Asian Markets Update

Asian stock markets are mostly higher on Tuesday, with some of the markets recovering from early losses following the negative cues overnight from Wall Street.

Nevertheless, worries about rising U.S.-China trade tensions weighed on sentiment after a report from Bloomberg said the U.S. is preparing to announce tariffs on all remaining Chinese imports if next month’s talks between President Donald Trump and Xi Jinping fail to ease the trade war.

The Australian market climbed into positive territory after opening lower following the negative cues from Wall Street in volatile trade. In addition, weak gold and oil prices weighed on the resources sector.

The benchmark S&P/ASX 200 Index is adding 16.60 points or 0.29 percent to 5,743.80, after touching a low of 5,691.70. The broader All Ordinaries Index is up 12.90 points or 0.22 percent to 5,826.70. Australian shares rallied on Monday as bargain hunters picked up beaten-down stocks across the board after a recent sell-off.

Gold miners are losing after gold prices settled at a one-week low overnight. Evolution Mining is losing almost 2 percent and Newcrest Mining is down more than 1 percent.

Oil stocks are also weak after crude oil prices dipped overnight. Woodside Petroleum is lower by 0.6 percent, Santos is declining 0.7 percent and Oil Search is losing more than 2 percent.

In the healthcare sector, ResMed is lower by more than 1 percent, CSL is losing 1 percent and Cochlear is down 0.8 percent.

Meanwhile, the major miners are mostly higher after iron ore prices flattened and copper prices steadied. Rio Tinto is advancing almost 1 percent and Fortescue Metals is adding 0.8 percent, while BHP is down 0.2 percent.

The big four banks are also mostly higher ahead of ANZ Bank kick-starting the banking sector’s earnings results on Wednesday. ANZ Banking, Westpac and Commonwealth Bank are up in a range of 0.3 percent to 0.6 percent, while National Australia Bank is down 0.3 percent.

AMP said it’s banking arm will reduce or remove 20 fees to simplify its product offering to customers. Shares of AMP are losing more than 2 percent.

In the currency market, the Australian dollar is lower against the U.S. dollar on Tuesday. The local currency was quoted at $0.7060, down from $0.7099 on Monday.

The Japanese market also recovered after a weak start following the negative cues from Wall Street as well as on lower crude oil prices. A weaker yen is lending support to exporters’ shares.

The benchmark Nikkei 225 Index is advancing 138.00 points or 0.65 percent to 21,287.80, after touching a low of 21,035.88 in early trades. Japanese shares closed lower on Monday.

The major exporters are higher on a weaker yen. Mitsubishi Electric is higher by more than 3 percent, Canon is advancing more than 1 percent, Sony is adding 0.3 percent and Panasonic is up 0.2 percent.

In the tech sector, Tokyo Electron is rising 4 percent and Advantest is gaining almost 4 percent. Among auto makers, Toyota is higher by more than 1 percent and Honda is adding 0.5 percent.

In the banking sector, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial are advancing more than 1 percent each.

In the oil space, Inpex is losing more than 2 percent and Japan Petroleum is declining almost 1percent after crude oil prices fell overnight.

Among the other major gainers, Sumco Corp is gaining more than 5 percent, while Oji Holdings and Komatsu are higher by 5 percent each. Yaskawa Electric is rising more than 4 percent.

On the flip side, Nippon Electric Glass is losing almost 8 percent, while Daiwa Securities and Tokyo Fudosan are lower by more than 3 percent each.

In the currency market, the U.S. dollar is trading in the mid 112 yen-range on Tuesday.

Elsewhere in Asia, Shanghai, South Korea, New Zealand, Malaysia and Taiwan are also higher with modest gains, while Hong Kong, Singapore and Indonesia are lower.

On Wall Street, stocks failed to sustain an early move to the upside and slipped into negative territory after a report from Bloomberg said the U.S. is preparing to announce tariffs on all remaining Chinese imports if next month’s talks between Presidents Donald Trump and Xi Jinping fail to ease the trade war.

The Dow slumped 245.39 points or 1 percent to 24,442.92, the Nasdaq tumbled 116.92 points or 1.6 percent to 7,050.29 and the S&P 500 fell 17.44 points or 0.7 percent to 2,641.25.

Meanwhile, the major European markets all moved to the upside on Monday. While the French CAC 40 Index rose by 0.4 percent, the German DAX Index and the U.K.’s FTSE 100 Index jumped by 1.2 percent and 1.3 percent, respectively.

Crude oil prices dipped on Monday in cautious trade after Chinese stock markets succumbed to heavy selling pressure once again on concerns over the slowing economy. WTI crude for December declined $0.55 or 0.8 percent to close at $67.04 a barrel on the New York Mercantile Exchange.