Asian Markets Track Wall Street Higher

Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, amid bets the US Fed will proceed with modest rate cuts in the near term after recent US inflation data that showed producer prices were unexpectedly unchanged in September, while the annual rate price growth slowed modestly. Asian markets closed mixed on Monday.

While hopes the Fed will lower rates by another 50 basis points next month have largely evaporated, the data reinforced optimism the central bank will cut rates by 25 basis points. CME Group’s FedWatch Tool is currently indicating an 86.1 percent chance the Fed will cut rates by a quarter point at its November meeting.

Adding to the gains in the previous session, the Australian stock market is trading significantly higher on Tuesday, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,300 level to fresh all-time highs, with gains across most sectors led by mining and technology stocks. Energy stocks were the only weak spot amid tumbling crude oil prices.

The benchmark S&P/ASX 200 Index is gaining 63.70 points or 0.77 percent to 8,316.50, after touching an all-time high of 8,331.70 earlier. The broader All Ordinaries Index is up 62.90 points or 0.74 percent to 8,592.40. Australian stocks closed notably higher on Monday.

Among the major miners, BHP Group is gaining almost 1 percent, while Rio Tinto and Fortescue Metals are adding more than 1 percent each. Mineral Resources is flat.

Oil stocks are mostly lower. Origin Energy is losing almost 1 percent, while Woodside Energy and Santos are declining more than 1 percent each. Beach energy is flat.

Among tech stocks, Xero and WiseTech Global are adding more than 1 percent each, while Afterpay owner Block is advancing more than 3 percent and Appen is gaining almost 1 percent. Zip is losing more than 1 percent.

Gold miners are mostly higher. Gold Road Resources and Northern Star resources are gaining almost 1 percent each, while Evolution Mining is edging up 0.4 percent, Newmont is adding more than 1 percent and Resolute Mining advancing almost 4 percent.

Among the big four banks, Commonwealth Bank, ANZ Banking, National Australia Bank and Westpac are gaining almost 1 percent each.

In the currency market, the Aussie dollar is trading at $0.673 on Tuesday.

Extending from the gains in the previous three sessions, the Japanese stock market is sharply higher in post-holiday trade on Tuesday, with the Nikkei 225 moving above the 40,200 level, following the broadly positive cues from Wall Street overnight, with gains across all the sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 40,232.45, up 626.65 points or 1.58 percent, after touching a high of 40,257.34 earlier. Japanese shares ended notably higher on Friday ahead of the holiday on Monday.

Market heavyweight SoftBank Group is gaining almost 6 percent, while Uniqlo operator Fast Retailing is edging down 0.3 percent. Among automakers, Honda is edging up 0.4 percent and Toyota is edging up 0.5 percent.

In the tech space, Advantest is gaining more than 3 percent, Screen Holdings is advancing almost 6 percent and Tokyo Electron is adding more than 4 percent.

In the banking sector, Mitsubishi UFJ Financial, Mizuho Financial and Sumitomo Mitsui Financial are gaining more than 2 percent each.

The major exporters are mostly higher. Canon is adding almost 2 percent, while Sony and Mitsubishi Electric are gaining almost 1 percent each. Panasonic is losing almost 1 percent.

Among the other major gainers, Socionext is surging almost 6 percent and Chugai Pharmaceutical is adding more than 5 percent, while Lasertec and Isetan Mitsukoshi are advancing almost 5 percent each. Tokio Marine is gaining more than 4 percent each, while Renesas Electronics and Mercari are up almost 4 percent each. Taiyo Yuden, Ebara and Recruit Holdings are rising more than 3 percent each, while Concordia Financial and Rakuten Group are up almost 3 percent each.

Conversely, Kawasaki Heavy Industries, ENEOS Holdings and Inpex are losing almost 3 percent each.

In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Tuesday.

Elsewhere in Asia, Taiwan is up 1.2 percent, while New Zealand, Singapore, Malaysia, South Korea, and Indonesia are higher by between 0.1 and 0.7 percent each. Hong Kong and China are down 1.2 and 0.8 percent, respectively.

On Wall Street, stocks saw further upside during trading on Monday following the strong upward move seen during last Friday’s session. The major averages all moved higher on the day, with the Dow and the S&P 500 reaching new record closing highs.

The major averages reached new highs for the session late in the day before giving back some ground going into the close. The Dow rose 201.36 points or 0.5 percent to 43,065.22, the Nasdaq jumped 159.75 points or 0.9 percent to 18,502.69 and the S&P 500 climbed 44.82 points or 0.8 percent to 5,859.85.

The major European markets all also moved to the upside on the day. While the German DAX Index advanced by 0.7 percent, the U.K.’s FTSE 100 Index climbed by 0.5 percent and the French CAC 40 Index rose by 0.3 percent.

Crude oil prices fell sharply on Monday, weighed down by another downward revision in demand forecast by OPEC, and concerns about demand from China. West Texas Intermediate Crude oil futures ended down $1.73 or about 2.29 percent at $73.83 a barrel.