(RTTNews) – Asian stock markets are trading mostly higher on Tuesday following mixed signals from Wall Street on Monday as traders relived amid the completion of the first round of talks to ease the Russian- ongoing, with further negotiations expected to follow. Traders also continued to buy shares at reduced levels after the recent sell-off, which some analysts called overdone. Asian markets mostly closed higher on Monday.
Meanwhile, news that Russian President Vladimir Putin has put his nuclear forces on high alert has raised concerns of an escalation. The West continues to step up sanctions against Russia in response to the invasion, raising concerns about the impact on the global economy.
G7 countries have also agreed to exclude Russian banks from SWIFT, and the Biden administration has announced that it will bar American individuals and companies from doing business with the Bank of Russia, the Russian National Wealth Fund. and the Ministry of Finance.
Australia’s stock market is up sharply on Tuesday, extending gains from the previous two sessions, with the benchmark S&P/ASX 200 index rising above the 7,100 level, following mixed signals from Wall Street on Monday amid a surge in crude oil prices and as traders continue to monitor developments in the ongoing Russian-Ukrainian crisis following the close of the first round of talks.
Traders are also awaiting the Reserve Bank of Australia’s decision on interest rates, which are expected to be kept at a record high.
The benchmark S&P/ASX 200 index gained 73.40 points or 1.04% to 7,122.50, after hitting a high of 7,156.90 earlier. The broader All Ordinaries index is up 84.20 points or 1.15% at 7,407.40. Australian shares closed notably higher on Monday.
Among major miners, BHP Group gained nearly 1% and Mineral Resources added nearly 2%, while OZ Minerals and Fortescue Metals fell 0.2% each. Rio Tinto is flat. Oil inventories are higher, with Beach Energy gaining nearly 2%, while Woodside Petroleum and Santos add more than 1% each. Origin Energy grew by 0.3%.
Among tech stocks, Appen gains nearly 5%, WiseTech Global adds nearly 4%, Xero gains more than 5%, and Block soars more than 13%, while Zip plunges nearly 8%.
Gold miners are less numerous. Evolution Mining loses almost 5%. Newcrest Mining and Resolute Mining are down nearly 2% each, while Gold Road Resources and Northern Star Resources are down more than 3% each. Of the Big Four banks, Commonwealth Bank and National Australia Bank each earn more than 2%, while ANZ Banking and Westpac each earn more than 1%. Commonwealth Bank has agreed to sell a 10% stake in China’s Hangzhou bank for about $1.8 billion, ending a nearly two-decade-old investment.
Separately, shares of Yancoal soared nearly 15% after the coal miner posted record first-half revenue and profit, driven by high coal prices.
Australia’s financial crimes regulator, AUSTRAC, has taken legal action against Crown Resorts, claiming the casino giant has repeatedly breached anti-money laundering law over the past six years. The stock is down nearly 1 percent.
In economic news, the Reserve Bank of Australia will wrap up its monetary policy meeting and then announce its interest rate decision. The RBA is expected to keep its benchmark lending rate unchanged at a record low of 0.10%.
Australia’s manufacturing sector returned to expansion territory in February, the Australian Industry Group’s latest survey showed on Tuesday with a performance index of 53.2. That’s up from 48.4 and it’s moving above the 50 expansion or recession line that separates expansion from contraction.
The value of owner-occupied home loans in Australia rose 1.0% in January, seasonally adjusted, the Australian Bureau of Statistics announced on Tuesday – to A$22.69 billion. That missed forecasts of a 2.0% increase after peaking at 5.3% in December. Overall, home loans rose 2.6% in one month to A$33.66 billion, while investment loans rose 6.1% to A$10.97 billion. Australian dollars. On an annual basis, loans for owner-occupied housing increased by 3.4%.
The ABS also said Australia had a seasonally adjusted current account surplus of A$12.677 billion in the fourth quarter of 2021. This missed expectations of a surplus of A$14.9 billion after the surplus. revised down from A$22.0 billion in the previous three months (originally A$22.9 billion). billion).
Additionally, the manufacturing sector in Australia continued to expand in February, and at a faster pace, the latest Markit Economics survey showed on Tuesday with a manufacturing PMI score of 57.0. That’s up from 55.1 in January, though it remains above the 50 boom or bust line that separates expansion from contraction.
In the currency market, the Australian dollar is trading at $0.726 on Tuesday.
Japan’s stock market is sharply higher on Tuesday, extending gains from the previous session, with the Nikkei 225 rising above the 26,900 level, following mixed signals from Wall Street on Monday, as traders relish amid the completion of the first round of talks to defuse the ongoing Russian-Ukrainian crisis, with further negotiations expected.
Meanwhile, traders remain concerned about domestic coronavirus cases, although daily new cases are off record highs. Japan plans to extend near-emergencies in 10 prefectures by about two weeks as hospital beds experience high occupancy rates. Near-emergency measures currently in place in 31 prefectures are due to expire on Sunday.
The benchmark Nikkei 225 closed the morning session at 26,916.97, up 390.15 points or 1.47%, after hitting a high of 27,013.26 earlier. Japanese stocks ended slightly higher on Monday.
The SoftBank group, heavyweight in the market, gained more than 3% and the operator Uniqlo Fast Retailing added nearly 3%. Among automakers, Honda gains nearly 1% and Toyota adds nearly 1%. In technology, Advantest gained almost 2%, Tokyo Electron added more than 2% and Screen Holdings gained 0.2%. In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial rose 0.5% each, while Mitsubishi UFJ Financial fell 0.4%.
Major exporters are higher, with Panasonic and Canon gaining more than 1% each, while Mitsubishi Electric adds more than 2% and Sony gains 0.1%.
Among other big losers, Mitsui OSK Lines soared more than 8%, while Tokyo Electric Power and NEC rose more than 6% each. Mitsubishi Heavy Industries and BANDAI NAMCO each earn more than 5%, while JGC Holdings, IHI, M3, Odakyu Electric Railway and Kawasaki Kisen Kaisha each earn nearly 5%. OKUMA and Konami Holdings are up more than 4% each, while Inpex and Fijitsu are up nearly 4% each. Conversely, there are no big losers.
In economic news, Japan’s manufacturing sector continued to expand in February, albeit at a slower pace, the latest Jibun Bank survey showed on Tuesday with a manufacturing PMI of 52.7. That’s down from 55.4 in January, though it remains above the 50 boom or bust line that separates expansion from contraction.
In the currency market, the US dollar is trading in the lower range of 115 yen on Tuesday.
Elsewhere in Asia, New Zealand, Indonesia and Taiwan are up 1.0 to 1.7% each, while China and Singapore are up 0.2 and 0.9%, respectively. Malaysia bucks the trend and is down 0.1%. Hong Kong is relatively flat. South Korea is closed for the Independence Day holiday.
On Wall Street, stocks regained some lost ground on Monday morning after a sharp drop, but weakened again and eventually ended the day’s session on a mixed note amid high volatility.
The main averages closed mixed. The Dow finished with a loss of 166.15 points or 0.49% at 33,892.60, after hovering between 33,469.31 and 33,963.62. The S&P 500, which briefly emerged into positive territory later in the morning, ended the session with a loss of 10.71 points or 0.24% at 4,373.94, while the Nasdaq settled with a gain of 56.77 points or 0.41% to 13,751.40.
Meanwhile, major European markets closed weakly. Britain’s FTSE 100 ended down 0.42%. The German DAX fell 0.73% and the French CAC 40 fell 1.39%. Crude oil futures traded sharply higher on Monday amid growing concerns over supply disruptions in Russia. As Russia accounts for about 10% of the world’s oil supply, sanctions from the West are likely to significantly damage supply. West Texas Intermediate crude oil futures for April ended up 4.13 or 4.5% at $95.72 a barrel.
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