Investing.com - Asian stock markets were broadly higher on Tuesday, recovering from 2012 lows hit in the previous session, as market sentiment found support ahead of emergency talks by the Group of Seven industrialized nations on the euro zone crisis.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.9%, Australia’s ASX/200 Index jumped 1.5%, while Japan’s Nikkei 225 Index advanced 1%.
Asian equities sold off on Monday, as investors were spooked by a surprisingly weak U.S. jobs report, fears over an escalating debt crisis in the euro zone and a deeper-than-expected slowdown in Chinese economic activity.
But regional equities rebounded Tuesday amid hopes global policymakers will increase efforts to boost the world economy.
Finance ministers from the Group of Seven leading industrialized nations were to hold an emergency conference call later in the day to discuss the euro zone’s ongoing debt crisis, now in its third year.
Traders are closely watching several monetary policy meetings due this week, including the European Central Bank on Wednesday and Bank of England on Thursday, for clues on their responses to weakening global growth.
Federal Reserve Chairman Ben Bernanke on Thursday will testify before a congressional committee about the state of the U.S. economy.
Earlier in the day, the Reserve Bank of Australia cut its benchmark interest rate by 0.25% to 3.50% in an effort to stimulate domestic growth in the face of growing international turmoil.
The cut was the second in a row from the Australian central bank after the RBA lowered the cash rate in May by a larger-than-expected 0.5%.
Shares in Australia were higher following the news, rebounding from the previous day’s six-month low, as miners and lenders led gains.
National Bank of Australia saw shares rise 2.4%, ANZ Banking Group gained 2.1%, while Commonwealth Bank of Australia added 2%.
Mining giants BHP Billiton, Rio Tinto and Newcrest Mining contributed to gains, climbing between 1.3% and 1.9%.
But shares in Qantas Airways plunged 18.6% to an all-time low after warning that underlying profit before tax could drop by as much as 90% this year due to soaring fuel prices, industrial action and weak travel demand.
Meanwhile, in Tokyo, the Nikkei rose for the first time in four days, as exporters clawed back some of their recent losses.
Shares in Canon led gains, with a 3.4% gain after announcing plans to buy back up to JPY50 billion yen of its outstanding shares.
Other exporters were higher as well, with shares in Sony climbing 3.3% to recover from Monday’s record-low. Automakers Mazda and Honda surged 5.6% and 2.1% respectively.
But index heavyweight Fast Retailing tumbled 8.8% after reporting that domestic same-store sales for its Uniqlo casual-clothes chain fell 10.3% compared to the year-ago period.
The Nikkei is down almost 18% since hitting a one-year high on March 27, after rallying more than 19% in the first three months of the year, as China’s economic growth slowed and on renewed concern about Europe’s debt crisis.
Meanwhile, in Hong Kong, gains in property developers led the market higher after Bank of America said in a report that rewards outweigh the risks of buying into the sector at current levels.
Shares in Hang Lung Properties rose 2.25%, while Cheung Kong and Henderson Land, two of the bank’s top picks in the sector, added 1% and 0.9% respectively.
Looking ahead, the outlook for European stock markets was upbeat, buoyed by hopes that European leaders will take fresh action to stem the crisis roiling the euro zone.
The EURO STOXX 50 futures pointed to a gain of 0.2%, France’s CAC 40 futures rose 0.55%, London’s FTSE 100 futures added 0.3%, while Germany's DAX futures pointed to a rise of 0.4% at the open.
Later Tuesday, the euro zone was to produce official data on retail sales, while Germany was to publish official data on factory orders.
In the U.S., the Institute for Supply Management was to release a report on non-manufacturing activity, a key indicator of economic health.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.9%, Australia’s ASX/200 Index jumped 1.5%, while Japan’s Nikkei 225 Index advanced 1%.
Asian equities sold off on Monday, as investors were spooked by a surprisingly weak U.S. jobs report, fears over an escalating debt crisis in the euro zone and a deeper-than-expected slowdown in Chinese economic activity.
But regional equities rebounded Tuesday amid hopes global policymakers will increase efforts to boost the world economy.
Finance ministers from the Group of Seven leading industrialized nations were to hold an emergency conference call later in the day to discuss the euro zone’s ongoing debt crisis, now in its third year.
Traders are closely watching several monetary policy meetings due this week, including the European Central Bank on Wednesday and Bank of England on Thursday, for clues on their responses to weakening global growth.
Federal Reserve Chairman Ben Bernanke on Thursday will testify before a congressional committee about the state of the U.S. economy.
Earlier in the day, the Reserve Bank of Australia cut its benchmark interest rate by 0.25% to 3.50% in an effort to stimulate domestic growth in the face of growing international turmoil.
The cut was the second in a row from the Australian central bank after the RBA lowered the cash rate in May by a larger-than-expected 0.5%.
Shares in Australia were higher following the news, rebounding from the previous day’s six-month low, as miners and lenders led gains.
National Bank of Australia saw shares rise 2.4%, ANZ Banking Group gained 2.1%, while Commonwealth Bank of Australia added 2%.
Mining giants BHP Billiton, Rio Tinto and Newcrest Mining contributed to gains, climbing between 1.3% and 1.9%.
But shares in Qantas Airways plunged 18.6% to an all-time low after warning that underlying profit before tax could drop by as much as 90% this year due to soaring fuel prices, industrial action and weak travel demand.
Meanwhile, in Tokyo, the Nikkei rose for the first time in four days, as exporters clawed back some of their recent losses.
Shares in Canon led gains, with a 3.4% gain after announcing plans to buy back up to JPY50 billion yen of its outstanding shares.
Other exporters were higher as well, with shares in Sony climbing 3.3% to recover from Monday’s record-low. Automakers Mazda and Honda surged 5.6% and 2.1% respectively.
But index heavyweight Fast Retailing tumbled 8.8% after reporting that domestic same-store sales for its Uniqlo casual-clothes chain fell 10.3% compared to the year-ago period.
The Nikkei is down almost 18% since hitting a one-year high on March 27, after rallying more than 19% in the first three months of the year, as China’s economic growth slowed and on renewed concern about Europe’s debt crisis.
Meanwhile, in Hong Kong, gains in property developers led the market higher after Bank of America said in a report that rewards outweigh the risks of buying into the sector at current levels.
Shares in Hang Lung Properties rose 2.25%, while Cheung Kong and Henderson Land, two of the bank’s top picks in the sector, added 1% and 0.9% respectively.
Looking ahead, the outlook for European stock markets was upbeat, buoyed by hopes that European leaders will take fresh action to stem the crisis roiling the euro zone.
The EURO STOXX 50 futures pointed to a gain of 0.2%, France’s CAC 40 futures rose 0.55%, London’s FTSE 100 futures added 0.3%, while Germany's DAX futures pointed to a rise of 0.4% at the open.
Later Tuesday, the euro zone was to produce official data on retail sales, while Germany was to publish official data on factory orders.
In the U.S., the Institute for Supply Management was to release a report on non-manufacturing activity, a key indicator of economic health.