Asian stock markets are in positive territory on Tuesday following the strong gains overnight on Wall Street as investor sentiment was bolstered by upbeat U.S. housing data and hopes of more stimulus measures, which offset worries about the sharp spikes in new coronavirus cases in the U.S. and other parts of the world. Data showing that China’s manufacturing sector expanded more than expected in June also boosted stocks.
The Japanese market is notably higher and the safe-haven yen weakened following the overnight gains on Wall Street. The Nikkei 225 in Japan rose 1.3%, following its more than 2% slide on Monday. Mainland Chinese stocks were also higher on the day, with the Shenzhen component jumping 2% while the Shanghai composite was up 0.8%. Hong Kong’s Hang Seng index advanced 0.6%. The Australian market is rising following the positive cues from Wall Street.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.66 after earlier touching a low of 97.389.
In currency markets, the dollar held onto gains against the yen and the Swiss franc as the recent increase in coronavirus infections supported safe-haven demand for the greenback. The yield on benchmark 10-year Treasury notes was little changed at 0.6348% in Asia as traders braced for U.S. non-farm payrolls data on Thursday, which is forecast to show an improving labour market.