Asia markets set to gain as Wall Street touches record highs

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Stocks in Asia were set to trade higher on Tuesday following record closes overnight on Wall Street.

Futures pointed to a higher open for Japanese shares, which return to trade on Tuesday following a holiday the day earlier. The Nikkei futures contract in Chicago was at 23,145 while its counterpart in Osaka was at 22,940. That compared against the Nikkei 225’s last close at 22,850.77.

Meanwhile, shares in Australia gained about 0.3% in early trade. The Reserve Bank of Australia is expected to announce its decision on interest rates later on Tuesday at 11:00 a.m. HK/SIN.

A private survey of China’s services sector is also expected later on Tuesday, with the Markit/Caixin services Purchasing Managers’ Index for October due around 9:45 a.m. HK/SIN.

Investor sentiment in Asia on Tuesday is likely to be buoyed by a strong performance overnight on Wall Street, where the three major indexes all touched record highs. The Dow Jones Industrial Average added 114.75 points to close at 27,462.11 — its first all-time high since mid-July. The S&P 500 also added 0.4% to finish at a fresh all-time high of 3,078.27. The Nasdaq advanced 0.6% to close at 8,433.20, also reaching record levels.

On the trade front, China said Friday it reached a consensus with the U.S. in principle following talks last week. Last month, U.S. President Donald Trump said both sides had come to a “very substantial phase one” trade agreement that is expected to be signed later in November.

The two economic powerhouses have been locked in a trade war that has lasted for more than a year and seen tariffs being slapped on billions of dollars worth of each other’s goods.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.562 after rising from levels around 97.2 yesterday.

The Japanese yen, often seen as a safe-haven currency in times of market uncertainty and turmoil, traded at 108.59 per dollar after weakening from levels below 108.5 in the previous session. The Australian dollar changed hands at $0.6879 after slipping from the $0.692 handle yesterday.

What’s on tap:

  • China: Caixin services Purchasing Managers’ Index for October at 9:45 a.m. HK/SIN
  • Australia: Reserve Bank of Australia interest rate decision at 11:00 a.m. HK/SIN
  • Japan earnings: Suzuki Motor

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