Asia-Pacific equities advanced on Tuesday, following a strong rally on Wall Street overnight after the United States and China reached a temporary trade agreement that boosted global investor confidence.
By 11:00 am AEST (1:00 am GMT), most major regional markets were in positive territory. Australia’s S&P/ASX 200 and Japan’s Nikkei 225 hit multi-month highs, climbing 0.7% and 1.8%, respectively, while South Korea’s Kospi 200 traded flat.
U.S. markets on Monday posted their best gains since 9 April, with the Dow Jones Industrial Average up 2.8%, the S&P 500 adding 3.3%, and the Nasdaq Composite surging 4.4%.
Commodities reflected the improved risk sentiment. Brent crude oil rose 1.6% to US$64.96 per barrel, while spot gold fell 2.7% to $3,325.39 per ounce as safe-haven demand receded.
In China, equities traded near six-week highs. The Shanghai Composite rose 0.8% to 3,369.2, while the CSI 300 index gained 1.2% to 3,890.6.
Hong Kong’s Hang Seng Index advanced 3% to 23,549.5, lifted by optimism over the trade deal.
India’s BSE Sensex outperformed, rallying 3.7% to 82,429.9, hitting a seven-month high as investors responded positively to a ceasefire agreement between India and Pakistan.
European equities closed higher in the previous session, with London’s FTSE 100 up 0.6% to 8,605.0, Germany’s DAX rising 0.3% to 23,566.5, and France’s CAC 40 gaining 1.4% to close at 7,850.1.
