Asian Markets Track Wall Street Higher

(RTTNews) - Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from Wall Street overnight, after signs of easing in the Middle East conflict surfaced, with U.S. President Donald Trump announcing a five-day pause on strikes over Iran. Soaring oil prices have already triggered inflationary pressures and prompted global central banks to hold interest rates steady. Asian markets closed mostly lower on Monday.

Trump remarked that U.S.-Iran negotiations to end the war were going on constructively. However, Iran's state-run media said the country's foreign ministry has denied negotiating with the U.S.

Trump had warned of attacks on Iran's power plants and energy infrastructure if they do not open the Strait of Hormuz. Iran warned it would strike energy and water infrastructure across the Gulf in retaliation if Trump followed through with his threat.

The Australian stock market is trading modestly higher on Tuesday, snapping a three-session losing streak, following the broadly positive cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving up to near the 8,400 level, with gains in mining and technology stocks partially offset by weakness in energy and financial stocks.

The benchmark S&P/ASX 200 Index is gaining 33.00 points or 0.39 percent to 8,398.90, after touching a high of 8,504.60 earlier. The broader All Ordinaries Index is up 33.70 points or 0.39 percent to 8,586.30. Australian stocks closed notably lower on Monday.

Among the major miners, BHP Group and Fortescue are advancing almost 4 percent each, while Mineral Resources is jumping almost 6 percent and Rio Tinto is gaining more than 3 percent. Oil stocks are mostly lower. Origin Energy is gaining almost 2 percent, while Woodside Energy is declining almost 2 percent, Santos is slipping more than 1 percent and Beach energy is down almost 1 percent.

Among tech stocks, Afterpay owner Block is advancing more than 3 percent, while Zip and Appen are gaining almost 2 percent each. WiseTech Global and Xero are losing almost 1 percent each.

Gold miners are mostly higher. Evolution Mining and Northern Star resources are advancing almost 3 percent each, while Genesis Minerals is jumping more than 6 percent, Newmont is surging more than 5 percent and Resolute Mining is gaining almost 2 percent.

Among the big four banks, Commonwealth Bank is down almost 1 percent, Westpac is edging down 0.1 percent, ANZ Banking is gaining more than 1 percent and National Australia Bank is losing more than 1 percent.

In economic news, the manufacturing sector in Australia continued to barely expand in March, the latest survey from S&P Global revealed on Tuesday with a manufacturing PMI score of 50.1. That's unchanged from the February reading and it remains just barely above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI posted a score of 46.6, down from 52.8 in February and the composite PMI fell to 47.0 from 52.4 a month earlier.

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 some of the sharp losses in the previous two sessions, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving above the 51,900 level, with gains across most sectors led by exporters and financial stocks.

The benchmark Nikkei 225 Index closed the morning session at 51,910.42, up 394.93 points or 0.77 percent, after touching a high of 52,701.99 earlier. Japanese shares ended sharply lower on Monday.

Market heavyweight SoftBank Group is gaining almost 1 percent, while Uniqlo operator Fast Retailing is losing almost 1 percent. Among automakers, Honda is edging up 0.2 percent and Toyota is gaining almost 1 percent.

In the tech space, Tokyo Electron is adding almost 1 percent, Advantest is edging up 0.1 percent and Screen Holdings is gaining more than 2 percent.

In the banking sector, Sumitomo Mitsui Financial is adding more than 1 percent, Mizuho Financial is advancing more than 3 percent and Mitsubishi UFJ Financial is gaining more than 2 percent.

The major exporters are higher. Mitsubishi Electric and Canon are gaining almost 2 percent each, while Panasonic is advancing almost 3 percent and Sony is edging up 0.1 percent.

Among the other major gainers, Ibiden and Sumitomo Metal Mining are jumping more than 6 percent each, while Sumitomo Pharma and Fujikura are surging almost 6 percent. Mitsubishi Materials, Astellas Pharma, JTEKT, Sumitomo Electric Industries, Mitsubishi Chemical and Komatsu are advancing almost 5 percent each, while OKUMA, Idemitsu Kosan, Sumitomo Chemical, Hoya and Renesas Electronics are gaining more than 4 percent each.

Conversely, there are no other major losers.

In economic news, consumer prices in Japan were down a seasonally adjusted 0.2 percent on month in February, the Ministry of Internal Affairs and Communications said on Tuesday. That was in line with expectations and unchanged from the January reading.

On a yearly basis, consumer prices climbed 1.3 percent - beneath expectations for 1.4 percent and down from 1.5 percent in the previous month. Core CPI rose an annual 1.6 percent - beneath forecasts for 1.7 percent and down from 2.0 percent a month earlier.

In the currency market, the U.S. dollar is trading in the higher 158-yen range on Tuesday.

Elsewhere in Asia, Hong Kong and South Korea are up 1.2 and 1.4 percent, respectively. China, Singapore and Taiwan are higher by between 0.1 and 0.7 percent each, while New Zealand and Malaysia are down 1.1 and 0.5 percent, respectively. Indonesia remains closed for Eid-ul-Fitr.

On Wall Street, stocks gave back some ground over the course of the trading day on Monday after moving sharply higher early in the session, but continued to turn in a strong performance. The major averages all rebounded after ending last Friday's trading at their lowest levels in several months.

The major averages ended the day well off their highs of the session but still posted notable gains. The Dow surged 631.00 points or 1.4 percent to 46,208.47, the Nasdaq jumped 299.15 points or 1.4 percent to 21,946.76 and the S&P 500 shot up 74.52 points or 1.2 percent to 6,581.00.

The major European markets all also showed significant moves to the upside on the day. The German DAX Index jumped by 1.2 percent and the French CAC 40 Index advanced by 0.8 percent, although the U.K.'s FTSE 100 Index bucked the uptrend and dipped by 0.2 percent.

Crude oil prices plummeted on Monday after Trump's announcement that he ordered the U.S. forces to pause any planned attacks against Iran's power plants and energy infrastructure. West Texas Intermediate crude for May delivery was down $10.21 or 10.39 percent at $88.02 per barrel.