Tuesday 4th August: Asian markets higher on the backs on Wall Street’s tech rally

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Global Markets:

  • Asian Stock Markets : Nikkei up 1.70%, Shanghai Composite up 0.11%, Hang Seng up 2.43%, ASX up 1.88%
  • Commodities : Gold at $1980.70 (+0.30%), Silver at $24.48 (+0.26%), Brent Oil at $44.01 (-0.32%), WTI Oil at $40.87 (-0.34%)
  • Rates : US 10-year yield at 0.554, UK 10-year yield at 0.104, Germany 10-year yield at -0.520

News & Data:

  • (AUD) Cash Rate 0.25% vs 0.25% expected
  • (AUD) Trade Balance 8.20B vs 8.80B expected
  • (USD) ISM Manufacturing PMI 54.2 vs 53.6 expected
  • Australian trade: Surplus remains elevated, at $8.2bn – Export earnings +3.5%, led by Iron ore and Gold
  • Spain’s scandal-hit former king Juan Carlos to go into exile

Markets Update:

Asian stock markets are mostly higher on Tuesday following a tech-lead rally overnight on Wall Street and as upbeat manufacturing data from the U.S., Europe and China raised hopes of a global economic rebound despite the coronavirus pandemic.

Japanese stocks, which led gains among the region’s major markets on Monday, also continued to move upward in Tuesday afternoon trade. The Nikkei 225 gained 1.7% while the Topix index advanced 1.9%. In Australia, Resources stocks are rising on higher commodity prices. The benchmark ASX is higher by 1.9%, as RBA announced its decision to maintain the current policy settings. South Korea’s Kospi gained 1.1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.49 after an earlier low of 93.467. Oil fell due to worries about extra supply coming to market. Russia has started to increase oil and gas output, according to Reuters. Other oil producers are also expected to increase output this month after OPEC and its allies agreed to ease production curbs.

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