Asian stock markets are trading mostly higher on Tuesday, following positive cues from Wall Street overnight.
Traders continued to pick up stocks at reduced levels after recent weakness but remained cautious ahead of the US Federal Reserve’s monetary policy announcement on Wednesday.
While the Fed is widely expected to keep interest rates unchanged, investors are looking for signals in the accompanying statement and projections regarding the outlook for rates.
Meanwhile, the Bank of England, the Bank of Japan, and the Swiss National Bank are also set to announce their monetary policy decisions later in the week.
Japan’s Nikkei rises sharply
Japanese stocks are surging on Tuesday, extending their upward momentum from the last two sessions, as the Nikkei 225 moves well above the 37,900 level.
Gains are seen across most sectors, with financials and technology stocks leading the rally.
The benchmark Nikkei 225 Index closed the morning session at 37,943.23, up 546.71 points, or 1.46%, after touching an intraday high of 38,004.20.
The advance follows a strong finish on Monday.
Among major stocks, SoftBank Group is up nearly 1%, while Fast Retailing, the owner of Uniqlo, is adding 1.5%.
Automakers are also performing well, with Honda gaining over 2% and Toyota advancing nearly 3%.
Hong Kong, China stocks jump on trade optimism
Hong Kong stocks climbed for a second consecutive session on Tuesday, buoyed by hopes that a potential meeting between US President Donald Trump and Chinese President Xi Jinping could ease trade tensions between the two largest economies.
Gains in US-listed Chinese technology stocks overnight also contributed to the upbeat sentiment.
The Hang Seng Index advanced 1.8% to 24,578.14, building on the 0.8% gain from Monday.
The Hang Seng Tech Index saw a sharper rise, climbing 2.4%.
On the mainland, the CSI 300 Index added 0.2%, while the Shanghai Composite Index edged up 0.1%.
Technology stocks led the rally, mirroring strong performances in US markets.
Baidu surged 9.2% to HK$100.50, while Alibaba gained 5.4 % to HK$142.80. Kuaishou Technology rose 4.6 % to HK$66.40, and electric vehicle maker BYD added 3.7 %.
Investor optimism grew after Trump indicated that Xi would visit Washington in the “not too distant future.”
Reports suggest the leaders may meet as early as April to discuss trade, fueling hopes of a potential resolution to ongoing tensions.
Other Asian markets
The Australian stock market is trading modestly higher, adding to gains from the previous two sessions.
The benchmark S&P/ASX 200 is holding well above the 7,850 level.
The S&P/ASX 200 Index is up 17.80 points, or 0.23 %, at 7,871.90, after reaching a high of 7,922.90 earlier in the session.
The broader All Ordinaries Index is also up 0.22 % at 8,099.90.
Seoul shares opened higher on Tuesday, tracking gains from Wall Street, as foreign investors showed strong interest in tech stocks.
The benchmark Kospi rose 20.45 points, or 0.78%, to 2,631.14 in the first 15 minutes of trading.
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