CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, after US President Donald Trump announced that the US and Iran have reached a preliminary peace agreement to end the Middle East war, a move that could lead to the reopening of the Strait of Hormuz. Asian markets closed mostly higher on Monday.
Traders also remain cautious ahead of the release of monetary policy decisions, including interest rates, from Australia and Japan later in the day, and from the US Fed on Wednesday.
The interim peace accord between the US and Iran is set to be signed in Switzerland on Friday, though a memorandum of understanding has not yet been released. Today marks the day number 109 of the U.S.-Iran war which began on February 28.
The Strait of Hormuz is also set to reopen later this week and remain toll-free during a 60-day ceasefire period, easing concerns over global energy supplies and shipping disruptions.
The Australian stock market is notably lower on Tuesday, reversing some of the gains in the previous two sessions, despite the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 index is falling below the 8,850 level, with weakness in financial stocks and a mixed performance across most other sectors as traders remain cautious ahead of the rate decision later in the day.
The benchmark S&P/ASX 200 Index is losing 67.10 points or 0.75 percent to 8,846.90, after hitting a low of 8,834.00 earlier. The broader All Ordinaries Index is down 65.30 points or 0.72 percent to 9,062.70. Australian stocks closed sharply higher on Monday.
Among the major miners, BHP Group, Rio Tinto, Fortescue and Mineral Resources are all edging down 0.3 to 0.5 percent each.
Oil stocks are mixed. Beach energy is losing almost 2 percent and Origin Energy is edging down 0.2 percent, while Woodside Energy is adding more than 1 percent and Santos is edging up 0.4 percent.
Among tech stocks, Afterpay owner Block and Zip are gaining more than 2 percent each, while Appen is edging up 0.5 percent. WiseTech Global is losing more than 2 percent and Xero is down more than 1 percent.
Gold miners are mixed. Northern Star Resources is gaining almost 1 percent and Newmont is adding more than 1 percent. Evolution Mining is edging down 0.5 percent, while Resolute Mining and Genesis Minerals are declining almost 2 percent each.
Among the big four banks, Commonwealth Bank is declining almost 2 percent and ANZ Banking is losing almost 1 percent, while National Australia Bank and Westpac are slipping more than 1 percent each.
In economic news, the Reserve Bank of Australia will wrap up its monetary policy meeting on Tuesday and then announce its decision on interest rates. The RBA is expected to keep its benchmark lending rate steady at 4.35 percent.
In the currency market, the Aussie dollar is trading at $0.707 on Tuesday.
The Japanese stock market is trading slightly lower on Tuesday after opening well in the green, reversing some of the gains in the previous two sessions, despite the broadly positive cues from Wall Street overnight, with the Nikkei 225 falling well below the 69,250 level, with a mixed performance across most sectors as traders remain cautious ahead of the rate decision later in the day.
The benchmark Nikkei 225 Index closed the morning session at 69,234.42, down 83.08 points or 0.12 percent, after touching a high of 69,620.64 and a low of 69,095.67 earlier. Japanese shares ended sharply higher on Monday.
Market heavyweight SoftBank Group is losing 1.5 percent and Uniqlo operator Fast Retailing is edging down 0.3 percent. Among automakers, Honda is losing almost 2 percent and Toyota is also declining almost 2 percent.
In the tech space, Advantest is gaining almost 2 percent and Screen Holdings is adding almost 1 percent, while Tokyo Electron is losing almost 2 percent.
In the banking sector, Sumitomo Mitsui Financial is losing more than 1 percent and Mitsubishi UFJ Financial is edging down 0.4 percent, while Mizuho Financial is edging up 0.2 percent.
The major exporters are mixed. Mitsubishi Electric is gaining more than 1 percent and Panasonic is adding almost 1 percent, while Canon is down almost 1 percent and Sony is losing more than 2 percent.
Among the other major losers, Ryohin Keikaku, Renesas Electronics and Disco are declining almost 4 percent each, while Tokyo Electric Power is down more than 3 percent. Trend Micro, Sumco, Sharp, Kajima, Shimizu, Obayashi, Idemitsu Kosan, Mitsui Chemicals and Kansai Electric Power are all losing almost 3 percent each.
Conversely, Sumitomo Electric Industries is jumping more than 6 percent, while Sumitomo Pharma and Fujikura are advancing almost 6 percent each. Mitsui Kinzoku is gaining more than 5 percent, while Furukawa Electric and Murata Manufacturing are adding almost 5 percent each. Kawasaki Heavy Industries is up more than 4 percent and Kanadevia is rising almost 4 percent, while IHI and Ibiden are gaining more than 3 percent each. Minebea Mitsumi, Mitsubishi Heavy Industries and Kioxia Holdings are adding almost 3 percent each.
In economic news, the Bank of Japan will also conclude its monetary policy meeting and announce its decision on rates; the BoJ is expected to hike its benchmark lending rate by 25 basis points, to 1.00 percent from 0.75 percent.
In the currency market, the U.S. dollar is trading in the lower 160 yen-range on Tuesday.
Elsewhere in Asia, South Korea is up 1.4 percent, while New Zealand, Singapore Malaysia and Taiwan are higher by between 0.1 and 0.5 percent each. Hong Kong and China are down 1.3 and 0.2 percent, respectively. Indonesia is closed for Islamic New Year.
On Wall Street, stocks continued to turn in a strong performance throughout the trading day on Monday after moving sharply higher early in the session. The major averages all showed significant moves to the upside, with the Dow reaching a new record closing high.
The major averages gave back ground going into the end of the day but still posted strong gains. The Nasdaq surged 795.10 points or 3.1 percent to 26,683.94, the S&P 500 jumped 122.83 points or 1.7 percent to 7,554.29 and the Dow advanced 468.77 points or 0.9 percent to 51,671.03.
Meanwhile, the major European markets were mixed on the day. The German DAX Index jumped by 1.1 percent and the French CAC 40 Index rose by 0.4 percent, although the U.K.'s FTSE 100 Index has bucked the uptrend and fell by 0.4 percent.
Crude oil prices plummeted Monday after the U.S. and Iran reached an agreement to end their conflict and allow the immediate resumption of trade via the Strait of Hormuz. West Texas Intermediate crude for July delivery was down $4.31 or 5.08 percent at $80.57 per barrel.
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