Asian stock markets are mostly higher on Tuesday following the overnight rallies in European markets amid optimism about potential coronavirus vaccines, while the U.S. markets were closed for a public holiday.
Investors shrugged off worries about U.S.-China tensions as well as data that showed the Japanese economy shrank more than initially estimated in the second quarter.
The Australian market is extending gains from the previous session, with stocks rising across the board.
The benchmark S&P/ASX 200 Index is adding 56.80 points or 0.96 percent to 6,001.60, after rising to a high of 6,007.90 earlier. The broader All Ordinaries Index is rising 58.50 points or 0.95 percent to 6,188.40. Australian shares recovered after a weak start to close modestly higher on Monday.
Among the major miners, Fortescue Metals is rising almost 3 percent, Rio Tinto is advancing more than 1 percent and BHP Group is adding almost 1 percent as iron ore futures rose.
Gold miners are also higher. Evolution Mining is adding more than 1 percent and Newcrest Mining is up almost 1 percent.
In the banking space, Westpac and National Australia Bank are rising more than 1 percent each, while ANZ Banking and Commonwealth Bank are adding almost 1 percent each.
Among oil stocks, Santos, Woodside Petroleum and Oil Search are higher by more than 1 percent each.
In the tech sector, Appen and WiseTech Global are rising more than 1 percent each, while Afterpay is adding 0.6 percent.
The Japanese market is rising after European markets rallied overnight. Investors shrugged off data that showed Japan’s economy contracted more than initially estimated in the second quarter.
The benchmark Nikkei 225 Index is adding 99.24 points or 0.43 percent to 23,189.19, after rising to a high of 23,230.14 in early trades. Japanese stocks closed lower on Monday.
Market heavyweight SoftBank Group Corp is losing more than 2 percent after tumbling in the previous session, while Fast Retailing is advancing more than 1 percent.
The major exporters are mixed despite a weaker yen. Panasonic is advancing more than 1 percent, and Canon is adding 0.2 percent. while Mitsubishi Electric is declining 0.5 percent Sony is down 0.2 percent.
In the tech space, Tokyo Electron is declining almost 1 percent, while Advantest is rising 0.6 percent. In the financial sector, Sumitomo Mitsui Financial is lower by more than 1 percent and Mitsubishi UFJ Financial is losing 0.6 percent.
Among automakers, Honda is lower by more than 1 percent, while Toyota is adding 0.2 percent.
Citing sources familiar with the matter, Kyodo News reported that the Development Bank of Japan extended a record 130 billion yen loan to Nissan Motor in May, with a guarantee that most of the loan will be repaid by the government in case of a default by the automaker. Shares of Nissan are down 0.4 percent.
In the oil sector, Japan Petroleum is lower by almost 1 percent and Inpex and Japan Petroleum are rising more than 1 percent each.
Among the other major gainers, Asahi Group Holdings, NTN Corp. and NSK are gaining almost 4 percent each, while Recruit Holdings and Minebea Mitsumi are rising almost 3 percent each.
Conversely, M3 is losing more than 3 percent and Z Holdings is lower by almost 3 percent.
In the currency market, the U.S. dollar is trading in the lower 106 yen-range on Tuesday.
Elsewhere in Asia, South Korea, Singapore, New Zealand, Hong Kong, Indonesia and Taiwan are also higher, while Malaysia is declining and Shanghai is edging lower.
The U.S. markets were closed on Monday for the Labor Day holiday.
European markets rallied sharply on Monday amid optimism about coronavirus vaccines and reports showing a significant improvement in Eurozone investor confidence in September. The U.K.’s FTSE 100 gained 2.4 percent, Germany’s DAX surged up 2.0 percent and France’s CAC 40 ended up 1.8 percent.
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