Investing.com - Shares in Sydney gained Tuesday as the central bank held its cash rate at a record low 2% as expected while noting that regional economic slowdowns bear watching, and Tokyo also rose.
The S&P/ASX 200 rose 0.65%, while the Nikkei 225 was up 1.21%. Markets in China are shut until Thursday.
"The global economy is expanding at a moderate pace, with some further softening in conditions in China and east Asia of late, but stronger US growth. Key commodity prices are much lower than a year ago, in part reflecting increased supply, including from Australia," RBA Governor Glenn Stevens said in a statement.
"Australia's terms of trade are falling."
Earlier, Australia's August trade deficit came in at a deficit of A$3.1 billion, wider than the A$2.55 billion expected on a lower-than-expected rise in exports of non-rural-goods and the less-than-expected unwinding of increases in gold exports seen in July.
Overnight, U.S. stocks surged on Monday extending gains from late last week, as hawkish sentiments for an imminent rate hike continue to fade following the release of continued disappointing economic data on Monday.
The Institute of Supply Management reported on Monday morning that its September non-manufacturing purchasing index dipped to 56.9 from a level of 59.0 the previous month and below consensus estimates of a 58.0 reading. In a separate report, the Services Purchasing Managers' Index fell to 55.1 last month, below consensus expectations of a 55.8 reading, amid weakness in growth in new orders and production overall. Both followed a gloomy September national employment report on Friday, when the U.S. Department of Labor reported that non-farm payrolls for September increased by 142,000, significantly below consensus estimates from analysts of a 203,000 gain.
The Dow Jones Industrial Average soared 304.06 or 1.85% on Monday to 16,776.43, building on gains from Friday's session when it rebounded by more than 300 points, completing its strongest reversal in four years. The NASDAQ Composite index and S&P 500 Composite index also rose broadly, in spite of a major sell-off among biotechnology stocks. The NASDAQ jumped 73.48 or 1.56% to 4,781.26 on Monday, as it continued its push back to the symbolic 5,000 level.