Asian stocks rose on Tuesday, led by a stronger Chinese opening and shaking off the initial drag from tech-driven Wall Street losses, while the dollar held to multi-week lows against other major currencies.
MSCI’s broader Asia-Pacific equity index outside of Japan (.MIAPJ0000PUS) gained 0.2%, oscillating in positive territory after China’s top-tier stocks (.CSI300) rose 0.13% . South Korea (.KS11) gained 0.4%.
Elsewhere, Japan’s Nikkei (.N225) fell 1.84% as the country continues to grapple with a resurgence in COVID cases. Australia (.AXJO) fell 0.33%.
Hong Kong (.HSI) fell 0.11%, although shares in Chinese food delivery giant Meituan (3690.HK) rose 1.59% after the company said it had raised a whopping $ 9. $ 98 billion through a sale of stocks and convertible bonds.
Previously, the major Wall Street indices fell back from the week’s all-time chart highs, heavily weighed down by Tesla Inc. (TSLA.O).
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“This morning in Asia looks like a continuation of what we saw last night where tech stocks took a hit in the US,” said Mick McCarthy, chief market strategist at CMC Markets.
McCarthy said the declines in Japan were surprising given the strength of the yen caused by the falling dollar, which would normally be supportive for Japanese stocks, adding that he thought this would change one way or another later in the day.
The Nasdaq High Tech (.IXIC) moved the most, falling 0.98%, while the Dow Jones Industrial Average (.DJI) was down 0.36% and the S&P 500 (.SPX) was 0. , 53%.
However, e-mini futures for the S&P 500 were up 0.13%, suggesting that the markets could rally later in the day.
In currency markets, the dollar continued its recent weakness, falling further from the six-week lows it reached on Monday.
“In our view, the US dollar may remain heavy this week as the focus shifts from the outperformance of the US economy to improving the overall global economic outlook,” CBA analysts wrote in a research note.
In Asian trade, the dollar fell 0.08% against the yen, while the Australian dollar gained 0.14% and the euro gained 0.07% against the dollar, respectively.
The benchmark 10-year Treasury yield rose to 1.6029% compared to its US close of 1.599%.
Oil prices continued to rise. US crude rose 0.19% to $ 63.50 a barrel and Brent crude rose to $ 67.2 a barrel.
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