with gains across most sectors led by mining and technology stocks. Energy stocks were the only weak spot.
The benchmark S&P/ASX 200 Index is gaining 92.60 points or 1.06 percent to 8,871.20, after touching a high of 8,896.60 earlier. The broader All Ordinaries Index is up 94.10 points or 1.04 percent to 9,162.90. Australian stocks closed significantly lower on Monday.
Among the major miners, BHP Group is gaining almost 2 percent, Mineral Resources is edging up 0.5 percent, Rio Tinto is adding almost 3 percent and Fortescue is up almost 1 percent.
Oil stocks are mostly lower. Origin Energy is edging down 0.4 percent, while Santos and Woodside Energy are losing almost 1 percent each. Beach energy is gaining almost 1 percent.
Among tech stocks, Afterpay owner Block is advancing almost 2 percent, Zip is gaining 1.5 percent, Xero is up more than 2 percent, WiseTech Global is adding almost 1 percent and Appen is surging more than 11 percent after the recent release of upbeat December quarter results driven by the expansion of generative AI-related projects.
Gold miners are higher. Evolution Mining is advancing more than 5 percent, Northern Star resources is adding more than 3 percent, Resolute Mining is rising more than 4 percent,Genesis Minerals is gaining almost 4 percent and Newmont is surging almost 6 percent.
Among the big four banks, Commonwealth Bank and National Australia Bank are gaining almost 1 percent each, while Westpac is adding more than 1 percent and ANZ Banking is edging up 0.3 percent.
In economic news, the total number of building permits issued in Australia was down a seasonally adjusted 14.9 percent on month in December, the Australian Bureau of Statistics said on Tuesday - coming in at 15,542. That missed expectations for a decline of 6.4 percent following the 15.2 percent jump in November. On a yearly basis, permits climbed 13.3 percent, easing from 20.2 percent in the previous month.
The Reserve Bank of Australia will also wrap up its monetary policy meeting on Tuesday and then announce its decision on interest rates. The RBA is expected to hike its benchmark lending rate by 25 basis points, to 2.85 percent from 3.60 percent.
In the currency market, the Aussie dollar is trading at $0.697 on Tuesday.
The Japanese stock market is trading sharply higher on Tuesday, reversing the losses in the previous two sessions, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is surging nearly 3 percent to above the 54,200 level, with gains across most sectors led by financial and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 54,201.01, up 1,545.83 points or 2.94 percent, after touching a high of 54,365.11 earlier. Japanese shares ended sharply lower on Monday.
Market heavyweight SoftBank Group is gaining almost 3 percent and Uniqlo operator Fast Retailing is adding more than 2 percent. Among automakers, Honda is edging up 0.2 percent and Toyota is gaining 1.5 percent.
In the tech space, Tokyo Electron is gaining 2.5 percent, Screen Holdings is advancing more than 4 percent and Advantest is adding more than 3 percent.
In the banking sector, Sumitomo Mitsui Financial is advancing almost 4 percent, Mitsubishi UFJ Financial is gaining more than 3 percent and Mizuho Financial is surging more than 5 percent.
The major exporters are mostly higher. Panasonic is gaining almost 4 percent, Mitsubishi Electric is advancing 2.5 percent, Sony is adding almost 3 percent and Canon is edging up 0.5 percent.
Among the other major gainers, TDK is jumping almost 12 percent and Kyocera is surging almost 8 percent, while Taiyo Yuden, Murata Manufacturing and Furukawa Electric are advancing almost 7 percent each. Komatsu and Takashimaya are advancing more than 6 percent each. Fujikura, Ibiden, Hoya, Shimizu, Resona Holdings and Fuji Electric is gaining almost 6 percent each, while Mitsui Kinzoku is adding more than 5 percent.
Conversely, Yamaha Motor is tumbling more than 10 percent, Yamato Holdings is sliding almost 6 percent, Sumitomo Pharma is declining more than 4 percent and NH Foods is losing more than 3 percent.
In economic news, the monetary base in Japan was down 9.5 percent on year in January, the Bank of Japan said on Tuesday - coming in at 589.403 trillion yen. That beat expectations for a decline of 10.2 percent following the upwardly revised 9.7 percent drop in December (originally -9.8 percent).
Banknotes in circulation dropped 2.8 percent on year, while coins in circulation fell 1.3 percent. Current account balances tumbled 11.1 percent, including a 9.7 percent drop in reserve balances. The adjusted monetary base fell 9.0 percent on year to 598.209 trillion yen.
In the currency market, the U.S. dollar is trading in the lower 155-yen range on Tuesday.
Elsewhere in Asia, South Korea is surging 4.7 percent, while China, Hong Kong, Singapore, Malaysia and Taiwan are higher by between 0.2 and 1.2 percent each. New Zealand and Indonesia are down 0.2 percent each.
On Wall Street, stocks moved mostly higher during trading on Monday following the mixed performance seen last week. The major averages all moved to the upside on the day, with the Dow posting a standout gain.
The major averages pulled back off their best levels late in the day but remained in positive territory. The Dow jumped 515.19 points or 1.1 percent to 49,407.66, the Nasdaq climbed 130.29 points or 0.6 percent to 23,592.11 and the S&P 500 rose 37.41 points or 0.5 percent to 6,976.44.
The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index shot up by 1.2 percent, the German DAX Index jumped by 1.0 percent and the French CAC 40 Index advanced by 0.7 percent.
Crude oil prices tumbled on Monday as signs of de-escalation of the U.S.-Iran conflict reduced supply-output concerns in the Middle East, taking off the geopolitical risk premium. West Texas Intermediate crude for March delivery was down $3.28 or 5.03 percent at $61.93 per barrel.
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