Investing.com - Asian stock markets were mostly higher on Tuesday, amid growing expectations central banks around the world will introduce fresh stimulus measures to boost global growth.
During late Asian trade, Australia’s ASX/200 Index dipped 0.15%, Japan’s Nikkei 225 Index advanced 0.7%, while Hong Kong's Hang Seng Index returned from a long weekend to rally 1.2%.
Market sentiment was weighed by concerns over faltering global growth in the previous session, following a number of gloomy manufacturing reports out of the U.S., the euro zone and China.
The U.S. Institute for Supply Management said Monday that its index of purchasing managers fell by 3.8 point to 49.7 in June from a reading of 53.5 in May, the first contraction since July 2009.
The dismal number renewed speculation over a third round of quantitative easing from the Federal Reserve.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, the lowest level since June 2009.
Investors were beginning to focus on Thursday’s European Central Bank policy meeting, amid growing expectations for a rate cut.
The gloomy data came after a government report showed that Chinese manufacturing activity grew at its slowest pace in seven months in June, as new export orders tumbled to lows hit in March 2009.
Market players are hoping for further easing measures from Beijing to boost growth in the world’s second largest economy.
In Tokyo, the Nikkei rose on the back of strong gains in lenders after Daiwa Securities upgraded its view on the sector.
Mitsubishi UFJ Financial Group climbed 3.15%, Sumitomo Mitsui Financial Group rose 1.65%, while Mizuho Financial Group added 1.5%.
Further supporting the index were growing expectations for further easing by the Bank of Japan. Market participants are hoping that the central bank could increase its asset purchases later this month.
Meanwhile, shares in Hong Kong rallied on the back of strong gains in lenders and property developers after remaining closed on Monday to commemorate the hand-over of the territory to China in 1997.
But shares in Australia bucked the regional trend, dipping into negative territory after the Reserve Bank of Australia held its benchmark interest rate steady at 3.50% in July.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “Financial markets have initially responded positively to signs of further progress towards longer-term sustainability in European financial affairs, but Europe will remain a potential source of adverse shocks for some time.”
Looking ahead, the outlook for European stock markets was mostly flat, as uncertainty over new measures to tackle the euro zone’s debt crisis were likely to weigh.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures declined 0.1%, London’s FTSE 100 futures were flat, while Germany's DAX futures pointed to a flat open as well.
Later in the day, the U.S. was to publish official data on factory orders.
During late Asian trade, Australia’s ASX/200 Index dipped 0.15%, Japan’s Nikkei 225 Index advanced 0.7%, while Hong Kong's Hang Seng Index returned from a long weekend to rally 1.2%.
Market sentiment was weighed by concerns over faltering global growth in the previous session, following a number of gloomy manufacturing reports out of the U.S., the euro zone and China.
The U.S. Institute for Supply Management said Monday that its index of purchasing managers fell by 3.8 point to 49.7 in June from a reading of 53.5 in May, the first contraction since July 2009.
The dismal number renewed speculation over a third round of quantitative easing from the Federal Reserve.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, the lowest level since June 2009.
Investors were beginning to focus on Thursday’s European Central Bank policy meeting, amid growing expectations for a rate cut.
The gloomy data came after a government report showed that Chinese manufacturing activity grew at its slowest pace in seven months in June, as new export orders tumbled to lows hit in March 2009.
Market players are hoping for further easing measures from Beijing to boost growth in the world’s second largest economy.
In Tokyo, the Nikkei rose on the back of strong gains in lenders after Daiwa Securities upgraded its view on the sector.
Mitsubishi UFJ Financial Group climbed 3.15%, Sumitomo Mitsui Financial Group rose 1.65%, while Mizuho Financial Group added 1.5%.
Further supporting the index were growing expectations for further easing by the Bank of Japan. Market participants are hoping that the central bank could increase its asset purchases later this month.
Meanwhile, shares in Hong Kong rallied on the back of strong gains in lenders and property developers after remaining closed on Monday to commemorate the hand-over of the territory to China in 1997.
But shares in Australia bucked the regional trend, dipping into negative territory after the Reserve Bank of Australia held its benchmark interest rate steady at 3.50% in July.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “Financial markets have initially responded positively to signs of further progress towards longer-term sustainability in European financial affairs, but Europe will remain a potential source of adverse shocks for some time.”
Looking ahead, the outlook for European stock markets was mostly flat, as uncertainty over new measures to tackle the euro zone’s debt crisis were likely to weigh.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures declined 0.1%, London’s FTSE 100 futures were flat, while Germany's DAX futures pointed to a flat open as well.
Later in the day, the U.S. was to publish official data on factory orders.