Asian stocks rose on Tuesday, driven by a stronger opening of China and getting rid of the initial pullback from technology-based Wall Street losses, while the dollar remained at weekly lows against other major currencies.
The largest MSCI index of Asia-Pacific equities outside Japan (.MIAPJ0000PUS) gained 0.2%, moving into positive territory after Chinese chips (.CSI300) rose 0.13%. South Korea (.KS11) gained 0.4%.
Elsewhere, the Japanese Nikkei (.N225) fell 1.84% as the country continues to struggle with a recurrence of COVID cases. Australia (.AXJO) decreased by 0.33%.
Hong Kong (.HSI) fell 0.11%, although shares of Chinese food delivery giant Meituan (3690.HK) rose 1.59% after the company said it had raised a whopping 9.98 billion dollars through a sale of convertible shares and bonds.
Earlier, major Wall Street indices retreated from the list of successful records set last week, with a major attraction from Tesla Inc (TSLA.O).
The electric car maker fell 3.4 percent after a Tesla vehicle believed to be operating without anyone in the driver’s seat crashed into a tree north of Houston on Saturday, killing two occupants. Read more
“This morning in Asia seems to be a continuation of what we saw last night, when technology stocks were hit in the US,” said Mick McCarthy, Chief Markets Strategic Officer, CMC Markets.
McCarthy said the decline in Japan was striking, given the strength of the yen caused by the fall of the dollar, which would normally support Japanese equities, adding that he believed this would change one way or another. late in the day.
The Nasdaq (.IXIC) was the largest engine, down 0.98%, while the Dow Jones industrial average (.DJI) fell 0.36% and the S&P 500 (.SPX) 0.53%.
However, e-mini futures for the S&P 500 rose 0.13%, suggesting that markets could return later that day.
In the foreign exchange markets, the dollar continued its recent weakness, falling further from the six-week lows it reached on Monday.
“In our view, the dollar may remain heavy this week as the focus shifts from the US economic performance to improving the global economic outlook to a broader level,” CBA analysts wrote in a research note.
In Asian trade, the dollar fell 0.08% against the yen, while the Australian dollar gained 0.14% and the euro 0.07% against the dollar, respectively.
The yield on 10-year benchmark banknotes increased to 1.6029% compared to its US closing of 1.599%.
Oil prices continued to rise. American crude oil rose 0.19% to $ 63.50 a barrel, and Brent crude rose to $ 67.2 a barrel.
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