Investing.com - Asian stock markets were mostly higher on Tuesday, as investors assessed the potential for an agreement to raise the U.S. debt ceiling and avert default before the October 17 deadline.
During late Asian trade, Australia’s ASX/200 Index ended 0.98% higher, while Hong Kong's Hang Seng Index and Japan’s Nikkei 225 Index reopened after three-day weekend to trade up 0.4% and 0.25% respectively.
Asian markets found support from overnight gains on Wall Street as investors were encouraged by signs of progress by U.S. lawmakers to end the standoff in Washington ahead of Thursday’s deadline.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached. If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
In Tokyo, the Nikkei inched higher as the yen traded near a two-week low against the U.S. dollar, boosting sentiment.
USD/JPY traded at 98.42, not far from the previous session’s two-week high of 98.69. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Fuji Heavy Industries saw shares gain 0.75% after the Nikkei newspaper reported the automaker posted a 250% annual increase in operating profit for the six-months to September.
Meanwhile, in Hong Kong, the Hang Seng edged higher in cautious trade as investors looked ahead to a raft of Chinese economic data later in the week, including reports on gross domestic product, industrial production and retail sales.
Trade data over the weekend showed that exports unexpectedly slowed in September, sparking renewed concerns over the outlook for global demand.
Chinese exports fell 0.3% from a year earlier, defying expectations for a 6% increase and following a 7.2% gain in August.
Separately, data on Monday showed that consumer price inflation in China rose 3.1% in September, above expectations for a 2.9% increase and accelerating from 2.6% in August.
The China banking sector contributed to gains following central-bank data showing financial institutions issued CNY787 billion in new loans last month, above expectations for loans of CNY674.5 billion.
China Construction Bank shares rose 0.5%, Industrial and Commercial Bank of China added 0.4%, while Agricultural Bank of China climbed 1.1%.
Elsewhere, in Australia, the ASX/200 Index rallied to a two-week high as miners posted solid gains.
Rio Tinto saw shares gain 2.5% after announcing third-quarter global iron ore shipments rose 4%. Fortescue Metals Group rallied 5.85% on the news, while BHP Billiton added 1%.
Looking ahead, European stock market futures pointed to a higher open, as hopes for a deal to reopen the U.S. government and raise the government borrowing limit ahead of a deadline to avoid a default supported sentiment.
The EURO STOXX 50 futures pointed to a gain of 0.5% at the open, France’s CAC 40 futures added 0.4%, London’s FTSE 100 futures indicated a rise of 0.6%, while Germany's DAX futures pointed to an increase of 0.5% at the open.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release a report on manufacturing activity in the Empire state.
During late Asian trade, Australia’s ASX/200 Index ended 0.98% higher, while Hong Kong's Hang Seng Index and Japan’s Nikkei 225 Index reopened after three-day weekend to trade up 0.4% and 0.25% respectively.
Asian markets found support from overnight gains on Wall Street as investors were encouraged by signs of progress by U.S. lawmakers to end the standoff in Washington ahead of Thursday’s deadline.
Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal, fuelling hopes that a compromise can be reached. If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
In Tokyo, the Nikkei inched higher as the yen traded near a two-week low against the U.S. dollar, boosting sentiment.
USD/JPY traded at 98.42, not far from the previous session’s two-week high of 98.69. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.
Fuji Heavy Industries saw shares gain 0.75% after the Nikkei newspaper reported the automaker posted a 250% annual increase in operating profit for the six-months to September.
Meanwhile, in Hong Kong, the Hang Seng edged higher in cautious trade as investors looked ahead to a raft of Chinese economic data later in the week, including reports on gross domestic product, industrial production and retail sales.
Trade data over the weekend showed that exports unexpectedly slowed in September, sparking renewed concerns over the outlook for global demand.
Chinese exports fell 0.3% from a year earlier, defying expectations for a 6% increase and following a 7.2% gain in August.
Separately, data on Monday showed that consumer price inflation in China rose 3.1% in September, above expectations for a 2.9% increase and accelerating from 2.6% in August.
The China banking sector contributed to gains following central-bank data showing financial institutions issued CNY787 billion in new loans last month, above expectations for loans of CNY674.5 billion.
China Construction Bank shares rose 0.5%, Industrial and Commercial Bank of China added 0.4%, while Agricultural Bank of China climbed 1.1%.
Elsewhere, in Australia, the ASX/200 Index rallied to a two-week high as miners posted solid gains.
Rio Tinto saw shares gain 2.5% after announcing third-quarter global iron ore shipments rose 4%. Fortescue Metals Group rallied 5.85% on the news, while BHP Billiton added 1%.
Looking ahead, European stock market futures pointed to a higher open, as hopes for a deal to reopen the U.S. government and raise the government borrowing limit ahead of a deadline to avoid a default supported sentiment.
The EURO STOXX 50 futures pointed to a gain of 0.5% at the open, France’s CAC 40 futures added 0.4%, London’s FTSE 100 futures indicated a rise of 0.6%, while Germany's DAX futures pointed to an increase of 0.5% at the open.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release a report on manufacturing activity in the Empire state.