Investing.com - Asian equities rose on Tuesday with Hong Kong and mainland markets leading the gain. Nikkei was the exception however as it gave up its profit in the morning trading session and closed in the red.
Positive momentum in the U.S. markets overnight continued to be cited as supportive for Asian equities. The S&P 500 closed 1.4% higher at 2,655, following Friday’s 1.5% gain. The Dow also rose 1.7% while Nasdaq added 1.5%. OPEC was in focus as it said in a monthly report that world oil demand would likely grow faster than expected this year.
“Recently, healthy and steady economic development in major global oil demand centers was the key driver behind strong oil demand growth,” OPEC said in the report.
China January new loans beat estimate and reached a record $458 billion. Reports that suggested China Securities Regulatory Commission and other regulators have urged major shareholders in listed companies to boost their holdings and some mutual funds to avoid selling this week have also gathered some attention. The reports came after Chinese shares plunged the most in two years last week. Shanghai Composite and Shenzhen Composite opened 1.0% and 1.35% higher respectively by 1:05am ET. The Chinese mainland markets would be closed from 15-21th February for Lunar New Year celebrations.
Hong Kong’s Hang Seng Index also advanced 1.5%. Index heavyweight Tencent Holdings (HK:0700) led the gain, while “Apple-concept stocks” also gathered strength following a 4% jump in the technology giant’s stock price overnight.
Japanese equities were in focus today as they resumed online and played catchup from yesterday. The Nikkei 225 opened higher but gave up its profits and in the afternoon and closed 0.8% lower. Bank of Japan governor Kuroda reiterated the need to maintain monetary easing policies and support the economy, adding that the recent economy selloff was not a sign of deteriorating outlook.
The S&P/ASX 200 closed 0.6% higher with miners, moving higher for the first time in three sessions. IT and telco sectors drove the gains while a NAB survey on business conditions and confidence was cited as supportive. Separately, Reserve Bank of Australia Assistant Governor Luci Ellis warned on slow wage growth and said it could take longer for the growth to pick up even if the jobless rate hits the estimated full employment level.
Economic calendars will be the focus later this week, with the U.S.CPI and retail sales due Wednesday. Japan will also report its fourth-quarter gross domestic product on the same day.