Investing.com - Shares in Tokyo posted a second straight day of gains on Tuesday with investors looking to a rally on a stimulus package from the government, while other Asian markets were also generally up.
The Nikkei 225 rose 2.65%. The S&P/ASX 200 rose 0.90%, while the Shanghai Composite was flat.
In the wake of extending gains in Japan's upper house of parlaiment, the government promised to move ahead with a raft of major spending, including a ¥10 Trillion ($98 billion) stimulus measure aimed at jump starting the economy with a proposal to fast-track construction on a series of high-speed trains throughout the nation.
In Australia, the NAB business confidence survey for June came in at plus-6, a better reading than the previous level at plus-3, and the business survey for June reached plus-12, also better than a previous reading of plus-10.
NAB Chief Economist Alan Oster said the survey suggests the RBA should be reasonably comfortable with the present state of economic activity, even in the wake of recent events that cloud the outlook. "However, the view on inflation is arguably more important at this juncture, and the survey is not suggesting any meaningful turnaround in near-term inflation pressures. These trends justify the highly accommodative setting for monetary policy," he said.
Oster added that while the August RBA meeting following Q2 inflation data is likely to be 'live', current information suggests rates will remain on hold.
Earlier in Japan, producer prices fell 4.2% as expected.
Overnight, U.S. stocks rose sharply as the S&P 500 Composite index hit all-time intraday and closing highs on Monday, after global equities received a boost from broad indications that Japan could approve fresh stimulus measures following a resounding victory from Shinzo Abe's party in upper house elections over the weekend.
In Monday's session, the S&P 500 soared to a record intraday level of 2,143.16, eclipsing the previous high of 2,134.72 from May 20, 2015. At the close of trading, the S&P 500 fell back slightly to 2,137.16, up 7.26 or 0.34% on the session.
Nevertheless, the broader index held onto gains to post its highest closing level on record, considerably above the previous high of 2,130.82 from last May. Stocks in the Basic Materials, Consumer Services and Financial sectors led, each gaining more than 0.50% on the session. Stocks in the health care sector, along with safe-haven plays in the Utilities and Telecom industries lagged, all closing slightly lower for the day.
Meanwhile, the Dow Jones Industrial Average gained 80.19 or 0.44% to 18,226.93 and the NASDAQ Composite index added 31.88 or 0.64% to 4,988.64, amid a strong performance from large-cap tech stocks. The Dow remains less than 1% or roughly 100 points from all-time record highs, while the NASDAQ cleared the key 5,000 level for the first time since December 31.