With the exception of the Chinese stock market, the entire Asian region is trading above the breakeven line, boosted by the strong optimism observed throughout the prior U.S. trading hours.
The Asian markets extended the rally seen over the last few days of trading on Monday, as investors are looking for investments that are returning higher yields. However, the regional indexes only posted modest gains, with the Philippine stock market as the top performer, although it only gained 1.8%.
Surprisingly, the Shanghai Stock Exchange is the only major Asian market heading lower, even though lately, the Chinese stock market was the proxy for the entire Asian region.
Helped by last night’s gains, the Japanese Nikkei hit the highest value over the last 10-months of trading, after earlier this year, the index touched the lowest value over the last 26 years of trading.
In the last few trading sessions, the best performing stocks in the Asian region came from the financials, following the much better than expected earnings reports, and from the commodity stocks, as crude oil is approaching the high reached in June while most commodities are trading near the highest value of the current year.
Later in the day, Toyota, the world’s biggest carmaker is expected to report its quarterly data, something that could have a strong impact on the equity markets.
Overnight, the Japanese Nikkei gained 110.14 points (1.06%) to 10,462.61. The Australian S&P/Asx advanced 65.30 points (1.53%) to 4,328.70
Crude oil for August delivery was recently trading at $71.20 per barrel, lower by $0.40.
Gold for August delivery was recently trading lower by $1.10 to $957.60.
Disclosure: No positions