TOKYO: Asian stocks hit new highs in early trade Tuesday after a relatively inspirational handover from Wall Street overnight. US stocks closed higher on Monday as shareholders mulled results from Greek elections and winter weather on the East Coast.
The Nasdaq Composite and S&P 500 added 0.3 percent each, while the Dow Jones Industrial Average finished little changed. Meanwhile, the Federal Reserve kicks off its monthly policy meeting later on Tuesday.
Nikkei rallies 1.4% Japan’s key Nikkei 225 index hit a four-week high in early trade, supported by a softer yen trading at 118.5 against the US dollar. Among blue-chip majors, Sony tacked on nearly 2 percent, while Canon and Toyota Motor piled on 1.2 percent, respectively.
Shares of the country’s second largest bank by market capital Sumitomo Mitsui Financial Group was up 2 percent ahead of third quarter earnings data.
ASX adds 0.6% Australia’s benchmark S&P ASX 200 index edged up to an over two-month high following an extended weekend, while the Australian dollar traded at $0.7920 to the dollar – near Monday’s six-year low.
The big four lenders led advances, as investors turned to equities that will ride out ongoing volatility, noted IG’s market strategist Evan Lucas. Commonwealth Bank of Australia notched up 1.3 percent, while National Australia Bank and ANZ Banking added nearly 1 percent, each.
However, weakness in iron ore prices, which fell to their lowest in over five years overnight, weighed on mining shares, capping gains on the bourse. Fortescue Metal slumped nearly 6 percent, while BHP BIlliton and Rio Tinto fell 1.6 and 0.6 percent, respectively.
Mainland indices down China’s benchmark Shanghai Composite index edged down 0.3 percent, while Hong Kong’s Hang Seng index opened down 0.2 percent. Kospi rises 0.4% South Korean shares clinched a one-month high as traders brushed off below-view earnings releases. Despite fourth-quarter earnings missing market expectations, LG Chem jumped 5.4 percent and Samsung SDI trade flat. Energy-related counters enjoyed a rare reprieve on bargain hunting; Kepco rallied more than 2 percent, while S-Oil piled on 4.2 percent.
